SECTION ONE (Compulsory) Answer all six questions in this section. Each question carries 10 marks.
, b7 |! y) o! a" R7 KQuestion 1 (Total: 10 marks) Read and state whether the following statement are TURE (T) or FALSE (F). For false statements you are required to corrected statements. Write all answers on the answer sheets. 6 s& n! s. [& G- q
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1.1 A “Carriage Outwards” account normally has a debit balance. 9 X+ V5 l, H5 S3 e5 _; p
' I3 M. C! z. o$ }- K1.2 “Long Term Investment” is an item of shareholders’ fund.
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) J& k) t1 h9 t* h9 h1.3 “Cash basis accounting” means that accounts only record items which have realizable values in cash. * V/ G1 }" K; S$ K3 S
# p( Q1 J6 N0 ^4 U ~+ O1.4 A “Purchases” account records only items which were bought for resale.
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1.5 “Share Premium” is a capital profit. 1.6 A “quick ratio” tests the liquidity of a business. - u/ U) a. [$ c; U" z2 N2 h2 g# d
, G) g& |0 d& L5 H8 ~! z' [1.7 A variable cost is a cost which changes according to market conditions. - E+ ]: t% D/ \5 Q
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Question 2 (Total: 10 marks) Read the following statements and choose the correct answers by writing the alphabetical letter on the answer sheets. % K9 P- Z6 n$ w, j! w# \, m
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2.1 A “relevant cost” is 6 i) U- F* O1 C5 a8 F; y8 W6 }2 I
(a) a cost which has been paid - `) w v& q5 x# W
(b) a future cost which is associated with the decision at hand.7 U& |5 Y# S8 A2 }2 `# W
(c) a future cost which must be incurred if a firm is to continue in business.
% @* c2 K: `* w- M: Q- w(d) a fixed cost in a project : M! r, k% j: f/ o( _
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2.2 Provision for doubtful debts is
, ?3 a0 @$ ?1 W3 |1 T" a. P9 x(a) an account recording all debts which are doubtful in collection.0 V$ J, S$ _$ d- N/ q7 D
(b) a current liability.
. I& `8 ?) p" F3 W5 |+ ]: l- f4 G(c) a current asset. : }9 E2 l! {5 s* p( u
(d) a reduction in the value of an asset. i) N9 L$ o' P
+ \- T. h# C, _0 ]- k2.3 A cash flow statement
8 ^! W! Z$ u0 k/ N) M/ p4 g(a) shows the amounts of money in cash, or near cash form, received and paid out by a firm from trading during a period. : \0 a/ n$ W3 v4 D5 }3 K9 F
(b) shows the amounts of money in cash, or near cash form, received and paid out by a firm from all activities during a period. w+ p/ j: I+ ~6 _
(c) shows the change in financial positions of a firm during a period. 2 ]" T$ D' ?6 A
(d) shows a firm’s cash transactions during a period. ' X) D }+ I3 p3 o4 X8 q
2.4 A sole trader’s capital at a particular date equals
4 v) V; U; U% M" y8 N; B(a) the amount of cash he has in the business.8 Y) b) o! l8 k/ A* l k( c
(b) his net assets at cost in the business.0 Q: @3 s5 v4 |7 a
(c) all his assets in the business at realizable values.. v" A, L0 ?& j. Y* H. ~
(d) all his assets at book values in the business less all liabilities of the business. 1 @3 `3 u d# c% a; R( o+ u
, ~5 V2 `9 P, `5 l3 ^1 v. m2.5 A balance sheet shows
# V# u/ H$ s3 ~(a) all assets of a firm at market values and all its liabilities at a particular date. " s- P( S; ?# o1 z
(b) all known assets and all known liabilities and capital of a firm at a particular date. . E. u. X4 k& Q% W
(c) estimated values of all assets, capital and liabilities of a firm at a particular date.
* p( k; m! ?, K: j(d) all assets, all liabilities and proprietors’ fund at book values of a firm at a particular date.
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2.6 A “liquid asset” means
0 X2 `( G+ h# d) r9 |3 e(a) an asset in cash or readily convertible to cash. ; ]3 A# k' N3 E2 _
(b) an asset which has not a physical form.
0 X. {6 W' m R(c) an investment which is realizable at any time. . n: |. `! Y4 D! b9 h( R
(d) a current asset other than trading stock * `+ s+ K( d3 V `- l$ q
& e) v' v6 [5 y7 Q0 e9 m2.7 A machine bought for resale is
6 Z0 z$ W8 v4 o1 p(a) a capital expenditure 5 K+ v) _" N' `0 x
(b) a trading stock item
* k* {. G$ T( ], [5 U% _7 {(c) a fixed asset
: k$ A* o1 B: l: q4 }+ M$ C; z. y(d) a production cost
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2.8 A “break-even” sales volume means
B" g4 O! p6 t# z3 r# H(a) a sale volume which will produce no profit or loss 7 |, b* f: Z$ }% T
(b) a minimum sales volume which will produce the target profit.
+ J0 `, v5 Z8 k3 ]2 S) \(c) a sales volume which is very close to budget.
6 y) l& _# A+ J" D! W0 J' Z1 G(d) a sales volume which is below the break-even point.
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?1 U7 d. c' V* x- D5 r/ D6 E2.9 A dividend paid by a company is
7 \4 L7 `$ d1 @/ k6 Q- b( H/ H4 @(a) an appropriation of profits. 5 i) {2 \9 n3 o7 ~; W) ~1 m
(b) a capital expenditure. , P) \3 q. R2 F, c, ^) R- a) ^! H
(c) a revenue expenditure. & u2 q" `- a! [( W, b( J: ]
(d) a return on capital + }1 C& W/ R+ i# @* Z
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2.10 Capital profits mean
/ E+ ?( W! O8 F) |! O2 j7 u }(a) profits derived from the use of capital
2 m& y2 U5 c. I7 ?(b) profits derived from the use of fixed assets.
: \" k4 Z! {+ t6 Z3 H+ ]( F(c) returns on capital. & D" t& d% `) [7 J2 k
(d) profits from disposal of fixed assets. |
发表于 2012-8-16 08:05:44
