What Would the advantage(tWEfit)Of follows revenue

4. Wallxe company
having all countriesadoptand followthe recognition'Minciplc.The invoiceon
sameaccountingstandards? vicesa and rreraresthe
customercollee:tsthecaron
M arch. The Wallace
(A) Consistency I andmails the paymentto
Auto Repairson 5 April. 11te
what
(C) Absorbedpreparation
costs receives cl*que on 6 April. On
(D) recognize
Repairs
or extemalauditing dateshouIdWallaceMO
reventr?
2. M AJOR impact Ofcomputerizationon March
xcountil* is I April
(C) 5 April
(A) (D)
(B) access
(C)
(D) ernployment Internalcontrolsareusedin a businessto
(A) correctfinancial ntS
3. on 22 2020.DOGLtdacquiredthe anddeteremployeedishonesty
businessOfSingerInc.forcashat a price establish and conduct
of S14 000. Thebookvalue the
at the time Ofthe transaction per
was S11000000. tnd"ndent appraisers reliability
Singer's at a fairmarket of the business• accounting
What amount should recordsand sueventfraud
DBG in tlE account? safeguardthe business• assets
and enhancethe accurXYMid
reliability of accounting
(B) s 200000
st sooocxj
(D) S3 500000 6. Ofthe fundamental
Whichrepresentation
eptim is INCORRECT
Assets — Liabilities
Equity
Liabilities Assets Own«s•
Equity
Owners• Equity Liabilities •

(D) Assets —Owners' Equity

Liabilities
7, Which Ofthc following reserves is available I!gm2 refersto folktwitvstatement.
cash div kletuls?
"One limitation Offinancialinformation
Sinkingfund is ux of estimates
in financial
(B)
General
(D) 9. Whkh Oftir tOllowingshow or
suchestimates?

8. "iciple that Machineryis to be depreciatedby

20% On its cost_
(A) involving ætS are Corprationtaxis to
recordedat acquisitioncost income.
shouldhe recordedinitially Ill. Allowancefor&xabtfuldebt
at cost and then as the be 5%ofOctsales.
marketvaluechanges
(C) "ivate activitiesof the (A) and Il only
Of a business should not be land only
into the activities (C) Il and only
busitwss (D)
only transactions 'hat are capable
of exvessedin
shouldbe itxluded in the From pointofviewof shareholders,
the
accountingrecords M AIN duty or the external auditor is to

(A) adhere to generally geeepted

auditingstan€hrds
(B) plan performthe audit using
statist techniques
opinionon reliability
of the linancinlstatements
i in
auditof financialstatements
A trial tolance'bows
Supplies
at the endOftheperiod. Supplks of suppliesis on
SO.IfSSOO
theadjusting"gry is

s 3000

(C) S.lies
Supplies

Supplies
revem.e S 5m

WhichOfthe followingactivitiesrelateto In July 2016. a contFY its

employeesa bonusof2%of its 2016v Jes
as a result of increased prodiRtioo.
Exp-esses opinin to was January 2017.
entered as an ex[M ise on that day. Which
Conductsaudits or
and management
Works Iyoremployees
is (B) M atching principle
(C) Full
(A) andIl (D) Going principle
(B) and Ill only
(C) Il and only
and 15. Two-thirdsor an insurance has
expired. wasacquiredat a
OfSS700. '1%cadjustingentryto record
MemoInc.a WithannualSaks
OfS25000 (m, haspurchased a
software for S' 'O. This softwareis cte•EtofS I
exi*ctedto forthe years. debit ins.rancc
Theaccountantof MemoIncrecordedthe
*'Rware exßnse. Which (D)
usedtojustify this treatment?

(A) concern
(B) Historicalcost
MNeriaIity
(D)
Which Ofthe following associatedWitha
Externally regulated
Investments not refunded
111. OwnershipCannot transferred

(A) andIl only

land Ill only
(C) Il andIll Only
(D)

refersto the followinginformation'Boutthe tulaneeon an rcount at OI January2020.

Share Capital Share Premium RetainedEarnings

s s
Balanceat I Jan 2020 25 000
ny theendof 2020,$25 000 worthof sharesWereissuedat a premiumOf 000; vrofitsfor the
yearwere$61 800 anddividendsof SAO 000 were Whatwere balanceson thenccmtntS
at 3 1 December2020?
ShareCapital Share Premium Retained Earnings

25000 0 188697
50 000 50 000 220 "97
50 000 80 220 497
(D) 50 000 80 250 497
 000. Tliecontpally's
Sce•oll 2020wouIdbcS5
mc•nhers. For the ycar
a restaurant lts is 42 per cent.
just ended,the tax ratefor the Yeal' tax paymCnts
quarterly
followingdata
Werereported. company made
Julie, 30 Septemberand
on 30 April, 30 actual income for
Dccclnbcr. 2020 Was
l] c ginning
ba lance of inventory the year 31 Dccember
Ending balanceor inventory
2 080 0f tax
2345 SS 700 000. The antount
2020 was
Pa id lo Creditors Dcccnlbcr
ror inventory 38 620 payahleat 31
to creditors
0
(B) R4000
The COSt
0f goodssold ror theyearwas (C) SI 00000
(A) $38 355
$38 620
(C)
(D)
280 totbc followinginformation
$39 about a partnership.

Will Smith, a ncw partner. is

At theendof December
Emtle
2020.Emilyand to the Labelland Rosspartnershipunder
partnerswith capitalbalances thebonusmethod.Smithcontributcscash
of S200 000 and $120000 respectivcly
shan profitand lossesin the ratio Of$20 000 and equipmentwith a market
or 2:1. In January2020.Kakun'invcsls valueof SAO in exchangefora 20%
owncrshipinterest. capital0f the Old
SICO000 for interestin the parlnerslipis SI30 Labell and Ross
new partnership.The partnersagteethat shared profils and losscs in the ratio 80:20
goodwillWillbe recordedon the date of
respectively.
admissionof Kaklnn.'11etotalgoodwill
aftertheadmissionof Kakumis

(A) (A) $30 000

(B) s 90 ooo $351100
(C) $120 (C) 000
(D) $200000 sso 000
 refersto the followinginfonnation 24. A statutorycorporationis ownedby
pertaining to the accountsOfJym Boys
Spons Club. balancesshownareat (A) all nationalsof state
31 Dece,nbcr2018. (D) individualsor smallgroups
(C) the governmenton behalfof all
Cashin hand nationals
$3 600 600 (D) members o the public Who
purchase shares

Subscription S 900 Bar stocks sq 200

prepaid refers to the following information.
Subscription On December
Ming equipment costS60000hadaccumulateddepreciation
On 7,apiece
Theclub'saccumulatedtundon OI January Ofequipmentwas sold for$6 000;the net
2019 wi l l be book valueor equipmentbeforethe sale
was$8 000.

S16 400 The companyuses the reducingbalance

400 methodfor assetdepreciationat a rateof
(D) $ 9200 per annum.

25. The net hook value Of the equipment

refersto the followinginformation BEFORE occurred on 31 December
about Jack'sLtd. 2017 was

The partially completed Statement of (A) $26 680

ComprehensiveIncomeor Jack'sLtd Cor S27 880
the year ended 31 December2016showed $34 680
followingdata. 800

26. A partner'sability to bind the partnership

Selli anddistributionex 140000
and all the other partnersinto a contract
Net sales 460 000 when acting Withinthe scopeofthe business
Admi ni s tra ti ve ex 80 000 is anexampleof
revenues 45 000
s sold 120000 (A) Inulual agency
cost of limited liability
Interestexpense 60 000
(C) unlimited liability
(D) transferOfparlnershipinterest
If a corporationtax rate of 30%is applied,
net for the Will

S 65000
S 73 500
S 85 500
$105 ooo
 been from
An discoveredthat of ihe valueof a fixedassetshad the directors.
hy
The
accountant should

(A) recordthis as a liability

(B) adjustthe bookvalue Offixed
(C) ignorethis discoveryuntilthe ii'llowvngyear
(D) recordthis in the to the statements

Sloners.
refers to the following whichrelatesto the businessor Sand

Net 01 January2016 260 000

Capital introducedduringthe year 52
Drawingsby the owner 25 000
Net at 31 December 2016 318000
28. WhatWasthe eamed in 20167

(B) S27000

29. WhichOffhefollowing is NOT tothefollowinginK•rmation.

true regarding ordinary shares or Ice
shares? On I January.a convany•s outstanding
share capital co.npriscd 160000 three-do Ilar
All companies issue ordinary Ordinary shares.
shares.
(B) Ordinary'sharesare basic InAugust,the companyissuednew slures
and commontypeOfshares. at 'M r. issue the company
(C) With shares, amount capitaltotalWasSI 005 000.
ofdividend is gcncrany
and inc.-cases
everyyear. 30. The Of sharesigued in
Withpreferenceshatcs, bokJers Augustwas
have priority over ordinary
shareholdersin dividend and 145
distribution. 155
165000
(D) 175000
31. WhichOfthefollowingStatementsare true 34, Which element or published financial
reganlinginformationprovidedby statementsattemptsto pmvide ion
reporting? on a company'ssocialresponsibility?

It increases of the The auditor's report

company. (B) Thedirector'sreport
It is usefulfor makinginvestment Thestockmarketrepott
and creditdecisions. (D) Notesto the financialstatements
It identifics What is owned, what is
owedandthe ownershipinterest
in the company. In preparinga statementof cash flmvs,
whichofthe follmvingtransactionswould
(A) J and Il only be consideredan investingactivity?
(B) I and Ill only
(C) Il and Ill only (A) IssuanceOfa notepayable
J, and (B) Saleof merchandiseon credit
Declarationor a cashdividend
(D) Saleof equipmentat bookvalue
32. Liquidity is determinedby the useof the

(A) acid-testratio 36. On 31 December2020, RubyJewelsInc.

(B) debt-to-equityratio was sued by an employeefor wrongful
(C) eamingspcr shareratio dismissal. Thecompanywasadvisedthat
(D) investmentturnoverratio the claimwas95% likely to succeedand
that damages off I '10 ODOwould be payable
if the claim succeeded.How should the
33. In preparationOffinancialstatements, matterbe treatedin the financialstatements
accountantsin practicemustensurethat for the year ended31 December2020?

only timely information on the (A) mattershould disclosedby

reportingcompanyis mesented a note.
(B) the interest of the management (0) A provision should bc made for
or the reporting companyis $133 000.
(C) A provisionshould be made for
the interest Of the shareholders $140 000.
Of the reporting company is (D) Themattershouldbe ignoreduntil
the courtrules.
true and fair information on the
reporting firm is provided to
-makers
 information
to thefollowing
Which of the following is the correct Company.
equation forthe acid-lest(quick)ratio? about 'lie ABC
ComprehensiveIncome
Stnlementof
forthe yearended
is providedfor
June2016.
Currenlassets— s
100
Sales 31
sold
(SO000) 27
iou
110000 37
prolit
Current assets —
40. What analysiswas condWted

(A) Ratio
(B) Vertical
What is the cffcct Of the following (C) I lorizontal
transactionon the cash or n linn
in tams or cashnow?
GramingOfChristmasloansto staff 41. Which of following representsthe
corr«i Of
(A) increase cash
(B) No effect cash prefetaxc
(C) Reductionin cash creditors,ordinaryshareholders
(D) Multiple effects cash preferatcc ordinary
shareholders,unsecured
creditors
The operating activities Ofa business Unsecuredcreditors. ordinary
inchnk shareholders,preference
shareholders
(A) long—term
Ixxrowiugs (D) Unsecuredcreditors,preference
(B) a ncw issueOfordinaryshares shareholders,ordinary
(C) Equisition of k)ng4crmassas
(D) cashreceipts thesale Ofgoods
42. Which Ofthe follcuvingshould NOT he 44. Regardingissuedsharecapital in financial
disclosedin a summary
of significant statements, n company is required to
accountingpolicies? disclosethe
Minority interestclaims (A) par
Dcpleciationtncthod (B) marketvalue
Ill. Valuationbasis followed (C) namesor shareholders
(D) tuunberofsharesheldbyemployees
only
Il only
(C) I and Il only refers thefollowing information.
(D) and only
Dividend per share SO.50
Marketpriceper share$15.00
The chief executiveOfficerof a Company Net income S SO 000
suggeststhat the ending inventoryfor the Numberof ordinaryshares30 000
currentlinancinlperiod should he shown
at pricesexceedingits actualcost. Which 45. What is the dividend yield?
Ofthe following BESTreflectsthe status
Ofthis suggestionin termsOflegality and $0.03
complianceWithaccountingstandards? (B) $0.50
$2,14
Legality Compliancewith $2.67
Standards

(A) Legal Complies

(B) Legal Does not comply
Illegal Complies
Illegal Does not comply