2021DSE BAFS PAPER 1 MC 21.1 DU FRAPS LR WTOODRRR PML REMY (17%) (1) Itenforces the rules of intemational trade among members. SRST RAS IER SR © (2) Ithelps developing countries increase their trading opportunities. HU PRAA AS (3) Iteliminates trade barriers among members. SEAR EP BY 5 BE? A.(only B.(1)and(2)only —C.(2)and(3) only D. (1) (2) and (3) Note:WTO sai ey ZFS AM + (LASER PLES a TRE» 21.2 Product departmentalisation means EAD OPA (30%) A. different departments serve customers of different countries AAP FRE PES B. different product lines are developed for different markets SSATP T PINE co C. workers are divided according to the stage of production eB TA D. the production, marketing and other related tasks of a product are grouped under a manager BESRAAERE + SALA Ae Note:)i a chiy (ese Puls > PIAA ACTS » REALE TABPS « ESS AEE 21.3 At the end of the year, the bookkeeper of a retail store balanced off the accounts, listed the account balances and prepared a trial balance. Which of the following accounting functions did the bookkeeper perform? EI RE SIAC PT ORAL > SIH TORE BRA HT CARERS © BT Sime Bs TDIBE ? Axecording 329% Boclassifying 47 C summarizing 24% D.communicating #3 Not AEG T AGAR Bi A/HEBE 4 « 2022 46 1A 31 Ape Fake + SERRE GR Mock Exam aap Z4F AGRAM Giveaway jib) » DSE NUH!21.4 Katie is considering investing in a 3-year project with the following details: Cash inflows(outflows) #z3i¢ A Chet) s Beginning of Year 1 (70 000) Beginning of Year 2 25 000 Beginning of Year 3 35 000 ‘The serap value atthe end ofthe project is $20 000. The discount rate is §% pa annurn. What isthe ‘net present value of the project? ZRH RUSS 20 000 WARE RALET Stee « ROHAN D RIES 2 A.-$14445 B.$187 C.$2832 D. $3520 Note: -70 000 + 25 000/r*2 + 35 000/r*2 + 20 000/r43 ¥=(1.05) 21.5. Which of the following is not a benefit of delegation?) FI) —THRSS NRHA IE? A. increases subordinates’ job satisfaction Er PAUL PEE B. improves the relationship between superior and subordinates BCS LARA PAR MIO AS C. provides training opportunities for subordinates Ay Fea eT D. allows superiors to focus on important tasks ft ESE i EDS Note: |-ajiken> RRL (F ARATE LAAT FAR TR 21.6, On | February 2021, Ms Law set up a retail firm selling computers. On the same day, the firm purchased ten sets ofcomputers on credit froma supplier at acost of $4 $00 cach. During February, rma sets of damaged computers were returned tothe supplier and three sets of computers were sold ata selling price of $7 000 each, Fees 2021 FF 2 1 ERAT HEAR AA SA EIR ANNES ASO0 BOERS HEAR YA CE ATOM T 10 GS HEE <2 AlD > SRE AHLARIWYa Spa HRMERRE + MRLARSEES 7 000 TEATS ENT Saat EEA ‘What is the balance of the purchases account of the firm as at 28 February 2021? WH 2021 42 A 28 A ATRIA a2)? $22 500 $31 500 $36 000 $45/600 Note: $4500 * 10 = 45 000 - Credit purchases $45 000 OBR 2022 46 1 A 31 Ant bake + ee: f Mock Exam aap Z4F AGRAM Giveaway jib) » DSE NUH!21.7 Which of the following is/are legal factor(s) affecting the operations of a restaurant in UK? Jk PUES eB ESE UEP RP (1) There is an increase in the minimum wage rate. MRL AEST (2) The number of people participating in group gatherings in any public places is restricted because of the spread of Non-local pneumonia. SARAHB SCTE + PRT APE 2S SD SM YAR (3) There is a decrease in the Consumer Price Index. epee arte BCT « A()oaly B.Q)only CG) only — BiCihiaaR Vat 21.8. Which of the following is a benefit brought about by the respective principle of effective management? 7475S (CAPA PFE 2 Principle Benefit ‘A. balancing authority and responsibility | improve communication between employees SPBit PRO LE eee B. division of work reduce production delays ax webaamey C. unity of command Jess confusions in work HS LIF RAL D, management by objectives Beret seduce administrative work, ROTEL 21.9. The following is a list ofall account balances of LAW’s fim as at 31 December 2022 Accounts receivables ua A s Bank overdraft REL 55.000 Inventory aA 2500 Loan to Ms Cowball SAO A 21 200 Cash Hig A 18 000 ‘Accounts payables AINA L 23 000 Equipment aA A 42 300 Capital ae 424 000 ‘What is the balance of the capital account as at 31 December 20227 #835 2022 A 12 FA 31» BEARERS > 2 A.$157 400 B.$162 400 G1$193/400 D.$198 400 Note:A=C+L 2022 46 1 A 31 Ant bake + ee: f Mock Exam aap Z4F AGRAM Giveaway jib) » DSE NUH!21.10. Which of the following is a difference between a bank over-draft and a Personal loan ? DL SOE TAR SEAL SEK POE Personal loan A interest rate FE higher D. monthly minimum payment SF fief (Se8A yes Note: TAX AMAA ARES (SEPRRTECR) 21.11. Which of the following will reduce the gross profit of a firm? DA PORE GY SSE A? (1) drawing of goods 2% (2) increase in carriage inwards REGGE LF (3) increase in electricity expenses 2%) A. (1) only BERGUBBIGEC. (3) only D. (1) and (2) only Note: -{i| Gross Profit = Sales - COGS Se Pee EF COGS Ft > 21.12. Which of the following are the characteristics of a public corporation? ERICA, FORO (1) The government participates in its daily. operations. BOR SRE A i aE (2) The chairperson of the board of directors is appointed by the government. aS EB eth, (3) It is a separate legal entity. ‘ARIA ARS A. (1) and (2) only B. (1) and (3) only GHVRHANBHGBI D. (1), (2) and (3) Noterifi Edina 8 @ GS» HBTS TE « 2022 46 1 A 31 AHH GREE + SABE SR Mock Exam aSZEF AGRAM Giveaway ii) » DSE yi!21.13. Which of the following statements about a trial balance is/are correct? PRR AR RIEL PBI EGET? (1) Ifthe trial balance agrees, there are no errors in the account balances. SOR EO TT > HID PARA He Bak (2) The trial balance shows all the account balances of a firm. SAFER AUER A BIT ATI (3) Ifthe total of the debit side of an account is smaller than the eredit side, the account balance is shown in the credit column of a trial balance. SOR PB Ta BR ie BEET + HIRT a OS A. (1) only B. (2) only C. (1) and (3) only DIGIRSEIGSAIS Note: A270 STD, metal R eth ri TA Aa 21.14. Which of the following will have an adverse impact on the credit rating of a person? LAB OSE SS BLAS fas FS SESE (1) A person has a bankruptcy record ABA BER (2) A person failed to meet the foan repayment schedule before ABA AR RE TEE OSH ET TK ()A person has been unemployed for more than 1 year. BA RE ‘SORRAHOALY B. (1) and (3) only @342) and (only D. (1) ,(2)and (3) Note: RFORP RSNSR FM RURAL HAR ECA ihe RTA A REIT AS EAR © 21.15. Which of the following about the statement of financial position is/are correct? WASTER » DU SUDERLIEMENI (22%) (1) Trreveals the liquidity of a firm. ‘RTT (SPORE (2) Non-current assets are listed according to their total amounts in descending order. ITED PUREE ESTE ES (3) It reveals the financial status of a firm for a period of time FATE EAT RL, ‘AOGHIGAIY B. (2) only C. (1) and (3) only D. (2) and (3) only Note: HARA PEEVE SEPM AMUELEA + EDM OHELE A DURETE UMAU AAR SASL ARE» 12 31 Gy ASB emai AUT HER AFA EAC ASEAN > AE 12 A 31 AS ARR « 2022 46 1 A 31 AHH GREE + SABE SR Mock Exam aSZEF AGRAM Giveaway ii) » DSE yi!21.16. Which ofthe following firms are fulfilling their social responsibility towards stakeholders during the spread of Non-local pneumonia? “eee AS SABE» DLP RMS SLE CE TN HT BEE? (J)An interior design company which allows its employees to work from home. RMA TART (PEA (Q)A restaurant which offers discounts to dine-in customers. 1 HE A (3)A publisher which allows the public to read its books online free of charge. Feat RAE RE TN A.C) and (2) only BDRRGIGHIGAIY C. (2) and (3) only D. (1), (2) and (3) Notes (yi fea ee GUT I0Hy MILI UE © 21.17.A newly-established electric car manufacturer sets the following target: SR aE TL BR ‘We shall become the leader in the eleetrie car market next year.’ GELAWIRS ED EE BSLLE ‘Which of the following criteria for good objectives is/are fulfilled in the target? EL aR DL Papa BF ARE 2 (1) specific Rit (2) timesbound Ai FfMIPEL| (3) measurable ] Hat A. (1) only BNGVBAY ©. (3) only D. (and (2) only 21.18. On 31 December 2021, Katie Company decided to close the business three months later. On that date, its non-current assets were recorded at $3 800 000 and its liquidation ‘ale was $2 098 000. 2021 # 12 A 30 A + BUPA Ae: $3 800 000 » FH FU{HIE %52 098 000 « According to the . the value of the non-cument assets shown in the statement of ALARA ARES « AEE financial postion of Katie Company as at 31 December 2021 should be ft SSS > ARS SOA BRAILES 2001 AE 12. FS 31 LAO MEMO SRI = ‘A. going concem assumption }¥SHSH68MYF282...... $2098.00 B. going concem assumption ff2@/WehAy PLE... $3 800 000 C. historical cost concept RES ACARE... ... $2,098 000 D. historical cost concept HESEHRATES ... $3 800 000 Note: GLEE A582 098 000 » AHIR FEEEM » L1S2 098 000 st Fi» 202246 1A 31 AH LORE» BB f: Mock Exam aSZEF AGRAM Giveaway ii) » DSE yi!21.19.What is the main reason for a business to compile a code of ethics? eR TUNE SE A. This is required by law. TE RSORAY B. This could reduce the cost of production. 38 P20] AWEEA: AERA C. This could improve the firm’s image and maximise its profit. SOTA IRAE TORT ‘D. This provides niles and standards for employees. SATIRE NEUTER 21.20.Which of the following statements about the Mandatory Provident Fund (MPF) System isfare conrect? “FABERGE oP) Ae PETER (1) Employees can make voluntary contributions in addition to mandatory contributions to the [MPP scheme, (PSOE: SRMIREORA + UPL Emi, (2) Ms Law is a 68-year-old taxi driver with a monthly income of $10 000, She is required to contribute $500 each month to the MPF scheme. SBA: 98 68 iO -FTHM + 15 A.1S1O 000 - Hermite Hie 500 FE: (3) Ms Law is a self-employed hawker who earned a net income of $120,000 last year. She was required to contribute S6 000 to the MPF scheme: SRS IEE » 2 FFFUIAINS120 000+ ARE Rv at BIMLASE 000 ‘AOGUGAIY B. (1) and (2) only C. (1) and () onlyD. (2)and(3) only Note: 2.68 BREE BOR, Sie + TAR AGE MPF « 3.Hawker /| iif DSE Wate A253 MPF ARSE SEAR See LAS SYNE RUA. Fir DEAE ES El — 1c © 21.21.Which of the following statements about small and medium enterprises (SMEs) in Hong Kong is correct? (\/Sahit8s I (3% » LL FUpEBRSIC TENET? ‘A. The scale of an SME is so small that it cannot practise division of work. Chr) SRILA» DLR ETT. B. The owners enjoy limited liability. ESA ARSE C. Most of them are engaged in secondary industries, MAMAS RES — ESE D. Enterprises in the non-manufacturing sector with fewer than 50 employees are SMEs. RIERA IRATE 50 NERA 2022 46 1 A 31 AHH GREE + SABE SR Mock Exam aSZEF AGRAM Giveaway ii) » DSE yi!21.22 Information about Katie and Cowball for the year ended 31 December 2021 is, Katie wa — | Cowball 47, Sales fH fit 8 800 15 000 Cost of goods sold #)FNR75 (2400 2600 Operating expenses 42521 2.800 9800 Based on the information above, which of the following statements is correct? A. Cowball had a lower gross profit. LAS 2AUBEE B. Cowball had a higher retum on capital employed. “=k, (H AH ADEE C. Cowball had better control over operating expenses. 4-3 WAEHIES HT 2/1 Diowiall naa IowERRCEPIONIERAT AU Feet Note: 3$ij Net Profit = [Sales - COGS] — Other operating expense + Other revenue 21.23, Which of the following statements about debentures are correct? “FST PS NSE ETE BR? (1) Investors with lower risk tolerance level usually prefer investing in debentures to stocks. RBA SE I HT SS GS TT (2) Debenture holders will receive higher interestif the market interest rate increases. COREA FF RPA EFS. (3) Repayment of principal is made to debenture holders on the maturity dare. {EWA PTAA ARS A. (1) and (2) only BOMUDNAHASVRBLY C. (2) and (3) only D. (1) , (2) and (3) Notes) pink * RHROR EEE ALS ° 21.24. Which of the following is/are benefit(s) to Hong Kong brought about by globalization ? SEER LBs ET ARP a a? (1) easier to recruit experts fiom overseas, WL SUtEF/ NABER (2) cheaper supplies of materials #2(BACUHERE (3) reduce competition among fis 3“) 38> IIE A.() only B. 2) only C. (3) only DRO RREONCAY CARMI RIZED + ARRAS) AR EEF ° 2022 46 1 A 31 AHH GREE + SABE SR Mock Exam aSZEF AGRAM Giveaway ii) » DSE yi!21.25 The production manager of a factory decided to produce 1 000 units of products by the end of 2021. She has arranged the production schedule and deployed me necessary resources and manpower. ‘Which step in the planning process will be undertone next? TR EA 2001 SEE A AE 1000 Hin eah « ALORA TEMES T SE] + MENS BET RENAL ATI «StI OE ob 2 A. evaluate alternatives Sf (CG B. formulate the action plan fi) (7HH2t# D. set the goal 282 F118 21.26 Which of the following double entries is/are correct? “F SSP(A ME taRDRETEREA? ‘Transaction Account to be debited | Account tobe credited (1) Purchased a motor van by cheque from ‘Motor vans Katie Company Katie Company ete Be] (2) Received commission by cheque from Ms Bank ‘Commission income Law GER SRT RS aT se, (3) The owner paid the rental expenses of the | Rental expenses Capital firm with his personal cheque ‘He BA A.())only B. 2) only GIMSVRBREBYSHIS D. (1) (2) and (3) Note:1.Credit Bank #5 21.27. Katie has just retired. She wants to invest his provident fund to earn a stable income. Which of the following financial instruments is most suitable to her? SUP MIBDE I « MBIA RS LUGAR ANCA + FSGS ATR atk 2 A. constituent stocks of the Hang Seng Index {2/5 8iUO}H2 B. stocks listed on GEM 7@ (1/304 ErhiyHOSS D. savings deposits (AFH Note: iP REUaIK + MAAR RAS» 2022 46 1 A 31 AHH GREE + SABE SR Mock Exam aSZEF AGRAM Giveaway ii) » DSE yi!21.28. A Korean frozen food compaiy plans to establish a branch in Hong Kong. Which of the following is/are the support provided by the company’s information manager to the marketing manager ? (28%) RRL HERE AS St SEE GARRET ZS © PURDUE LS] SH STE BY SHG? (1) process data about the frozen food market in Hong Kong AMS A tae (2) collect information about suppliers of freezing systems RABI RUS FERS EL (3) set up a salary scheme for the salespersons BER BBL MST el ‘AMGHUGAIY B. (1) and (2) only C. (2) and (3) only D. (1) , 2) and (3) Note:2./% Operation » 3.3 HR 21.29, Which of the following is an example ofa real account? LARUE a: ee RAS EN ‘A. purchases account (i248 EI C. discounts allowed account WeHiMi7Pi0H 5 D. electricity expenses account 22H] 21.30. Assuming the interest on an investment project is compounded semi-annually, which of the following statements about its nominal rate of return and effective rate of retum are correct? CAO ANTAL ER ABEL FASB Se Se FR Maa PT AERA? (2) The effective rate of retum of the project is higher than its nominal rate of renurn. JEEPERS all (2) The effective rate of return of the project will be higher if ts interest is compounded quarterly instead. SORE ARPES + MCR (3) The effective rate of retum of the project will be lower if the investment amount is lower. Hei)» ERT RR iF SQA 8. (1) and 3) only C. 2) and (3) only D.C), Qyand @) Note: "i237 Hit) » 1H A Aver 202246 1A 31 AH LORE» BB f: Mock Exam aSZEF AGRAM Giveaway ii) » DSE yi!