1、（原）金融专业英语（ FECT）中级会计模拟试卷 3及答案与解析 Question 1 1 In times of rising prices, the LIFO method of inventory valuation is more prudent than the FIFO method. （ A）正确 （ B）错误 2 In order to prepare an income and expenditure account, a club will follow all the basic rules for preparing a profit and loss account.
2、 （ A）正确 （ B）错误 3 A foremans salary is a direct cost with respect to the departments individual products. （ A）正确 （ B）错误 4 When factory has spare capacity, the fixed costs are relevant in respect to the additional order. （ A）正确 （ B）错误 5 In order to lower breakeven point in unit, business should increa
3、se its fixed costs. （ A）正确 （ B）错误 6 When the percentage of sales method is used, the estimated bad debt expenses should be adjusted by the existing balance of doubtful debt provision. （ A）正确 （ B）错误 Question 2 7 The following costs are relevant to make a decision except _. （ A） differential cost. （ B
4、） opportunity cost. （ C） historical cost. （ D） incremental cost. 8 Take the deflation into consideration, which method of inventory valuation will usually produce the highest profit and the lowest closing inventory value. （ A） FIFO method. （ B） Weighted average cost method. （ C） LIFO method. （ D） No
5、ne of the above. 9 A manufacturer has the following figures for the year ended 31 December 2003: Direct materials 7,000 Factory overheads 10,000 Direct labor 5,000 Increase in works-in-progress 2,000 The conversion cost is （ A） 12,000. （ B） 17,000. （ C） 15,000. （ D） 10,000. 10 Julie plans to sell de
6、licate paper boxes in her retail shop. The selling price is 10, while the cost is 5 per unit. The fixed costs she encounters will be 600. Then the breakeven is _. （ A） 40 units. （ B） 60 units. （ C） 80 units. （ D） 120 units. 11 The following expenditure should be. debited to the asset account except
7、_. （ A） additions that extend the life of an asset. （ B） ordinary repair costs. （ C） replacements that expand the uses of an asset. （ D） None of the above. 12 Following the preparation of the profit and loss account, it is discovered that work-in-progress has been overvalued by 2,000 and an accrued
8、expense of 500 has been overvalued. This will have resulted in _. （ A） an overstatement of net profit of 2,500. （ B） an understatement of net profit of 2,500. （ C） an overstatement of net profit of 1,500. （ D） an understatement of net profit of 1,500. 13 The accounting concept or convention, which,
9、the economic life of a business can be divided into artificial time periods, is based on _. （ A） materiality Concept. （ B） going Concern Concept. （ C） matching Concept. （ D） prudence Concept. 14 A budget which, by recognizing different cost behaviour is designed to change as the volume of actual out
10、put changes is _. （ A） fixed Budget. （ B） zero Budget. （ C） flexible Budget. （ D） rolling Budget. 15 An old equipment has a book value of $ 350,000, deprecation expense 100,000, and current disposal value of 150,000. Which figure is the relevant cost to deposal the equipment? （ A） 350,000. （ B） 100,
11、000. （ C） 150,000. （ D） 250,000. 16 Eva, Francis and Gigi have been in business for many years. They have always shared profits and losses equally. No goodwill account has been created in the books. On 1 January Year 7 they agree that Henry will join the partnership. Henry pays 25,000 as his contrib
12、ution. They agree to share profits and losses equally. The Net Assets before Henrys admission is $ 60,000. After Henrys admission, the goodwill is equal to _. （ A） 15,000. （ B） 5,000. （ C） 35,000. （ D） 20,000. Question 3 17 Considering purchasing KH Company, you are evaluating KHs revenue generalizi
13、ng ability. Then the following inventory valuation errors have been discovered. the 2000 year end inventory was overstated by 23,000 the 2001 year end inventory was understated by 61,000 the 2002 year end inventory was understated by 17,000 And the report income before taxes for KH was: Year Income
14、before taxes 2000 138,000 2001 254,000 2002 168,000 Required: (a)How much should the reported income before taxes have been for the years 2000, 2001 and 2002? (b)Discuss if 2000 year end inventorys overvaluation will influence file 2002 years report income before taxes or not. Question 4 18 Sam Comp
15、any Ltd. produces a range of products and absorbs production overhead using a rate of 168% on direct wages. The absorption rate was calculated from following budgeted figures: Direct wages 100,000 Fixed production overhead 90,000 Variable production overhead 78,000 Sam is making component W, which i
16、s an essential part of product M. The cost of making component W is as follows: Raw material 10 Direct wages 8 Production overhead 18 36 It is found that component W could be bought from an outside supplier at 21. It is unlikely to reduce any production costs even if component W is acquired from out
17、side. Required: (a)Determine the overhead absorption rate. (b)Advise whether the company should continue making component W or buy it from outside. Question 5 19 1. You are auditing a business, May Company for 1999 and 2000. You discover that May Company has adopted the following treatment of certai
18、n items in the accounts. In 1999, inventory valuation method was FIFO, but in 2000 LIFO method has been used, as the prices is rising. Insurance expense from 1 July 2000 to 1 July 2001 has been absolutely recorded in the accounts for expenses incurred. Required: State the fundamental accounting conc
19、ept which governs each of the above two treatments: (a)inventory valuation method (b)insurance expense and discuss the effect which each treatment will have on the following financial ratios: (i)net profit margin (ii)return on capital employed (iii)current ratio (iv)quick (acid test)ratio Question 6
20、 20 ABC Sport acquired equipment at a cost of 200,000 on 1 January 2003. The asset was estimated to have a scrap value of 20,000 and an estimated useful life of 5 years. If you are the accountant of ABC Sport, please compute the annual depreciation expense for each year respectively. Required: (a)Us
21、ing straight-line method. (b)Using double-declining-balance method (reducing balance method). (c)Using sum-of-the-years-digits method. Question 7 21 The assets and liabilities of the Music Club on 1 January 2002 were as follows: Clubhouse 1,375,000 Music Equipment (Cost) 300,000 Music Equipment (Boo
22、k Value) 175,000 Bank & Cash 533,500 Bar Stock 145,500 Bar Debtors 15,500 Rates Prepaid 34,000 Subscriptions-in Arrear 5,500 Subscriptions-in Advance 23,500 Bar Creditor 63,500 Loan to Club 540,000 Accruals-Electricity 19,000 Accruals- Miscellaneous Expenses 37,500 Accruals-Loan Interest 16,500 Accr
23、uals-Rent of Music Ground 11,000 The receipts and payments account for the year ended 31 December 2001 shown below was prepared by the honorary treasurers. Receipts Bar Sales 2,015,000 Telephone 2,000 Hire of Music Facilities 890,000 Christmas Party 88,500 Miscellaneous 43,000 Subscriptions 170,000
24、3,208,500 Payments Bar Purchases 1,468,500 Loan Repayment 85,000 Rent of Music Ground 49,000 Rates 160,000 Electricity 153,000 Equipment Repairs 163,000 Expenses of Christmas Party 33,500 Maintenance 66,500 Wages 70,000 Telephone 6,500 Bar Sundries 72,000 Loan Interest 48,500 Miscellaneous 81,500 2,
25、457,000 Increase in Bank 751,500 Bank Balance 1 January 2002 533,500 Bank Balance 31 December 2002 1,285,000 Additional Information: (1)Balances on 31 December 2002 Bar Stock 197,000 Bar Debtors 25,000 Bar Creditors 150,500 Music Ground Rent Prepaid 8,000 Electricity Owing 17,500 Subscriptions-In Ar
26、rear 9,500 Subscriptions-in Advance 30,000 Rates Prepaid 38,000 (2)Included in subscriptions in arrears on 31 December 2002 is 2,500, which has been outstanding for 5 years, and the management committee wish to write off as a bad debt. (3)Depreciation is to be provided at the following rates: Clubho
27、use 5% by reducing balance method Music Equipment 5% by straight line method (4)Incorrectly included in repairs to equipment was 100,000 for the purchase of a full set of weight training equipment which was installed in the club house in January 2002, and which has an estimated life of 10 years. Req
28、uired: Prepare the Clubs Income and Expenditure Account for the year ended 31 December 2002. Question 8 22 May Trading Co. Ltd. has following figures at 31 December Year 1 Fixed assets 1,300,000 Provision for depreciation 350,000 Stock 450,000 Debtors(net) 142,500 Bank 250,000 Creditors 240,000 Accr
29、ued expenses 65,000 Share capital( 10 par) 1,600,000 Profit and loss account 467,350 As the accountant of May Trading Co. Ltd., you are required to prepare its master budgets for the 6 months from 1 January Year 2 to 30 June Year 2. You have the following information available: Sales Purchase Wages
30、Overheads excluding depreciation (Units) Oct Year 1 (Actual) 25,000 130,000 90,000 70,000 Nov Year 1 (Actual) 27,000 150,000 90,000 70,000 Dec Year 1 (Estimated) 33,000 170,000 90,000 90,000 Jan Year 2 (Estimated) 30,000 170,000 90,000 70,000 Feb Year 2 (Estimated) 35,000 180,000 100,000 90,000 Mar
31、Year 2 (Estimated) 36,000 200,000 110,000 90,000 Apr Year 2 (Estimated) 34,000 190,000 110,000 90,000 May Year 2 (Estimated) 33,000 190,000 110,000 80,000 Jun Year 2 (Estimated) 37,000 160,000 120,000 80,000 Additional Information: 1. The selling price in October Year 1 was 9 per unit and this will
32、be increased to 10 in February Year 2. 2. 30% of sales are on cash basis, credit sales are to be settled one month after the sales. It is expected that 5% of credit sales are uncollectible. 3. Purchases are to be paid for two months after purchases. 4. Wages and overheads are to be paid equally in t
33、he month incurred and the following months. 5. A machine will be purchased on 1 January Year 2 at a cost of 240,000. 6. The depreciation policy on fixed assets is 10% p.a. on cost on those owned at the end of the budget period. 7. The stock level at 30 June Year is estimated to be two months purchas
34、es in the past. 8. The company plans to raise money from the stock market by issuing 50,000 preference shares at 5 per share in March Year 2. 9. Accrued expenses are to be settled in one month. Required: (a)Prepare a Budgeted Profit & Loss Account for the 6 months period ended 30 June Year 2. (b)Pre
35、pare a Cash Budgeted for the 6 months period ended 30 June Year 2. Question 9 23 A & D Ltd. provides you with the following information for the two years ended 31 December years 2002 and 2003. Balance Sheet ended at 31 December 2002 2003 000 000 Plant and machinery 1,346 1,838 Less: Depreciation (22
36、4) (337) Stock 234 346 Trade debtors 432 540 Bank and cash 60 414 Trade creditors (192) (216) Accrued expenses (20) Taxation (80) (90) Dividends (45) (60) 1,511 2,435 Less: 7% Debentures (350) (1,000) 1,161 1,435 Paid-up share capital 900 1,000 Share premium 100 Revenue reserves 85 120 Profit and lo
37、ss 176 215 1,161 1,435 Trading and Profit and Loss Account 2002 2003 000 000 Turnover 2,775 3,254 Less: Cost of sales (1,816) (2,245) Gross profit 959 1,009 Less: Operating expenses (763) (765) Profit before taxation 196 244 Less: taxation (80) (90) Profit after taxation 116 154 Less: transfer to re
38、serves (20) (35) proposed dividends (45) (80) Retained earnings for the year 51 39 Additional information: Plant and machinery with a cost of 62,000 and a written-down value of 24,800 was sold for 12,000. Required: (a)Briefly state the purposes of preparing a cash flow statement. (b)Prepare a cash f
39、low statement for A & D Ltd. for the year ended 31 December 2003 in the format as prescribed by HKSSAP15: Cash Flow Statement. （原）金融专业英语（ FECT）中级会计模拟试卷 3答案与解析 Question 1 1 【正确答案】 A 2 【正确答案】 A 3 【正确答案】 B 【试题解析】 A foremans salary is an indirect cost with respect to the departments individual products.
40、 4 【正确答案】 B 【试题解析】 When factory has spare capacity, the fixed costs are irrelevant in respect to the additional order. 5 【正确答案】 B 【试题解析】 In order to lower breakeven point in unit, business should decrease its fixed costs. 6 【正确答案】 B 【试题解析】 When the percentage of debtors method is used, the estimated
41、 bad debt expenses should be adjusted by the existing balance of doubtful debt provision. Question 2 7 【正确答案】 C 8 【正确答案】 D 9 【正确答案】 C 10 【正确答案】 D 11 【正确答案】 B 12 【正确答案】 C 13 【正确答案】 B 14 【正确答案】 C 15 【正确答案】 C 16 【正确答案】 A Question 3 17 【正确答案】 (a) The reported income before taxes for the year 2000 should
42、 be: 138,000- 23,000= 115,000 The reported income before taxes for the year 2000 should be: 254,000+ 23,000+ 61,000= 338,000 The reported income before taxes for the year 2000 should be: 168,000+ 17,000- 61,000= 124,000 (b) It will not influence the 2002 years report income before taxes. Question 4
43、18 【正确答案】 (a)The overhead absorption rates are determined as follows: Variable overhead rate = Variable production costs / Direct labour costs = 78,000 / 100,000 = 78% Fixed rate overhead = Fixed production costs / Direct labour costs = 90,000 / 100,000 = 90% Total rate = 78% + 90% = 168% (b)Margina
44、l cost for unit of component W: Raw material 10 Direct labour 8 Variable overhead ( 878%) 6.24 24.24 The outside suppliers quotation of 21 is lower as compared with the variable cost of making component W. Thus, buying component W from outside would save 3.24 per unit and is recommended. Question 5
45、19 【正确答案】 (a)Prudence concept The change inventory method in the time of price rising consists with the prudence concept which states that an accountant will take the figure which will understate rather than overstate the profit. (i)net profit margin understated (ii)return on capital employed unders
46、tated (iii)current ratio understated (iv)quick (acid test) ratio no impact (b)Matching Concept The matching concept states that, expenses should be recognized in the accounting period in which it is incurred in earning revenues. Such expenditure must be periodically recognized when it actually makes
47、 its contribution to revenue. (i)net profit margin understated (ii)return on capital employed understated (iii)current ratio understated (iv)quick (acid test) ratio understated Question 6 20 【正确答案】 (a) Annual depreciation expense = ( 200,000 - 20,000)/5=36,000 Annual depreciation expense for each ye
48、ar equals with each other. (b) Double-declining-balance rate = Straight-line rate2 = 40% depreciation expense for year 2003 = 200,00040% = 80,000 depreciation expense for year 2004 = 120,00040% = 48,000 depreciation expense for year 2005 = 72,00040% = 28,800 depreciation expense for year 2006 = 43,2
49、0040% = 17,280 depreciation expense for year 2007 = 25,920 - 20,000 = 5,920 (c) Sum of the years digits = 1+2+3+4+5= 15 depreciation expense for year 2003 = ( 200,000- 20,000)5/15 = 60,000 depreciation expense for year 2004 = ( 200,000- 20,000)4/15 = 48,000 depreciation expense for year 2005 = ( 200,000- 20,000)3/15 = 36,000 depreciation expense for year 2006 = ( 200,000-
