Started on Thursday, 12 March 2020, 9:48 PM

State Finished
Completed on Thursday, 12 March 2020, 9:59 PM
Time taken 10 mins 52 secs
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Question 1
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Short-term employee benefits are defined in AASB 119 as: 

Select one:
a. all payments made to an employee within 12 months of the date the employee
rendered the service
b. the undiscounted value of wages, salaries and social security contributions to
which the employer is presently obliged
c. benefits that are paid to employees while they are employed by the company
making the payment

d. employee benefits that are wholly due within 12 months after the end of the
period in which the employee rendered the related service 

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The correct answer is: employee benefits that are wholly due within 12 months
after the end of the period in which the employee rendered the related service

Question 2
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Junior Ltd employs three workers to develop and test games. The employees are
currently earning $30 000 each and are expected to cease their employment in 20
years. At the end of their employment each employee is entitled to a lump sum
payment equal to 10% of their final salary. Actuarial analysis suggests salaries will
increase evenly at a rate of 5% per year over the 20 years. At the end of the 20
years Junior's undiscounted obligation is $477 593. Assuming an interest rate of
8%, calculate the obligation that would be recorded at the end of year 1 (rounded
to the nearest dollar). 

Select one:
a. $102 466
b. $5123 
c. $21 986

d. $23 898

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The correct answer is: $5123

Question 3
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The amount represented as a current liability, 'Provision for long-service leave'

generally represents

Select one:
a. the amount to be expensed as long-service leave expense in the next 12 months
b. the amount of long-service that has been provided for, for all employees of the
entity
c. the amount of long-service leave remaining to be taken by staff

d. the amount of long-service leave that is expected to be taken in the 12 months

following the balance date 

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The correct answer is: the amount of long-service leave that is expected to be
taken in the 12 months following the balance date

Question 4
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When salaries and wages are capitalised as part of the costs of an asset, such as
inventory

Select one:
a. an expense is recognised as part of the cost of the inventory
b. an expense will be recognised only when the employee takes leave.

c. an expense is finally recognised in the form of 'cost of goods sold' 

d. an expense will never be recognised for the salaries and wages

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The correct answer is: an expense is finally recognised in the form of 'cost of goods
sold'

Question 5
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A defined contribution superannuation plan is one in which: 

Select one:
a. the contributions are defined by the amount needed to pay out benefits to the
members at a specified level on retirement
b. the benefits paid out by the plan depend on the contributions made to the plan
and the earnings of that plan 
c. the contributions to the plan are only paid out to members on retirement

d. the benefits paid out by the plan are based on the average salary of an
employee over a period of years as a reflection of the employee's contribution to
the employer

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The correct answer is: the benefits paid out by the plan depend on the contributions
made to the plan and the earnings of that plan

Question 6
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The following journal entry shows:

Dr Provision for long service leave $ 2540
Cr cash $2540

Select one:
a. An (some) employee(s) may have been paid out their long-service leave
entitlement upon resignation
b. An employer is building up a provision account for long-service leave to enable it
to account for leave taken in the future
c. An (some) employee(s) may have taken long-service leave and an (some)
employee(s) may have been paid out their long-service leave entitlement upon
resignation 

d. An (some) employee(s) may have taken long-service leave

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The correct answer is: An (some) employee(s) may have taken long-service leave
and an (some) employee(s) may have been paid out their long-service leave
entitlement upon resignation

Question 7
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Employee benefits include:

Select one:
a. superannuation, wages and salaries, sick leave and annual leave 
b. wages and salaries, sick leave, payroll tax, annual leave
c. annual leave, wages and salaries, post-employment benefits, payroll tax

d. sick leave, annual leave, unemployment benefits, salaries and wages

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The correct answer is: superannuation, wages and salaries, sick leave and annual
leave

Question 8
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Junior Ltd employs three workers to develop and test games. The employees are
currently earning $30 000 each and are expected to cease their employment in 20
years. At the end of their employment each employee is entitled to a lump sum
payment equal to 10% of their final salary. Actuarial analysis suggests salaries will
increase evenly at a rate of 5% per year over the 20 years. In 5 years' time, what
total benefit will the three employees have accrued (rounded to the nearest dollar)?

Select one:
a. $165 000

b. $114 865
c. $119 399 

d. $23 899

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The correct answer is: $119 399

Question 9
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An employee whose contract for service includes an entitlement to 1 week's

cumulative sick leave per annum will be entitled to how many weeks' sick leave
after 3 years' employment if no sick leave has been taken? 

Select one:
a. Either 1 or 3 weeks depending on long-service leave entitlements
b. Between 1 and 3 weeks depending on annual leave entitlements
c. Three weeks 
d. One week

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The correct answer is: Three weeks

Question 10
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nine weeksAn employee whose contract for service includes an entitlement to 2

weeks' non-cumulative, vesting sick leave tenders his/her resignation to take effect
exactly halfway through their fifth year of employment. What is the employee's sick
leave entitlement, in weeks, that will be paid out on his/her departure assuming
that no sick leave has been used? 

Select one:
a. one week 
b. ten weeks

c. nine weeks

d. zero

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The correct answer is: one week