金融英语证书：会计真题1

会计考友

SECTION ONE (Compulsory) Answer all six questions in this section. Each question carries 10 marks.
4 m% I' H4 y+ a; PQuestion 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.
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1.1 A “Carriage Outwards” account normally has a debit balance.
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. x( b+ G8 G- v: `/ z0 P1.2 “Long Term Investment” is an item of shareholders’ fund.

1.3 “Cash basis accounting” means that accounts only record items which have realizable values in cash.
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1.4 A “Purchases” account records only items which were bought for resale.

+ b. j# x. a* @& {  a1.5 “Share Premium” is a capital profit. 1.6 A “quick ratio” tests the liquidity of a business.

1.7 A variable cost is a cost which changes according to market conditions.

: i/ W9 e  ?. m/ n# W+ B! R+ sQuestion 2 (Total: 10 marks) Read the following statements and choose the correct answers by writing the alphabetical letter on the answer sheets.

2.1 A “relevant cost” is
$ I1 H$ C, M/ V7 p# a# j8 X(a) a cost which has been paid
6 k. i0 n' T9 P( z9 o(b) a future cost which is associated with the decision at hand.
1 L- z$ A/ v* {7 [0 E(c) a future cost which must be incurred if a firm is to continue in business.
(d) a fixed cost in a project
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2.2 Provision for doubtful debts is
# D5 T) e$ L8 \% |/ M(a) an account recording all debts which are doubtful in collection.
+ H6 P& j; D9 r$ K! |# b8 ? (b) a current liability.
(c) a current asset.
6 B3 {2 l0 _$ E  E0 u(d) a reduction in the value of an asset.

/ {; _4 S" M/ r2.3 A cash flow statement
(a) shows the amounts of money in cash, or near cash form, received and paid out by a firm from trading during a period.
(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.
(c) shows the change in financial positions of a firm during a period.
, V8 w/ d0 M" p, \- U) K8 }5 B(d) shows a firm’s cash transactions during a period.
+ e' _/ t6 v0 n- F5 a2.4 A sole trader’s capital at a particular date equals
(a) the amount of cash he has in the business.
(b) his net assets at cost in the business.
) a* M- K- ^; y( u6 L (c) all his assets in the business at realizable values.
(d) all his assets at book values in the business less all liabilities of the business.

3 \# k2 `9 e' [2.5 A balance sheet shows
(a) all assets of a firm at market values and all its liabilities at a particular date.
(b) all known assets and all known liabilities and capital of a firm at a particular date.
# F& L( |: j( y* w- l, c! V. x) |(c) estimated values of all assets, capital and liabilities of a firm at a particular date.
- |  r6 R& _% ^+ F/ k* L(d) all assets, all liabilities and proprietors’ fund at book values of a firm at a particular date.

8 B, P! W3 a# D1 U0 B- a2.6 A “liquid asset” means
! M/ e1 S. N1 a3 ?4 H# m. G(a) an asset in cash or readily convertible to cash.
. @* h( n# z, `, g; x1 d: X4 M& \(b) an asset which has not a physical form.
(c) an investment which is realizable at any time.
(d) a current asset other than trading stock
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2.7 A machine bought for resale is
; W' p+ n$ ~4 h6 T(a) a capital expenditure
(b) a trading stock item
1 P/ b; W8 U; L+ ?" c(c) a fixed asset
" [- S! H1 A/ }  ?- |7 O6 w+ n(d) a production cost
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; K3 h* j% q2 }* f5 F2.8 A “break-even” sales volume means
. t6 [! S* R: S(a) a sale volume which will produce no profit or loss
(b) a minimum sales volume which will produce the target profit.
+ v1 ~8 Q' Z5 c& b# |( h+ Q' K% {% c) r(c) a sales volume which is very close to budget.
, R4 w& \6 ~$ `5 }6 n(d) a sales volume which is below the break-even point.

) H9 j. E8 J& k" r5 }/ L. B2.9 A dividend paid by a company is
(a) an appropriation of profits.
9 ]7 `/ {# B) l' Q(b) a capital expenditure.
; K, t) |8 p; ^(c) a revenue expenditure.
8 r1 X9 P5 _/ o" n4 o+ ^(d) a return on capital

2.10 Capital profits mean
. Z$ T- |- {- z9 j(a) profits derived from the use of capital
(b) profits derived from the use of fixed assets.
(c) returns on capital.
(d) profits from disposal of fixed assets.