KLE BIG4 trial test

Add 1 4th floor, 170 Bach Mai street, Hai Ba Trung District, Ha Noi, Viet Nam Add 2 No 3, Tho Thap street, Cau Giay Tel 02423223789 Website kle edu vn BIG4 TRIAL TEST 2020 A ACCOUNTING (19 QUESTIONS) Question 1 A limited liability company sold a building at a profit How will this transaction be treated in the companys statement of cash flows? A Proceeds of sale Cash inflow under financing activities Profit on sale Add to profit in calculating cash flow from operating activities B Proceeds of sa.

BIG4 TRIAL TEST 2020 -

A ACCOUNTING (19 QUESTIONS)

Question 1: A limited liability company sold a building at a profit How will this

transaction be treated in the company's statement of cash flows?

A Proceeds of sale Cash inflow under financing activities Profit on sale Add to profit in calculating cash flow from operating activities

B Proceeds of sale Cash inflow under investing activities Profit on sale Deducted from

profit in calculating cash flow from operating activities

C Proceeds of sale Cash inflow under investing activities Profit on sale Added to profit

in calculating cash flow from operating activities

D Proceeds of sale Cash inflow under financing activities Profit on sale Deducted from

profit in calculating cash flow from operating activities

Question 2: A business has received telephone bills as follows:

Date received Amount of bill Date paid

Quarter to 30 November 2018 December 2018 $739.20 January 2019

Quarter to 29 February 2019 March 2019 $798.00 April 2019

Quarter to 31 May 2019 June 2019 $898.80 June 2019

Quarter to 31 August 2019 September 2019 $814.80 October 2019

Quarter to 30 November 2019 December 2019 $840.00 January 2020

Quarter to 28 February 2020 March 2020 $966.00 March 2020

In the Statement of Profit or Loss for the year ended 31 December 2019 the charge for

telephone should be:

A $3,351.60

B $3,250.80

C $3,463.60

D $3,407.60

Question 3: On 1 January 20X0 KLE Co bought a machine for $70,000 It was estimated

that the machine’s useful life would be 7 years and its residual value $7,000 Two years

later the useful life was revised to three remaining years and at 31 December 20X3 the

machine was sold for $30,000

What was the profit on disposal?

A $20,000

B $8,000

C $2,000

D $12,000

Question 4: ABC Company Limited operated in the hospitality industry The outbreak of

COVID-19 since January 2020 has resulted in a challenging operational environment and will adversely impact the ABC Company Limited’s financial performance and liquidity position Subsequently revenue of period from Jan – Mar of 2020 has reduced significantly The Financial statement was authorised by issued on 15 March 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 needs 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

Question 5: If a material non-adjusting event occurs after the reporting date but before

the financial statements are approved, which information should be disclosed in the

financial statements?

A The nature of the event only

B An estimate of the financial effect only

C No disclosure required

D The nature of the event and an estimate of the financial effect

Question 6: What is the purpose of amortisation?

A To spread the cost of the intangible non-current asset over its useful life

B To ensure that funds are available to replace the asset in the future

C To reduce the value of the intangible asset

D To make net book value of intangible non-current asset approximately with its fair

value

Question 7: Which of the following statements about inventory valuation for Statement of

Financial Position purposes are correct?

1 According to IAS Inventories, average cost and FIFO are both acceptable methods of arriving at the cost of inventories

2 Inventories of finished goods may be valued at labour and materials cost only, without including overheads

3 Inventories should be valued at the lowest of cost, net realisable value and replacement cost

4 It may be acceptable for inventories to be valued at selling price less estimated profit margin

A Statements 2 and 4

B Statements 2 and 3

C Statements 1 and 3

D Statements 1 and 4

Question 8: A Company reorganize a manufacturing facility during December 2019 and

just commissioned a consulting engineer to carry out a feasibility study

Staff functions will change following the reorganization, so in December 2019 they contracted with a training company to provide retraining to take place in January 2020 Company hopes that reorganizing its manufacturing facility will improve quality control Which of these is a correct provision under IAS 37?

A The reorganization

B The staff training

C The reorganization and staff training

D Neither the reorganization nor the staff training

Question 9: A company values its inventory using FIFO method At 1 May 2019 the

company had 700 engines in inventory, valued at $190 each

During the year ended 30 April 2020 the following transactions took place

2019

1 July Purchased 500 engines at $220 each

1 November Sold 400 engines for $160,000

2020

1 February Purchased 300 engines at $230 each

15 April Sold 250 engines for $125,000

What is the value of the company’s closing inventory of engines at 30 April 2020?

A $195,500

B $106,000

C $188,500

D $166,000

Question 10: According to the illustrative financial structure in IAS 1 (revised) Presentation of financial statements, dividends paid during the year should be disclosed in:

A Statement of comprehensive income (statement of profit or loss)

B Statement of changes in equity

C Statement of financial position

D None of these

Nguy n Ti n Thành - Quán quân The Audit Race 2019

H c viên l p: Financial Accounting, Chu n b tuy n d ng ki m toán; Ph ng v n

H ng Nhung - Á quân A&A Arena 2019

H c viên l p: Financial Accounting, Chu n b tuy n d ng ki m toán, English

Foundation, English Elementary, English Intermediate

Bùi H ng H nh – Gi i nhì Future Chief Accountant

H c viên l p: Financial Accounting, Chu n b tuy n d ng ki m toán, Vi t CV và

k n ng tr l i ph ng v n, H c làm tr lý ki m toán, English Foundation, English

Elementary, English Intermediate

Question 11: IFRS 10 Consolidated financial statements provides a definition of control

and identifies three separate elements of control Which one of the following is NOT one

of these elements of control?

A Power over the investee

B The power to participate in the financial and operating policies of the investee

C Exposure to, or right to, variable returns from its involvement with the investee

D The ability to use its power over the investee to affect the amount of the investor’s

returns

Question 12: Andrew buys goods with a list price of $7,200 on which he receives 20%

trade discount His supplier offers 5% discount for payment within 10 days Andrew pays half of the invoiced amount within 10 days and the balance 3 weeks later

A $5,616

B $5,580

C $5,400

D $6,300

Question 13: Chris’s trial balance at 30 September 2019 includes the following balances: Trade receivables: $75,943

Allowance for receivables: $4,751

How should these balances be reported in Chris’s Statement of financial position as at 30 September 2019?

A An asset of $75,943 and a liability of $4,751

B A liability of $75,943 and an asset of $4,751

C A liability of $71,192

D An asset of $71,192

Question 14: Jum bought a new machine from abroad The cost of the machine was

$80,000 The installation costs were $5,000 and the employees received training on how

to use the machine at a cost of $2,000

Before using the machine, a test was undertaken and the materials used for the test cost

$1,000

What should be the cost of the machine as shown in the company’s Statement of financial position?

A $85,000

B $87,000

C $86,000

D $80,000

Question 15: On 1 January 2018, Orange acquired 70% of the ordinary shares of Apple,

when the retained earnings of Apple stood at $15,000

The fair value of non-controlling interest at the date of acquisition was $40,000

At 31 December 2019 the Statements of Financial position of the each of the two companies were as follows:

Investment in Apple, at cost 50,000

Share capital - $1 shares 120,000 50,000

During the year ended at 31 December 2019, Orange sold goods for Apple for $15,000 (including a mark-up of 20%) One quarter of these goods remained in Apple’s inventory

at the year end

What amount should appear for non-controlling interest in the consolidated statement of financial position?

A $5,100

B $4,912.5

C $44,475

D $45,100

Question 16: Equipment constructed for a customer for an agreed price of$18,000 This

has recently been completed at a cost of $16,800 It has now been discovered that, in order

to meet certain regulations, conversion with an extra cost of $4,200 will be required The customer has accepted partial responsibility and agreed to meet half the extra cost

What is the value of inventory?

A $15,900

B $18,000

C $16,800

D $13,800

Question 17: The acid test or quick ratio should include

A Raw materials

B Work in progress

C Trade receivables

D Non-current liabilities

Question 18: Which one of the following would be shown in the 'other comprehensive

income' section of the statement of profit or loss and other comprehensive income?

A Revaluation gain on an investment property

B Profit on sale of an investment

C Receipt of a government grant

D Gain on revaluation of a factory building

Question 19: At 30 June 2019, customer join a contract with KLE to purchase 10 books

whose name is: “How to pass Big4 when you are third year student?” The agreed transaction price is $200 At that date, KLE provided the performance obligation of this contract to transfer all risk and reward of those books to the customer After 3 months, customer paid KLE all amount of this contract Assume KLE use VND to record all transaction The exchange rate is given as below:

What should be recorded in the Statement of Profit or Loss of KLE for the year end 31/12/2019?

A Financial income: 20.000 VND

B Financial expense: 20.000 VND

C Financial income: 40.000 VND

D Financial expense: 40.000 VND

B AUDITING (8 QUESTIONS)

Question 1: Which of the following are elements of an assurance engagement?

(1) A three-party relationship

(2) Determination of materiality

(3) Suitable criteria

(4) An engagement letter

A (1) and (4) only

B (1) and (3) only

C (1), (2) and (3) only

D (1), (2) and (4) only

Question 2: What are the two elements of the risk of material misstatement at the assertion

level?

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 3: Which of the following statements about materiality are correct?

(1) Information is material if its omission or misstatement could influence the economic decisions of users of the financial statement

(2) Materiality is based on the auditor’s experience and judgement

(3) Materiality is always based on revenue

(4) Materiality should only be calculated at the planning stage of the audit

A (1), (2), and (3)

B (1), (2), and (4)

C (1) and (2)

D (3) and (4)

Question 4: The auditor of Y Co has concluded that Y Co is not a going concern The

financial statements have been prepared on a going concern basis and management has refused to change them

What form of audit opinion will be issued by the auditor?

A An unmodified opinion

B A modified opinion due to material misstatement

C A modified opinion due to insufficient appropriate audit evidence

D An adverse opinion

Question 5: Which of the following assertions about classes of transactions and events for

the period under audit is defined below:

“Amounts and other date relating to recorded transactions and events have been recorded appropriately”

A Cut-off

B Accuracy

C Occurrence

D Classification

Question 6: What is overall audit risk?

A The risk that link to each item in the financial statements

B The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated

C The risk that procedures performed by the auditor to reduce audit risk to an acceptably low level will not detect a misstatement that exists and that could be material, either individually when aggregated with other misstatements

D The risk that material misstatement that could occur in an assertion and that could be material, individually or when aggregated with other misstatements, will not be prevented

or detected or corrected on a timely basis by the entity’s internal control

Question 7: Which of the following is NOT an assertion?

A Occurrence

B Classification

C Confidentiality

D Presentation

Question 8: Which of the following is NOT a type of analytical procedures?

A Ratio analysis

B Walk-through test

C Trend analysis

D Reasonableness test

C IQ, GENERAL KNOWLEDGE (3 questions)

Question 1:

Question 2: Which of the following is the highest building in the world?

A Shanghai Tower

B Lotte World Tower

C Burj Khalifa

D Landmark 81

Question 3:

A 3

B 4

C 6

D 8

KLE CHÚC CÁC B N MAY M N TRONG K INTERNSHIP 2021!