C2模擬題（五）
Question 41
An increase in inventories of $500 and a decrease in the bank balance of $600 and an increase in payables of $1,400 results in:
A. A decrease in working capital of $1,500
B. An increase in working capital of $1,500
C. A decrease in working capital of $1,300
D. An increase in working capital of $1,300
Question 42
The turnover of a company was $4 million and its receivables were 7.5% of turnover. The company wishes to have an allowance of 3% of receivables, which would result in an increase of 25% of the current allowance. What figure would appear in the income statement for bad debts?
Question 43
The following information was extracted from the balance sheets of ABC at 31 December Year 2 and at 31 December Year 1:
Year 1 Year 2
$000 $000
Stock 100 120
Debtors 140 175
Trade creditors 120 140
other creditors 55 75
What figure should appear as part of the cash flow statement for the year ended 31 December 2002?
A. $25,000 outflow
B. $15,000 outflow
C. $15,000 inflow
D. $25,000 inflow
Question 44
What is the fundamental objective of an external audit of a limited company?
A. Give advice to shareholders.
B. Detect fraud and errors.
C. Measure the performance and financial position of a company.
D. Provide an opinion on the financial statements.
Question 45
Which one of the following statements does not expresses the meaning of “true and fair presentation”?
A. There is only one true and fair presentation of a company‟s financial statements.
B. True and fair presentation is determined by compliance with accounting standards.
C. True and fair presentation is determined by compliance with company law.
D. True and fair presentation is largely determined by reference to generally accepted accounting practice.
Question 46
What is the principal duty of an external auditor?
A. To provide opinion on whether the financial statements provide fair presentation.
B. To ensure that a company‟s systems and controls are adequate to ensure the reliability of the accounting records.
C. To prevent fraud and errors.
D. To provide a report to the shareholders
Question 47
Which ONE of the following provides the best explanation of the objective of an internal audit?
A. The objective is to assist directors of a company in the effective discharge of their financial responsibilities towards the members.
B. The objective is to provide support to the external auditor.
C. The objective is to detect fraud and error.
D. The objective is to audit the financial statements.
Question 48
Which of the following best describes the role of the internal auditor?
A. Auditing the financial accounts.
B. Supporting the work of the external auditors.
C. Reporting to management on the accounting systems.
D. Ensuring value for money.
Question 49
Which of the following errors will cause the trial balance totals to be equal?
A. Errors of transposition.
B. Errors of omission.
C. Errors of principle.
D. All of the above.
Question 50
An error of commission occurs where the entries required for a transaction are partially omitted.
True/False
