ACCA Competition for University Students - Are YOU a Finance Leader of Tomorrow?

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1 ACCA Competition for University Students - Are YOU a Finance Leader of Tomorrow? Thank you for registering to our competition. Please select the right answers to as many questions as you can within the 30 minutes time limit and press the SUBMIT button at the end. Please make sure to register with the same address as the one indicated when registering to the competition. * Required address * Your 1. The major purpose of the International Accounting Standards Board (IASB) is to ensure consistency in.which two words complete the sentence above? A Financial control B Corporate reporting C External auditing 2. The overall average age of a population in a country is directly dependent on two demographic factors: Birth rate and death rate.assuming equal rates of change, which of the following must lead to an overall ageing of the population? Birth rate Death rate 1/12

2 A Rising Rising B Falling Rising C Rising Falling D Falling Falling 3. What is the primary responsibility of the external auditor? A To verify all the nancial transactions and supporting documentation of the client B To ensure that the client s nancial statements are reasonably accurate and free from bias C To report all nancial irregularities to the shareholders of the client D To ensure that all the client s nancial statements are prepared and submitted to the relevant authorities on time 4. Which of the following is a purpose of the International Federation of Accountants? A Agreement of legally binding nancial reporting standards across all member accountancy organisations B Prevention of international nancial crimes, such as money laundering and insider dealing C Promotion of ethical standards in all member organisations D Development of universally applicable detailed rules to deter inappropriate behaviours 5. Malachi has been asked by his manager to obtain information about ABC Company, which is bidding for a contract offered by Malachi s company in the near future. The two statements which he will be using as his sources are the statement of nancial position (SOFP) and the f l ( ) h f h 2/12

3 statement of pro t or loss (SOPL). The information he is required to obtain is as follows: A SOFP SOPL SOPL SOFP B SOPL SOFP SOFP SOPL C SOPL SOFP SOPL SOFP D SOFP SOPL SOFP SOFP 6. The system used by a company to record sales and purchases is an example of which of the following? A A transaction processing system B A management information system C An o ce automation system D A decision support system 7. In an economic environment of high price in ation, those who owe money will gain and those who are owed money will lose.is this statement true or false? True 3/12

4 False 8. The implementation of a budgetary control system in a large organisation would be the responsibility of the internal auditor.is this statement true or false? True False 9. A Company manufactures and sells one product which requires 8 kg of raw material in its manufacture. The budgeteddata relating to the next period are as follows: A 141,000 B 147,000 C 157,000 D 163, Which of the following are bene ts of budgeting? 2 points 4/12

5 A 1 and 4 only B 1 and 3 only C 2 and 3 only D 2 and 4 only 11. Using an interest rate of 10% per year the net present value (NPV) of a project has been correctly calculated as $50. If the interest rate is increased by 1% the NPV of the project falls by $20.What is the internal rate of return (IRR) of the project? A 7 5% B 11 7% C 12 5% D 20 0% 12. A company which operates a process costing system had work-in-progress at the start of last month of 300 units(valued at $1,710) which were 60% complete in respect of all costs. Last month a total of 2,000 units werecompleted and transferred to the nished goods h h l f 5/12

6 warehouse. The cost per equivalent unit for costs arising last monthwas $10. The company uses the FIFO method of cost allocation.what was the total value of the 2,000 units transferred to the nished goods warehouse last month? A $19,910 B $20,000 C $20,510 D $21, A manufacturing company operates a standard absorption costing system. Last month 25,000 production hours werebudgeted and the budgeted xed production cost was $125,000. Last month the actual hours worked were 24,000and standard hours for actual production were 27,000.What was the xed production overhead capacity variance for last month? A $5,000 Adverse B $5,000 Favourable C $10,000 Adverse D $10,000 Favourable 14. Which of the following would not be expected to appear in an organisation s mission statement? A The organisation s values and beliefs B The products or services offered by the organisation 6/12

7 C Quanti ed short term targets the organisation seeks to achieve D The organisation s major stakeholders 15. A company uses an overhead absorption rate of $3 50 per machine hour, based on 32,000 budgeted machine hoursfor the period. During the same period the actual total overhead expenditure amounted to $108,875 and30,000 machine hours were recorded on actual production.by how much was the total overhead under or over absorbed for the period? A Under absorbed by $3,875 B Under absorbed by $7,000 C Over absorbed by $3,875 D Over absorbed by $7, The budgeted information below relates to a manufacturing company for next period. The normal level of activity is 14,000 units per period. Using absorption costing the pro t for next period has been calculated as $36,000.What would be the pro t for next period using l 7/12

8 marginal costing? A $25,000 B $27,000 C $45,000 D $47, Prisha has not kept accurate accounting records during the nancial year. She had opening inventory of $6,700 and purchased goods costing $84,000 during the year. At the year end she had $5,400 left in inventory. All sales are made at a mark up on cost of 20%.What is Prisha s gross pro t for the year? A $13,750 B $17,060 C $16,540 D $20, The transactions below relate to Rashid s electricity expense ledger account for the year ended 30 June 20X9. What amount should be charged to the income statement in the year ended 30 June 20X9 for electricity? 2 points 8/12

9 A $6,600 B $5,400 C $5,500 D $5, Which of the following items could appear in a company s cash ow statement? (1) Surplus on revaluation of non-current assets; (2) Proceeds of issue of shares; (3) Proposed dividend; (4) Bad debts written off; (5) Dividends received. A (1), (2) and (5) only B (2), (3), (4), (5) only C (2) and (5) only D (3) and (4) only 20. Span of control is concerned with the number of levels of management in an organisation.is this statement true or false? True False 21. Which one of the following is an example of a internal stakeholder? A A shareholder B An non-executive director 9/12

10 C A manager D A supplier 22. Annie is a sole trader who does not keep full accounting records. The details below relate to her transactions with credit customers and suppliers for the year ended 30 June 20X6. What gure should appear for purchases in Annie s income statement for the year ended 30 June 20X6? A $325,840 B $330,200 C $331,760 D $327, A company has a budgeted material cost of $125,000 for the production of 25,000 units per month. Each unit is budgeted to use 2 kg of material. The standard cost of material is $2 50 per kg. Actual materials in the month cost $136,000 for 27,000 units and 53,000 kg were purchased d d h h d l 2 points 10/12

11 and used.what was the adverse material price variance? A $1,000 B $3,500 C $7,500 D $11, Which of the following statements are TRUE of limited liability companies?(1) The company s exposure to debts and liability is limited(2) Financial statements must be produced(3) A company continues to exist regardless of the identity of its owners A 1 and 2 only B 1 and 3 only C 2 and 3 only D 1, 2 and At 30 June 2005 a company s allowance for receivables was $39,000. At 30 June 2006 trade receivables totalled$517,000. It was decided to write off debts totalling $37,000 and to adjust the allowance for receivables to theequivalent of 5 per cent of the trade receivables based h h ld h 11/12

12 on past events.what gure should appear in the income statement for the year ended 30 June 2006 for these items? A $61,000 B $22,000 C $24,000 D $23,850 Send me a copy of my responses. Nu sunt robot recaptcha Con dențialitate - Termeni Page 1 of 1 SUBMIT This content is neither created nor endorsed by Google. Report Abuse - Terms of Service - Additional Terms Forms 12/12