KLE BIG 4 PRACTICE TEST 2021

Practice test for accountants who wants to enter the Big 4 in Vietnam. Hope these documents can help you open a clearer future ..........................................................................................................................

BIG 4 PRACTICE TEST 2021

A QUESTIONS:

Question 1: A company's closing inventory at 31 March 2021 amounted to £148,700 The following items were included, at cost, in the total:

1 800 finished goods, which had cost £30 each and normally sold for £50 each

Owing to a defect in manufacture, they were all sold after 31 March 2021 at 70% of

their normal price Selling expenses amounted to 20% of the proceeds

2 200 finished goods, which had cost £20 each These too were found to be defective Remedial work in March 2021 cost £5 each, and selling expenses were £2 each They were sold for £32 each

What should be the inventory value after considering the above items?

treated in the financial statements?

A Accrued for over the year and charged to maintenance expenses

B Provided for in advance and charged to maintenance expenses

C Capitalised and depreciated over the period to the next overhaul

D Charged to profit or loss when the expenditure takes place

Question 3: A company's policy is to charge depreciation on plant and machinery at 20% per year on cost, with proportional depreciation for items purchased or sold

Question 4: The following information relates to a bank reconciliation The balance

in the cash at bank account before taking the items below into account was £7,170

overdrawn

1 Bank charges of £625 on the bank statement have not been entered in the cash at

bank account

2 Cheque payments totalling £4,475 have been entered in the cash at bank account

but have not been presented for payment

3 Cheques totalling £6,375 have been correctly entered on the debit side of the cash

at bank account but have not been paid in at the bank

4 The bank has credited the account in error with £525 which belongs to another

customer

What was the overdrawn balance as shown by the bank statement? Please filling in this blank the correct number

(Example: Your answer is £4,475 => Filling 4475 )

Question 5: What is the treatment for negative goodwill?

A Credit directly to the statement of profit or loss

B Credit directly to the statement of changes in equity

C Credit directly to the investment in subsidiary

D Credit directly to the liabilities

Question 6: A company receives rent for subletting part of its office block

Rent, receivable quarterly in advance, is received as follows:

Date of receipt End date Period covered $

1 October 20X1 31 December 20X1 3 months 7,500

30 December 20X1 31 March 20X2 3 months 7,500

1 July 20X2 30 September 20X2 3 months 9,000

1 October 20X2 31 December 20X2 3 months 9,000

What figures, based on these receipts, should appear in the company's financial

statements for the year ended 30 November 20X2?

Statement of profit or loss Statement of financial position

A $34,000 Debit Rent in arrears (Dr) $3,000

B $34,500 Credit Rent received in advance (Cr) $6,000

C $34,000 Credit Rent received in advance (Cr) $3,000

D $34,000 Credit Rent in arrears (Dr) $3,000

Question 7: ABC Company Limited operated in the hospitality industry The

financial year end is 31 December 2019 On 30 Jan 2020, WHO declares health

emergency due to Covid-19 outbreak There were impact of the Covid-19

subsequently to company’s revenue reported in Jan’20 The management of the

Company is going to authorize for issue the Financial statement on 31 January 2020 Which ONE of the following should be correct treatment for the above event under IAS 10- Event after the reporting period?

A This is classified as adjusting event All the assets/ liabilities valuation need to be

considered

B This is classified as non-adjusting event The company need to disclose and impact

is about going concern assumption

C This is classified as non-adjusting event The company need to disclose and impact

is about valuation of assets

D None of above treatments

Question 8: Phantom acquired 70% of the $100,000 equity share capital of Bentley, its only subsidiary, for $200,000 on 1 January 2020 when the retained earnings of

Bentley were $156,000

At 31 December 2020 retained earnings are as follows

Phantom 275,000

Bentley 177,000

Phantom considers that goodwill on acquisition is impaired by 50% Non-controlling

interest is measured at fair value, estimated at $82,800

What are group retained earnings at 31 December 2020?

A $276,300

B $289,700

C $280,320

D $269,200

Question 9: Bella has a property which cost £590,000 on 1 July 20X3 It is being

depreciated on the straight-line basis over 20 years to its residual value of £70,000

On 30 June 20X9, Bella carried out an impairment review and has assessed that the property had a fair value less disposal costs of £390,000 and a value in use of

£410,000 What is the impairment loss in respect of the property at 30 June 20X9?

A Making a rights issue of equity shares

B Issuing further long-term loan notes

C Making a bonus issue of shares

D Paying dividends on its equity shares

Question 11: An entity carries its property at revalued amount Property values

have fallen during the current period and an impairment loss has been recognized

on the property, however its carrying amount is still higher than its depreciated

historical cost Please determine the impairment loss should be recorded under:

A Profit or loss

B Revaluation surplus

C Other comprehensive income

D Retained earnings

Question 12: A product requires five hours of direct labour at £6.25 per hour, and

requires other direct expenses of £58.75 In its production, it requires 24 minutes of assembling

Possible overhead absorption rates have been calculated to be £8.1 per direct labour hour or £41.5 per assembling machine hour Using the direct labour hour basis of

overhead absorption, calculate to the nearest penny the total product cost

A 74.5

B 106.6

C 130.5

D 147.1

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Question 13: The annual audit of Midwestern Manufacturing revealed that sales

were accidentally being recorded as revenue when the goods were ordered, instead

of when they were shipped Assuming the amount in question is material and the

client is unwilling to correct the error, the CPA should issue:

A An unqualified opinion or adverse opinion

B A qualified “except for” opinion or disclaimer of opinion

C A qualified “except for” opinion or adverse opinion

D An unqualified opinion with an explanatory paragraph

Question 14: An auditor will most likely review an entity’s periodic accounting for

the numerical sequence of shipping documents to ensure all documents are included

to support management’s assertion about classes of transactions of

A Occurrence

B Completeness

C Accuracy

D Classification

Question 15: The auditor of KAC wishes to reduce audit risk Which the following

actions could the auditor take to achieve this?

(1) Increase the sample size

(2) Reduce control risk

(3) Assign more experienced staff to the engagement team

A (1) only

B (2) only

C (1) and (3) only

D (2) and (3) only

Question 16: Some account balances, such as those for pensions and leases,

are the result of complex calculations The susceptibility to material misstatements

in these types of accounts is defined as

A Audit risk

B Detection risk

C Sampling risk

D Inherent risk

Question 17: During which of following stages of the audit must analytical

procedures be used, in accordance with ISA?

A To assit them in designing and performing futher audit procedures

B To help them how much the audit will cost

C To ascertain whether the audit report will be qualified or not

D To assit when writing their report to management

Question 19: Which two of the following are elements of an assurance engagement?

A Inherent risk and Detection risk

B Audit risk and Detection risk

C Inherent risk and Control risk

D Detection risk and Control risk

Question 21: ABC Co is a new foreign invested company which was established and began trading in Vietnam by the end of 2019 The company’s fiscal year end is 31

December ABC Co is eligible to declare value added tax (VAT) on a monthly basis Which of the following combinations correctly describes the deadlines for settling

the taxes which ABC Co will be subject to in 2021? income tax (CIT) purposes for

its financial year ended 30 June 2020?

Value added tax (VAT)/ Provisional corporate income tax /(CIT) Business

C The 20th day of the following month/The last day of the first month of the following

quarter/ The 30th day of the following year

D The 30th day of the following month/ The last day of the first month of the following

quarter/ The 30th day of the following year

Question 22: In 2020, ABC Co, a company incorporated in Vietnam, entered a

contract with XYZ Co, a foreign company incorporated outside Vietnam to

purchase a machine for USD 1 million The price is net of all WHT in Vietnam The terms of delivery for the machine were cost, insurance, freight (CIF) to Dinh Vu

Port, while tittle and risk to the goods would be transferred at the uploading port in China According to the contract, XYL would not provide any services, except for

the guarantee and replacement for defects within 2 years (the machine would be

shipped back to China for fixing or replacing) The contract was settled full amount

in 2020

What is the amount of FCT, under the deemed method for the fiscal year 2020,

which ABC Co is required to pay in relation to the contract amount paid to XYZ

Question 23: Mr.Tien, a 40-year-old Vietnamese tax resident, works for SY Tech

Vietnam He was relocated back to Vietnam on 1 January 2020 after a four-year

secondment to SY Tech Australia, a sister company of SY Tech Vietnam In 2020,

Mr.Tien received VND250 million monthly gross salary plus a performance bonus

equivalent to VND260 million for his work in Australia During 2020, SY Tech

Vietnam also paid VND88 million to their vendor in Vietnam for two return airfare tickets for Mr Tien to visit his 30-year-old wife and 16-year-old son who live in

Australia

Assuming (i) SY Tech Vietnam registered successfully his son as his dependent from January 2020; (ii) no insurance contribution; and (iii) the PIT would be borne by

employee

What is Mr.Tien’s annual personal income tax (PIT) liability (in VND millions – to

be rounded only in the final PIT calculations) in the year 2020?

A VND989 million

B VND994 million

C VND882 million

D VND973 million

Question 24: In February 2021, Mr Duy and Mr Tung, two Vietnamese tax

residents, were the equal co-winners of a promotion prize, an Audi A8L which had a market value of VND5,6 billion, inclusive of 10% VAT, from a real estate company What is the amount (in VND million, rounded by one decimal) of Ms Tung’s

personal income tax (PIT) liability on the above promotion prize?

A VND504 million

B VND559 million

C VND279,5 million

D VND252 million

Question 25: In 2020, KSM Co, a Vietnamese company, received compensation in

cash of VND1,000 million from an insurance company for damage to goods caused

by a fire According to the insurance policy, the compensation does NOT cover any value added tax (VAT) on the purchase of the goods The insured goods were

purchased by KSM Co for VND2,200 million (inclusive of VAT 10%)

What is the amount of output value added tax (VAT) and creditable input VAT (in VND millions) KSM Co is required to declare in 2020 as a result of the above

Question 27: Which country has the third highest number of Covid 19 cases in the

world until now?

A Brazil

B India

C America

D FranceQuestion 28: Who is the current president of Vietnam National Assembly?

A Nguyen Thi Kim Ngan

B Nguyen Phu Trong

C Vuong Dinh Hue

D Nguyen Xuan Phuc

Question 29: Which Vietnamese film was the first to be shown in the US and was

selected to compete in the category of Best International Film at the Academy

Awards?

A Dreamy Eyes

B Furie

C The Tailor

D Yellow Flowers on the Green Grass

Question 30: Name the colors of the Olympic logo?

A Blue, Pink, Yellow, Green, Grey

B White, Blue, Red, Green, Yellow

C Black, Grey, Pink, Green, Yellow

D Blue, Black, Red, Yellow, Green

Question 31: Which the following function in Microsoft Excel software used to

calculate the total value of filtered rows ?

A SUMIF()

B SUM()

C SUMPRODUCT ()

D SUBTOTAL()

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Internet Service Providers (ISP) – Satisfactory Survey Scores

Question 37: What proportion of scores were 50 and below for ISP5?

Question 39: What is the ratio of the number of scores above 50 and below 86 to the total number of scores in the survey?

A 2.85:1

B 1:3.85

C 1:1.35

D 3:4

Question 40: A computer service firm charges £98 per month for an on-site

maintenance contract If no maintenance contract is in place, the firm charges £432 for an on-site visit How many call-outs per year would make the maintenance

By what percentage did the total profit made by all the branches together increase

from Year 1 to Year 3

42 How do things float on the of the water?

43 Strong is expected to hit the East Coast this evening

44 If you don’t do what I say, you will suffer the

45 The sun will soon the ice

46 Sales grew dramatically as the company expanded

47 They never me in their plans

48 During the eighties, there was a increase in the labor force

49 It is that I will work over time tonight

50 Rising sea levels is also an example of climate change due to the

51 All the show that show that dinosaurs existed in the past

Exercise 2:

Psychotherapists recognize that the law is generally in place to uphold client-therapist

confidentiality However, there are situations that may occur where the therapist is under obligation to break that confidence This obligation can vary depending upon where the therapist is practicing and it may occur as a result of their employment contract or of the law Where such an issue does occur, the therapist is expected to firstly try and discuss

the presenting issue with their client; however, in situations where the factors under

consideration are particularly urgent, it is accepted that this cannot always be the case

Legitimate breaches of confidentiality relate to circumstances where the information the client has shared relates to acts of terrorism; information of this nature must be reported There are other circumstances where breaching confidentiality may be considered

legitimate, for example, in the case of serious crime or suspected child abuse Individual employers and independent therapists have their own boundaries but must agree this

contractually with their client at the outset of the therapeutic relationship

Do the following statements agree with the information given in the text?

52 Being obliged to break confidentiality in a therapeutic relationship is always a direct result of the law

53 When a client reports their involvement in an act of terrorism, their therapist is legally obliged to report this

54 Therapists have some flexibility regarding what they deem serious enough to lead them

to breach confidentiality

55.Most therapists agree with the conditions the law places on them relating to breaching client confidentiality

56 If a therapist breaches confidentiality about a serious issue without first informing their

client of their intentions, they are breaking the law