金融英语证书真题

金融英语证书真题
2002金融英语证书中级法律真题
Introduction T o Law June 2002
Section one Question 1 Answer all questions below. Do not write more than 20 words on each sentence.
1.1 Explain what is an offer. (4 marks)
1.2 Name the 2 types of undue influence. (2 marks)
1.3 In the agreement (an offer and acceptance), what muse be certain. (1 mark)
1.4 What is the difference between a condition and a warranty and their consequence to the validity of a contract. (4 marks)
1.5 Give any two examples of strict liability. (2 marks)
1.6 Give any 3 characteristics of a negotiable instrument. (3 marks)
1.7 What is meant by “good faith”. (1 mark)
1.8 What type of indorsement is the following: (1 mark) “pay to the order of Bank of China for collection Signed by Li Rong sang”
1.9 Name 2 types of crossing of a cheque under the Bill of Exchange Ordinance. (2 marks)
Section two Answer any four questions out of the seven questions (2----8) below only. Each question carries 20 marks. Question 2 Answer all questions below. Read the following statements, state whether they are True(T) or False(F). If it is a f alse statement, try to rewrite a correct version to illustrate your answers. 2.1 All contracts made by persons of unsound mind are void. 2.2 Liability in tort may be terminated by death.
2.3 The rule of acceptance is applicable to cheque.
2.4 An account holder has a duty to inspect the monthly statement of account sent by his bank to him.
2.5 There is a general presumption that in domestic case, all parties intend to enter into a legally binding contract.
2.6 The most important element of “possesstion” in property law is physical control over a thing.
2.7 A drawee of a cheque is the person who writes and signs the cheque. 2.8 A director of a corporation is vicariously liable for the torts committed by the corporation.
2.9 A letter of intent is not legally enforceable.
2.10 A bill payable to a fictitious person is not a bill.
2.11 A right in rem in the law of property is the right against
a particular person.
Question 3 Chen Da Wen and Zheng Rong Lin are having a discussion. Chen says that a bank note is a bill of exchange but Zheng thinks otherwise. They come to you ask for your opinion. Advise if Chen or Zheng is correct and give reasons for you r answer.
Question 4 Briefly describe the essential elements of a valid and enforceable contract.
Question 5 Zhao Quan went to the supermarket and took a box of chocolates off the shelf. She noticed that price lable on t he box was marked ￥10 instead of the usual price of ￥15 printed on the other boxes. When she reached the cashier, she was told that price was incorrectly printed and that she should pay ￥15 for the chocolates. Zhao insisted that she would onl y pay the price of ￥10 as printed on the box. Advise Zhao of her legal rights.
Question 6
(a) Define “negotiation” of a bill of exchange.
(b) How is a bill of exchange negotiated.
(c) Explain briefly the meani ng of the words “not negotiable” that appear on a bill of exchange other than a cheque.
Question 7
(a) What must be plaintiff prove in order to succeed in an action of negligence.
(b) Huang is an estate agent. He is in charge of the sale of a block of flats. In the course of showing the individual units to prospective purchasers, he indicated that the owner of the block would refurbish the common areas. The purchasers of the units now claim that the owner has not kept his promise to renovate the common areas and are considering bringing an acti on against Huang. Advise Huang.
Question 8 What are mortgages, legal mortgages and equitable mortgages.
2002金融英语证书中级经济学真题
BASIC ECONOMICS June 2002
SECTION ONE Question 1 (Total: 20 marks) Answer all questions. Read the following statements and choose the best answer by writing the alphabetical letter on the answer sheets.
1.1 Mr Wang, a lawyer, is a better typist than his secretary, but he still has her to do the typing. What economic principle, much used in trade theory, does this illustrated?
(a) absolute advantage (b) economies of scale (c) diminishing returns (d) comparative advantage
1.2 The following four events may all increase the amount of apples demanded, but which one causes a movement along the demand curve?
(a) an increase in average incomes (b) a decrease in the price of apples
(c) an increase in the price of pears (d) a popular movie star says she likes apples
1.3 If a price rise increases revenue for the good being sold, then the demand for the good must be
(a) elastic (b) inelastic (c) reflexive (d) unitary elastic
1.4 A company that makes cars buys companies which makes tyres, glass and steel. This is an example of (a) vertical integra tion
(b) horizontal integration (c) monopoly (d) oligopoly
1.5 The kinked demand curve in an oligopoly arises from assuming that
(a) firms will follow an expansion in output but not a contraction
(b) firms will follow an increase in revenue but not a decrease
(c) firms will follow prices rises but not price cuts
(d) firms will follow prices cuts but not price rises
1.6 The permanent income hypothesis implies
(a) the short run marginal propensity to consume is negative
(b) the short run marginal propensity to consume is greater than one
(c) the long run marginal propensity to consume is higher than the short run propensity
(d) the short run marginal propensity to consume is higher than the long run propensity
1.7 Progressive taxes mean
(a) high income earners pay more tax than low income earners
(b) high income earners pay a higher proportion of their incomes in tax than low income earners
(c) income earners pay more tax if their income increases
(d) taxes are levied on income rather than consumption
1.8 Street lighting, lighthouses and defense are examples of
(a) public goods (b) merit goods (c) giffin goods (d) inferior goods
1.9 Which of the following must increase the terms of trade?
(a) an increase in export prices and a fall in import prices
(b) an increase in export prices and an increase in import prices
(c) an increase in export quantities and a fall in import quantities
(d) a fall in export prices and an increase in import prices
1.10 The “J―curve” shows that following a depreciation
(a) the quantity of exports falls, making the current account balance worse
(b) there is an improvement in the balance of payments so long as the Marshall―Lerner conditions are met
(c) the cost of imports rises immediately from the price effect, worsening the current account balance, but later quantities of imports and exports respond and the current account balance improves
(d) there is an initial drop in imports but this is later reversed
2002金融英语证书中级会计真题1
ACCOUNTING June 2002
SECTION ONE (Compulsory) Answer all six questions in this section. Each question carries 10 marks.
Question 1 (Total: 10 marks) Read and state whether the following statement are TURE (T) or FALSE (F). For false statement s you are required to corrected statements. Write all answers on the answer sheets.
1.1 A “Carriage Outwards” account normally has a debit balance.
1.2 “Long Term Investment” is an item of shareholders’ fund.
1.3 “Cash basis accounting” means tha t accounts only record items which have realizable values in cash.
1.4 A “Purchases” account records only items which were bought for resale.
1.5 “Share Premium” is a capital profit. 1.6 A “quick ratio” tests the liquidity of a business.
1.7 A variable cost is a cost which changes according to market conditions.
Question 2 (Total: 10 marks) Read the following statements and choose the correct answers by writing the alphabetical letter on the answer sheets.
2.1 A “relevant cost” is
(a) a cost which has been paid
(b) a future cost which is associated with the decision at hand.
(c) a future cost which must be incurred if a firm is to continue in business.
(d) a fixed cost in a project
2.2 Provision for doubtful debts is
(a) an account recording all debts which are doubtful in collection.
(b) a current liability.
(c) a current asset.
(d) a reduction in the value of an asset.
2.3 A cash flow statement
(a) shows the amounts of money in cash, or near cash form, received and paid out by a firm from trading during a period.
(b) shows the amounts of money in cash, or near cash form, received and paid out by a firm from all activities during a peri
od.
(c) shows the change in financial positions of a firm during a period.
(d) shows a firm’s cash tr ansactions during a period.
2.4 A sole trader’s capital at a particular date equals
(a) the amount of cash he has in the business.
(b) his net assets at cost in the business.
(c) all his assets in the business at realizable values.
(d) all his assets at book values in the business less all liabilities of the business.
2.5 A balance sheet shows
(a) all assets of a firm at market values and all its liabilities at
a particular date.
(b) all known assets and all known liabilities and capital of a firm at a particular date.
(c) estimated values of all assets, capital and liabilities of a firm at a particular date.
(d) all assets, all liabilities and proprietors’ fund at book values of a firm at a particular date.
2.6 A “liquid asset” means
(a) an asset in cash or readily convertible to cash.
(b) an asset which has not a physical form.
(c) an investment which is realizable at any time.
(d) a current asset other than trading stock
2.7 A machine bought for resale is
(a) a capital expenditure
(b) a trading stock item
(c) a fixed asset
(d) a production cost
2.8 A “break-even” sales volume means
(a) a sale volume which will produce no profit or loss
(b) a minimum sales volume which will produce the target profit.
(c) a sales volume which is very close to budget.
(d) a sales volume which is below the break-even point.
2.9 A dividend paid by a company is
(a) an appropriation of profits.
(b) a capital expenditure.
(c) a revenue expenditure.
(d) a return on capital
2.10 Capital profits mean
(a) profits derived from the use of capital
(b) profits derived from the use of fixed assets.
(c) returns on capital.
(d) profits from disposal of fixed assets.
2002金融英语证书中级会计真题2
Question 3 (Total: 10 marks) The following are the accounting balances of a manufacturing business as at 31 December 2001: $000 Stocks at 1 Jan 01: Raw materials 20 Work in progress 10 Finished goods 25 Wages paid to production workers 60 Raw materials bought in year 150 Factory administration expenses 12 Depreciation of production machinery 15 Further information: Closing stocks at 31 Dec 01: Raw materials 18 Work in progress 3 Finished goods 30 Required: Prepare a manufacturing account in good form for the business.
Question 4 (Total: 10 marks) The following are the account balances of a limited company as at 31 December 2001: $,000 $,000 Ordinary share capital 600 10% Preferential share capital 400 share premium on Ordinary shares 300 Retained profits 500 Debentures (due 30 June 2002 ) 1,300 Plant and machinery 1,700
Provision for depreciation of plant and machinery 600 Dividends declared: Preferential 40 Ordinary 10 Trade creditors 700 Trade debtors 1,200 Provision for doubtful debts 80 Office expenses due but unpaid 20 Investments income receivable 30 Investments in associated companies 920 Trading stock 700 _____ 4,500 4,500 Net profit for the year, after deducting profits tax $30,000 and interest payments $23,000, was $220,000. Required: Calculate the following accounting ratios for the company:
(a) Current ratio (2 marks)
(b) Quick ratio (2 marks)
(c) Return on investment (or assets) (3 marks)
(d) Return on equity (3 marks)
Question 5 (Total: 10 marks) X and Y were trading in partnership sharing profits and losses in the ratio of 1:1. They agreed to accept Z as a new partner. The new profit and loss sharing ratio among X, Y and Z would be 2:2:1. The capital account balances of X and Y were $100,000 (Cr) respectively. Z was to contribute $50,000 cash as his capital and also contribute $200,000 cash to the business as consideration for his share of the goodwill of the partnership. Required:
(a) Prepare a statement showing the sharing of the goodwill between the old partners and among the new partners. (5 marks)
(b) Make journal entries f or Z’s contributions assuming that no goodwill account is to be raised. (5 marks)
Question 6 (Total: 10 marks) On 1 May 2002 the cash book of a business showed a bank balance of $7,712 (Dr) but the bank statement of the same date showed a credit balance of $10,912. After checking the records, the following information was found: 1. Cheque received in the amount of $1,000 has been recorded in the cash book but has not been banked. 2. Cheque in the sum
$4,360 has been drawn and sent out but it has not been presented to the bank for payment. 3. A cheque for $960 was banked but was subsequently returned by the bank marked “Insufficient fund”. No entry has been made for this in the cash book. 4. Interest $200 has been charged by the bank but no entry has been made in the cash book. 5. A cheque for $3,700 from a customer has been incorrectly entered in the cash book as $2,700. It was correctly recorded by the bank. Required:
(a) Make adjusting entries in the cash book to show the correct balance.
(b) Prepare a bank reconciliation statement from the correct cash book balance to the balance in the bank statement. SECTION TWO Answer any two questions in this section.
Question 7 (Total: 20 marks) The book of Delta Ltd as at 31 December 2001 showed the following balances: $ Ordinary share capital ($1 per share) 3,000,000 8% Preferential Share capital ($1 per share) 300,000 Retained earnings at 1 Jan 2001 62,000 Plant and machinery at cost 6,000,000 Provision for depreciation of plant and machinery 2,400,000 Sales 8,000,000 Purchases 4,500,000 Discounts received from suppliers 200,000 Trading stock at 1 Jan 2001 500,000 Trade debtors 600,000 Bad debts written off 40,000 Provision for doubtful debts at 1 Jan 2001 30,000 Trade creditors 200,000 Auditors’ fees 90,000 Salaries and wages 700,000 Rents and ra tes 1,200,000 General expenses 500,000 Interim Preferential dividend paid 12,000 Cash 50,000 Additional informations
(a) Trading stock at 31 December 2001 was $700,000
(b) A dividend of 2 cents per share on the Ordinary Shares and a final dividend of 4% on the Preferential Shares had been declared but had not been accounted for.
(c) 20% depreciation using the straight line method should be provided for the plant and machinery.
(d) Provision for doubtful debts at 3% of the trade debtors should be made. (e) Corporate tax rate at 16% should be provided for in the accounts. Required: Prepare a Trading and Profit and Loss Account for the company for the year ended 31 December 2001 and a Balance Sheet of the company as at that date.
Question 8 (T otal: 20 marks) Mr Lee is a sole trader. He does not know accounting and he only keeps records of cash receipts and payments. The following is a statement of a receipts and payments of his business for the year ended 31.12 .01: $ $ Cash in hand 1.1.01 50,400 Payments for goods 1,131,000 Sales receipts 1,569,000 Transport expenses 87,000 Cash put in by Mr Lee 26,000 Rents and rates 38,100 Loan from Mr Wong 200,000 Wages paid to office assistants 60,000 Drawings by Mr Lee 120,000 Purchase of equipment 400,000 ________ Balance at
31.12.01 9,300 1,845,400 1,845,400 Further information:
(a) The loan from Mr Wong was received on 1.1.01 . Interest payable is 10% p.a.
(b) The equipment was purchased on 1.1.01. Estimated life is
5 years with no residue value. Depreciation should be provided for it on the straight line mrthod.
(c) The assets and liabilities of Mr Lee were as follows: 1.1.01
31.12.01 $ $ Stock in trade at cost 150,000 240,000 Trade debtors 138,000 200,000 Trade creditors 100,000 120,000 Equipment at cost __ 400,000 Cash balance 50,400 9,300 Required: Prepare a Trading and Profit and Loss Account for Mr Lee for the year ended 31.1.01 and a Balance Sheet as at that date.
Question 9 (Total: 20 marks) X and Y are in partnership
sharing profits and losses in the ratio 3:2. They agree to draw interest on their capital at 8% p.a.; an annual salary to Y of $50,000; and interest on drawings at 10% p.a.; and to allow interest on loans from partners at p.a. The capitals of the partners are to be kept intact. The financial information of the partnership as at 31 january 2001 disclosed the following: $ $ Capital : X 1,000,000 Y 600,000 1600,000 Current Accounts : X 52,600 Cr Y 10,420 Cr 63,020 Loan from X 300,000 Net
capital employed 1,963,020 The partners took drawings on 1 July 01: X $60,000; Y $ 30,000 Net trading profit for the year ended 31 December 2001 before interest and salaries to partners was $ 250,000. Required: Prepare an Appropriation Account or Statement and the pa rtners’ Current Accounts for the year.。