Answer A, D

Answer D

Solution
Depreciation charges 980,000
Profit on sale of non-current assets (40,000)
Increase in inventories (130,000)
Decrease in receivables 100,000
Increase in payables 80,000
Net effect 990,000
Answer B

Solutions
Estimated selling price 20,000,000
Estimated selling expense 2,500,000
NRV 17,500,000
Cost 22,000,000
=> Lower of NRV and Cost 17,500,000
The correct inventory valuation 147,500,000
Answer C

Solutions
Depreciation amount per month $ 531.25
Depreciation amount for 4 months (from Mar to Jun) $ 2,125 CP giảm, LN tăng
Incorrect expense (understated profit) $ 25,500 CP tăng, LN giảm
=> Net $ 23,375 LN giảm
Answer C

Solutions
Answer D

Solutions
Net profit (incorrect) $ 10,200.00 = Revenue - Expense
Capital expenditure $ 3,000
Revenue receipts $ 1,400
Net profit after correcting $ 14,600
Answer C

Solutions
Answer B, C
Answer B, C
Answer B
Answer D
Answer A, D
Answer B, C
Answer B, D
Answer C, D
Answer B

Solutions
Calling X is The number of units the company must sell to earn a profit of 42,000$
Profit + Fixed Expenses = (Unit price - Variable expenses) * No. of units
=> $42,000 + ($130,000 + $10,000) = ($17 - $7) * X
=> X = 18,200
Answer C
Answer B
Answer B

Solutions
The net earnings are $150,000 (= 6%*$2.5 million)
EPS = $150,000 / 1,000,000 shares = $0.15
Price = EPS * P/E = $0.15 * 18 = $2.7
Q1 Which of the following best describes the purpose of disclosure notes in the financial statements?
A. To provide more detail for the users of financial statements about the information in the statement of fi
B. To allow companies to present their financial results in a more favourable way by only disclosure some t
C. To give all the detail of all the transactions that occurred during the period because the main FS only pre
D. To explain the accounting treatment adopted where management have chosen not to apply accounting

Answer D

According to VAS 23 - Events After The Reporting Period, which TWO of the events require an adjustment to the
Q2 statements?
A. The bankrupcy of a major customer, with a subtantial debt outstanding at the end of the reporting perio
B. A fire destroying some of the company's inventory (the company's going concern status is not affected)
C. An issue of shares to finance expansion
D. Sale for less than cost of some inventory held at the end of the reporting period.
B, C
In the course of preparing a company's statement of cash flows, the following figures are to be included in the ca
operating activities.
Depreciation charges 980,000
Profit on sale of non-current assets 40,000
Q3
Increase in inventories 130,000
Decrease in receivables 100,000
Increase in payables 80,000
What will the net effect of these items be in the statement of cash flows?
A. Addition to operating profit 890,000 Author:
Since this adjustment amount
B. Subtraction from operating profit 890,000 appears without parentheses, it
C. Addition to operating profit 1,070,000 Author: indicates that the cash amount will
be $63,000 more than the amount
D. Addition to operating profit 990,000  Since this of
amount
company collected
is in parentheses,
net income.
less and
depreciation
it communicates that the
The reason is
cashamortization
than the amount of sales
reported on the income
expense reduced statement. This is determined
the company's net by
examiningincome,
how thebut balance
it did in notaccounts receivable changed
reduce the
Cash flows from operating activities during thecompany's
year. If Inventory
thecash
company's Valuereceivables
balance. and Cash Flow increased, it
indicates that not Anall sales
increase on the income statement
in inventory, werehand,
on the other
adjusment for collected. This is viewed as unfavorable
that a company for the
has spent morecompany's
money to pu
cash balance. Therefore,
more raw thematerials.
amount ofIfthe theincrease
inventoryinwas pai
accounts receivable is deducted
cash, the increase frominthe
theamount
value ofofinventory
net i
Depreciation charges (cp khấu hao) 980,000 income. deducted from net earnings. A decrease in
Profit on sale of non-currend assets 40,000 If the balance in the company's
inventory would accounts
be addedreceivable
to net earnings. If
had decreased, it indicates
inventorythat wasthe company
purchased oncollected
credit, anmore
increa
Operating profit before working capital changes 940,000
than the amount of sales reported
accounts payableon the income
would occur on statement.
the balanc
Therefore, the amountsheet,ofand the decrease
the amount in of
receivables
the increasewould
from
Receivables 100,000 be added to the amount
year toof thenet income.
other wouldThe bedecrease
added toinnet ear
receivables is positive, favorable,
The same and good
logic holds trueforforthe company's
taxes payable,
cash balance. salaries payable, and prepaid insurance. If
something has been paid off, then the differe
the value owed from one year to the next ha
subtracted from net income. If there is an am
that is still owed, then any differences will ha
be added to net earnings.
 accounts receivable is deducted
cash, the increasefrominthe
theamount
value ofofinventory
net i
income. deducted from net earnings. A decrease in
If the balance in the company's
inventory wouldaccounts receivable
be added to net earnings. If
had decreased, it indicates
inventorythatwasthe company
purchased oncollected
credit, anmore
increa
than the amount of sales reported
accounts payableon the income
would occur on statement.
the balanc
Therefore, the amount
sheet,ofand
the decrease
the amount in of
receivables
the increasewould
from
be added to the amount
year toofthenet income.
other wouldThebedecrease
added toinnet ear
receivables is positive, favorable,
The same and good
logic holds trueforforthe company's
taxes payable,
Inventories (HTK) (130,000) cash balance. salaries payable, and prepaid insurance. If
an increase in has been paid off, then the differe
something
Payable 80,000 payables theisvalue owed from one year to the next ha
added to
subtracted from net income. If there is an am
990,000the amount of net
that is still owed, then any differences will ha
income.be added to net earnings.
D

Q4 You are preparing the financial statements for a business. The cost of the items in closing inventory is 152.000.00
items which costs 22.000.000 VND and which were damaged in transit. You have estimated that it will cost 2.500
and they can then be sold for 20.000.000VND.
What is the correct inventory valuation for inclusion in the financial statements?
A. 130.000.000VND
B. 147.500.000VND
C. 149.500.000VND
D. 132.000.000VND
A. 130

A manufacturing company receives an invoice on 29/2/20x2 for work done on one of its machines. $25.500 of th
machine upgrade, which will improve efficiency. The accounts department do not notice and charge the whole am
Q5 Machine is depreciated at 25% per annum on a straight-line basis, with a proportional charge in the years of acqu
By what amount will the profit for the year to 30/6/20x2 be understated?
A. $19,125
B. $25,500
C. $23,375
D. $21,250
D. 21.25

Which of the following statements about research and development expenditure are correct?
1. If certain conditions are met, an entity may decide to capitalise development expenditure
2. Research expenditure, other than capital expenditure on research facilities, must be written off as incurred.
Q6 3. Capitalised development expenditure must be amortised over a period not exceeding 5 years.
4. Capitalised development expenditure must be disclosed in the statement of financial position under intangible n

A. 1,2 and 4 only

B. 1 and 3 only
C. 2 and 4 only
D. 3 and 4 only
C.

Net profit was calculated as being $10,200. It was later discovered that capital expenditure of $3000 had been tre
and revenue receipts of $1,400 had been treated as capital receipts.
Q7 What is the net profit after correcting this error?

A. $5,800
B. $8,600
C. $11,800
 D. $14,600
D. 14.6

A company has been notified that a customer has been declared bankrupt. The company had previously made an
Q8 Which of the following is the correct double entry to account for this new information?

A. Dr Irrecoverable debts/ Cr Receivables

B. Dr Receivables / Cr Irrecoverable debts
C. Dr Allowance for receivables/ Cr Receivables
D. Dr Receivables / Cr Allowance for receivables
D.

Q9 Which two of the following are limitations of the provisions of assurance?

A. Assurance work is carried out by people independence of the entity
B. Sampling is used in assurance work
C. Client systems have inherent limitations
D. Unqualified staff may be used on assurance engagements
C,D

Q10 Which two of the following constitute the best quality evidence concerning the net realisable value of inventory?
đc)
A. Company's controls over inventory counting
B. Post year-end sales invoices
C. Post year-end sales orders
D. Post year-end sales price lists
D

Q11 The finance director of Litten Ltd has recently informed the audit engagement partner that Litten Ltd will be seek
The finance director has implied that Litten Ltd will want to use the firm for significant amounts of advisory work
A. Self-interest
B. Management
C. Self-review

Q12 Which of the following services would it be least appropriate for a firm to carry out for an audit client?
A. Preparation of tax computation
B. Provision of tax advice
C. Provision of internal audit services
D. Preparation of the financial statements for a public interest entity

Q13 Which two of the following are objectives of the sales ordering part of the sales system ?
 A. Sales are only made to credit worthy customers
B. Goods are correctly invoiced
C. Cut-off is correct
D. Orders can be fulfilled

Q14 Melanice Hotel is a global group of hotels. The parent company, Melanice Holdings plc employs an internal audit
audits and investigations on the individual hotels in the group.
A. Secondment to the accounts department of the Singapore Melanice to cover the maternity leave of the
B. Special investigation into the profits of the New York Melanice where the group directors suspect a frau
C. Test of the controls at the Edinburgh Melanice as part of a routine internal audit cycle
D. Identification of risks at the proposed Nairobi Melanice, which is due to open in nine months' time

Q15 Which two of the following constitute sampling?

A. Testing 100% of the items in a population
B. Testing less than 100% of the items in a population
C. Testing all items with a certain characteristic
D. Testing items selected randomly from the population
 tements? Q16 Which two of the following are true in respect o
tion in the statement of financial position and statement of profit or loss and OCI A. Related party transactions tend to be
by only disclosure some things in the notes and not on the main FS. B. Disclosure of related party transaction
ause the main FS only present a summary. C. Related party transactions must be co
not to apply accounting standards. D. There may be a significant control risk

re an adjustment to the figures in the draft financial

If the company wants to earn a profit of $42,000
nd of the reporting period
rn status is not affected)

Q17
to be included in the calculation of net cash from

A. 14,000
B. 18,200
C. 26,000
D. 17,000
ent amount
arentheses, it
cash amount will
han the amount
entheses,
reason isit communicates that the
than the amount of sales
amortization
ement. This is determined
he company's net by
n accounts
not reduce thereceivable changed
any's
Valuereceivables
alance. and Cash Flow increased, it
ne the income statement
in inventory, werehand, signals
on the other
nfavorable
pany for the
has spent more company's
money to purchase
amount ofIfthe
materials. theincrease
inventoryinwas paid with
ted frominthe
ncrease theamount
value ofofinventory
net is
rom net earnings. A decrease in
y's accounts
would be added receivable
to net earnings. If
hat
wasthe company
purchased oncollected
credit, anmore
increase in
ported
ayableon the income
would occur onstatement.
the balance
e decrease
the amount in of
receivables
the increasewould
from one
eet income.
other would The bedecrease
added toinnet earnings.
able, and good
ogic holds trueforforthe company's
taxes payable,
yable, and prepaid insurance. If
has been paid off, then the difference in
owed from one year to the next has to be
from net income. If there is an amount
owed, then any differences will have to
o net earnings.
 ted frominthe
ncrease theamount
value ofofinventory
net is
rom net earnings. A decrease in
y's accounts
would be addedreceivable
to net earnings. If
hat
wasthe company
purchased oncollected
credit, anmore
increase in
ported
ayableon the income
would occur onstatement.
the balance
e decrease
the amount in of
receivables would
the increase from one
eet income.
other wouldThe bedecrease
added toinnet earnings.
able, and good
ogic holds trueforforthe company's
taxes payable,
yable, and prepaid insurance. If
has been paid off, then the difference in
owed from one year to the next has to be
from net income. If there is an amount
owed, then any differences will have to
o net earnings.

Current asset MINUS current liabilities is the

g inventory is 152.000.000VND. This includes some Q18

ed that it will cost 2.500.000VND to repair the items

A. Current ratio
B. Net Worth
C. Working Capital
D. Quick ratio

machines. $25.500 of the costs is actually for a What does the accounts receivable turnover rati
and charge the whole amount to maintenance costs.
arge in the years of acquisition and disposal. Q19

A. How often AR is received

B. How many times average AR is collect
C. AR Balance is at the end of a period
D. Bad debt balances at year end

rect? The Carlos Company has gross sales of $2.5 milli

re outstanding. There are no preferred shares. The
tten off as incurred.
years. Q20
sition under intangible non-current assets.

A. $0.68
B. $2.70
C. $3.80
D. $4.10

Revenue receipts should

re of $3000 had been treated as revenue expenditure appear in the Statement There are four pipes used to fill a tank at a const
of profit or loss (it is no to reduce this time taken to 2 hours. How many
longer called the Income
Statement). Q21
Capital receipts do not
appear in the Statement
of profit or loss.
A. 2
B. 4
C. 6
 D. 8

had previously made an allowance for this debt. There are 5 objects: scissors, pencil, bottle, apple
Q22 - Each box must contain at least 2 objects
- The scissors are in the right box.
- The apple and banana are in the box next to on
-A.The pencilLeft
is in the left box
-B.The bottleCentre
is in the same box with the pencil.
The sixth object, a coin, is placed in one of the th
C. Right

Q23 Which cube can be formed by folding the given s

able value of inventory? (GT thuần có thể thực hiện

Q24 There are 5 objects: scissors, pencil, bottle, apple

at Litten Ltd will be seeking a stock exchange listing. - Each box must contain at least 2 objects
A. Left
mounts of advisory work in relation to the listing, but
B. Centre

n audit client?

C. Right
mploys an internal audit function which carries out Q25
e maternity leave of the financial controller. The Bronze Watch displays the time as 15:45.
p directors suspect a fraud may have been carried out. A. 1
B. 0
nine months' time C. Insuffient information

Q26 A man walked diagonally across a square lot. Ap

A. 20
B. 24
C. 30
D. 33

Q27 Which Chinese corporation is investing in Shope

A. Alibaba
B. Tencent
C. Huawei
D. Baidu

Q28 Which airlines are granted direct flights to the U

A. Vietjet Air
B. Jetstar Pacific
C. Bamboo Airways
D. Vietravel Airlines

Q29 When you need to find everything in a table or a

employee names based on their employee IDs. Y
A. SUMIFS
B. FIND
C. IF
D. VLOOKUP
Q30 When did Vietnam join the WTO?
A. 1999
B. 2007
C. 1995
D. 2009
lowing are true in respect of related party transactions?
arty transactions tend to be low-risk to the auditor.
of related party transactions is unlikely to be material to the financial statements
arty transactions must be completely disclosed in the financial statements
y be a significant control risk in relation to related party transactions.

s to earn a profit of $42,000 instead of breaking even, what is the number of units the company must sell?
 current liabilities is the

unts receivable turnover ratio tell us?

n AR is received
y times average AR is collected
e is at the end of a period
balances at year end

has gross sales of $2.5 million and a net profit margin of 6%. Total equity is $3.8 million with 1 million shares
re no preferred shares. The company has a P/E ratio of 18. What is the market price per share?

used to fill a tank at a constant rate. Altogether, the four pipes are able to fill up the tank in 4 hours. The owner wishes
aken to 2 hours. How many more pipes filling up the tank at a constant rate will they need to install?
scissors, pencil, bottle, apple and banana. They are kept in either one of the three boxes - left, right and centre.
ain at least 2 objects
he right box.
na are in the box next to one with the bottle
left box
same box with the pencil.
oin, is placed in one of the three boxes. Which box is it placed in?

ormed by folding the given shape?

scissors, pencil, bottle, apple and banana. They are kept in either one of the three boxes - left, right and centre.
ain at least 2 objects
splays the time as 15:45.

information

nally across a square lot. Approximately, what was the percent saved by not walking along the edges?

oration is investing in Shopee now?

anted direct flights to the US?

nd everything in a table or a range by rows. For example, look up part of a car's price by part number, or find
sed on their employee IDs. You will use functionality :
oin the WTO?
Answer B

Solutions
Answer C

Left Center Right

Pencil apple Scissors
Bottle bânna
Answer D
Answer
Answer A
Answer C 1 29%
1.414214
Answer B
Answer C
Answer D
Answer B