HKMA David Li Kwok Po College

First Term Examination 2021-2022

S.3 Humanities (BAFS)

Instructions to Candidates
1. Read all instructions through this paper carefully.
2. Time allowed is 40 minutes.
3. This paper contains 13 pages. All questions are
COMPULSORY.
4. Only the use of H.K.E.A.A approved calculators are allowed.
5. Unless otherwise specified, numerical answers should either
be exact or corrected to 3 significant figures.
6. Use a blue or black pen for this paper.
7. Put down your personal information in the space below.

FOR TEACHER’S USE ONLY

Question Number Score

1-7 /21
8-9 /12
10-12 /30
13 /37
Total Score /100

Name of Candidate: ( )
Class and Class Number: ( )
Name of Subject Teacher: ( )
Choose the best option among the given choices (A, B, C, D) and
circle the answer to indicate your choice.

1. Stock is a _________.
A. current liability
B. current asset
C. non-current liability
D. non-current asset

2. In the balance sheet of a company, regarding the item ‘Loan

from Martin (Repayable at 31 Dec 2023). If this is a current
liability, then what is the earliest date of the balance sheet?
A. 31 Dec 2022
B. 1 Jan 2023
C. 30 June 2023
D. 1 Jul 2023

3. What is the owner of a sole proprietorship business called

as?
A. Sole manager
B. Sole owner
C. Sole trader
D. Sole businessman

4. A limited company has a __________ existence.

A. separate legal
B. separate public
C. joined legal
D. joined public
5. When a finance company contacts their customers through
phone calls to persuade them to borrow money, what is the
promotion mix tool used?
A. Advertising
B. Public relations
C. Personal selling
D. Direct marketing

6. Which of the following promotion mix tools is used to drive

customers to develop a preference for the product?
A. Advertising
B. Public relations
C. Personal selling
D. Direct marketing

7. Classify each of the following items according to the table

below. It is given that the closing date of the company is 30
June 2018. (15 marks)

Representative Letter Item

A Current asset
B Non-current asset
C Current liability
D Non-current liability
E Expenses
F Additional income
G Capital
(a) Furniture and fixtures. ______
(b) Lighting and heating fees ______
(c) Bank overdraft ______
(d) Loan to John (Repayable on 10 Jan 2020) ______
(e) Debtors ______
(f) Bank ______
(g) Rental income ______
(h) Salaries and wages ______
(i) Motor vehicles ______
(j) Loan to Peter (Repayable on 22 Jul 2018) ______
(k) Rent ______
(l) Electricity charges ______
(m) Balance as at 30 June 2018 ______
(n) Rental deposits ______
(o) Loan from KW Ko (Repayable on 14 Dec 2019) ______

Answer the following questions.

8. Complete the following table. (6 marks)

Asset ($) Capital ($) Liability ($)

884,500 (a) 237,900
(b) 646,600 739,800
1,386,400 (c) 925,000
461,400 113,600 (d)
409,100 347,800 (e)
61,300 (f) 11,900
9. Suppose a company has a sales of $80000 in 2021, with
$30000 as the cost of goods sold, an additional income of
$70000 and $90000 for its expenses.
(a) On the whole, what is the main source of the company’s
income? Explain your answer. (3 marks)
(b) Does the company have a loss? Explain your answer.
(3 marks)
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10. Answer the following questions, taking McDonald's as an
example. (14 marks)
(a) What are the marketing mix tools? (4 marks)
(b) (i) Define ‘Product strategies’ (2 marks)
(b) (ii) Explain how the company applies the product strategies
'Product quality’ and ‘Line Stretching’ with examples.
(4 marks)
(c) Explain how the company applies the promotion strategy
‘Advertising’ and ‘Personal selling’ with examples.
(4 marks)
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11. Cathay Pacific Airways is the major airline of Hong Kong.
The following shows lists some of the major decisions of the
company in a year. (11 marks)

(1) Organizing ‘Fanfares’ promotion during off-peak season.

(2) Sponsoring the Hong Kong Rugby Contest
(3) Sending emails to customers to promote the Marco Polo
Club (Membership Programme)

(a) (i) State the type of ownership of this company. (1 mark)

(a) (ii) How can the company run their business? (1 mark)
(b) (i) Define ‘Promotion Strategies’. (2 marks)
(b) (ii) State the promotion mix tools used in the decisions (1),
(2) and (3). (3 marks)
(b) (iii) State the purpose of the promotion mix tools used in
decisions (1) and (2). (4 marks)
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12. (a) What is marketing management? (3 marks)

(b) List two importances of marketing management related
to customers. (2 marks)
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13. The following are the accounting records available in KK
company’s accounting records on 31 December 2020. Prepare:
(a) an income statement and; (15 marks)
(b) a statement of financial position (22 marks)
for the company.

1. Bank overdraft $41000

2. Cost of services $100000
3. Balance as at 1 January 2020 $330000
4. Loan from P Yueng (Repayable on 1 March 2021) $72000
5. Equipment $65000
6. Salaries and wages $23600
7. Electricity $4900
8. Total amount received from customers $180000
9. Long term investment $176000
10. Loan from AF Bank (Repayable on 1 April 2024) $90000
11. Trade Payables $33900
12. Rent and rates $14000
13. Motor vehicles $78000
14. Machinery $48000
15. Deposit received from customer $34000
16. Inventory $36700
17. Rental Deposit $19800
18. Cash $54800
19. Rental Income $5300
20. Water and gas charges $1900
21. Trade receivables $96000
22. Interest Income $3200
23. Short-term investment $64000
24. Petrol charges $6700

(Students are reminded that they should start a new page for
each sub-question.)
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END OF PAPER