HKDSE 2022 BAFS MCQ (selected)

Q.3 An accounts clerk at a firm is preparing the trial balance and the financial statements, he will then submit relevant information to the manager.

Which accounting function(s) is/are performed in the situation above?

(1) communicating

(2) recording

(3) summarising

• A. (1) only

• B. (2) only

• C. (1) and (3) only

• D. (2) and (3) only

Q.4 Assume that the closing inventory of a firm decreases and its carriage outwards increases. How will this affect the gross profit and net profit of the firm?

• A. Gross profit increases. Net profit increases.

• B. Gross profit increases. Net profit remains unchanged.

• C. Gross profit decreases. Net profit decreases.

• D. Gross profit decreases. Net profit remains unchanged.

Q.5 David deposited $300 000 into a bank account on 1 April 2021. The deposit interest rate was 4% per annum, compounded quarterly. The total interest that David could get on 31 December 2021 was:

• A. $8 000

• B. $8 080

• C. $9 000

• D. $9 090

Q.10 Which of the following double entries are correct?

• A. (1) and (2) only

• B. (1) and (3) only

• C. (2) and (3) only

• D. (1), (2) and (3)

Q.12 On 1 January 2022, the total asset value of Wong's firm was $100 000. On 3 January, the firm purchased goods on credit at a cost of $30 000. On 31 January, goods costing $8 000 were sold on credit at a price of $12 000.

Based on the above information, calculate the total asset value of Wong's firm as at 31 January 2022?

• A. $122 000

• B. $126 000

• C. $134 000

• D. $142 000

Q.14 Chan's firm sells goods at a list price of $80 each. On 10 March 2022, it sold 1 200 units of goods to a customer. The following account was extracted from the books of Chan's firm:

Based on the above information, which of the following statements are correct?

(1) The goods were sold on credit.

(2) A discount of $10 per unit was given to the customer.

(3) The discount given to the customer was recorded in the discounts allowed account.

• A. (1) and (2) only

• B. (1) and (3) only

• C. (2) and (3) only

• D. (1), (2) and (3)

Q.16 Which of the following should be shown on the credit side of the capital account?

(1) losses made by the firm

(2) office expenses paid by the owner out of his own pocket

(3) a loan borrowed by the firm from the owner's friend

• A. (1) only

• B. (2) only

• C. (1) and (3) only

• D. (2) and (3) only

Q.19 The quick ratio as at 31 December 2021 is:

• A. 1.56:1

• B. 2.09:1

• C. 2.24:1

• D. 2.71:1

20. The return on capital employed for 2021 is:

• A. 26.96%

• B. 31.16%

• C. 31.50%

• D. 36.90%

Q.29 The bookkeeper prepared a trial balance as below, but some account balances were put on the wrong side:

Inventory as at 31 December 2021 was $14 000.

What is the net profit for the year ended 31 December 2021?

• A. $28 100

• B. $33 100

• C. $19 100

• D. $30 600