1. [单选题]11 Which of the following statements are correct?
1 A company might make a rights issue if it wished to raise more equity capital. 2 A rights issue might increase the share premium account whereas a bonus issue is likely to reduce it. 3 A bonus issue will reduce the gearing (leverage) ratio of a company. 4 A rights issue will always increase the number of shareholders in a company whereas a bonus issue will not.
A. 1 and 2
B. 1 and 3
C. 2 and 3
D. 2 and 4
2. [单选题]13 Which of the following correctly describes the imprest system for operating petty cash?
A. A
B. All expenditure out of petty cash must be supported by a properly authorised voucher.
C. A regular equal amount of cash is transferred into petty cash.
D. The exact amount of expenditure out of petty cash is reimbursed at intervals.
E. A budget is fixed for a period which petty cash expenditure must not exceed.
3. [单选题]19 At 30 June 2004 a company’s allowance for receivables was $39,000. At 30 June 2005 trade receivables totalled $517,000. It was decided to write off debts totalling $37,000 and to adjust the allowance for receivables to the equivalent of 5 per cent of the trade receivables based on past events.
What figure should appear in the income statement for these items?
A. $61,000
B. $22,000
C. $24,000
D. $23,850
4. [单选题]Which of the following statements relating to internal and external auditors is correct?
A. Internal auditors are required to be members of a professional body
B. Internal auditors’ scope of work should be determined by those charged with governance
C. External auditors report to those charged with governance
D. Internal auditors can never be independent of the company
5. [单选题]12 Which of the following statements are correct?
(1) Contingent assets are included as assets in financial statements if it is probable that they will arise. (2) Contingent liabilities must be provided for in financial statements if it is probable that they will arise. (3) Details of all adjusting events after the balance sheet date must be given in notes to the financial statements. (4) Material non-adjusting events are disclosed by note in the financial statements.
A. 1 and 2
B. 2 and 4
C. 3 and 4
D. 1 and 3
6. [单选题]19 Which of the following statements about intangible assets in company financial statements are correct according
to international accounting standards? 1 Internally generated goodwill should not be capitalised. 2 Purchased goodwill should normally be amortised through the income statement. 3 Development expenditure must be capitalised if certain conditions are met.
A. 1 and 3 only
B. 1 and 2 only
C. 2 and 3 only
D. All three statements are correct
7. [单选题]13 At 1 January 2005 a company had an allowance for receivables of $18,000
A. $49,500
B. $31,500
C. $32,900
D. $50,900
8. [单选题]16 Which of the following events between the balance sheet date and the date the financial statements are
authorised for issue must be adjusted in the financial statements? 1 Declaration of equity dividends. 2 Decline in market value of investments. 3 The announcement of changes in tax rates. 4 The announcement of a major restructuring.
A. 1
B. 1 only
C. 2 and 4
D. 3 only
E. None of them
9. [单选题]15 What journal entry is required to record goods taken from inventory by the owner of a business?
A. Debit Drawings
B. Debit Sales
C. Debit Drawings
D. Debit Purchases
10. [单选题]Under certain circumstances, profits made on transactions between members of a group need to be eliminated from the consolidated financial statements under IFRS.
A. Which of the following statements about intra-group profits in consolidated financial statements is/are correct?
B. (i) The profit made by a parent on the sale of goods to a subsidiary is only realised when the subsidiary sells the goods to a third party
C. (ii) Eliminating intra-group unrealised profits never affects non-controlling interests
D. (iii) The profit element of goods supplied by the parent to an associate and held in year-end inventory must be eliminated in full
E. (i) only
F. (i) and (ii)
G. (ii) and (iii)
H. (iii) only
