Sapp - KPMG Entrance Test
Sapp - KPMG Entrance Test
What amount of rental income should appear in the company’s statement of profit or loss
for the year ended 30 April 20X7?
A. $486,500
B. $460,900
C. $501,500
D. $475,900
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4. A company’s statement of profit or loss for the year ended 31 December 20X6 showed a
net profit of $83,600. It was later found that $18,000 paid for the purchase of a motor van
had been debited to the motor expenses account. It is the company’s policy to depreciate
motor vans at 25% per year on the straight-line basis, with a full year’s charge in the year
of acquisition.
What would the net profit be after adjusting for this error?
A. $106,100
B. $70,100
C. $97,100
D. $101,600
For these items, what total figures should be included in the company’s statement of
financial position as at 31 December 20X6?
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7. Annie is a sole trader who does not keep full accounting records. The following details
relate to her transactions with credit customers and suppliers for the year ended 30 June
20X7:
$
Trade receivables, 1 July 20X6 130,000
Trade payables, 1 July 20X6 60,000
Cash received from customers 686,400
Cash paid to suppliers 302,800
Discounts allowed 1,400
Discounts received 2,960
Contra between payables and receivables ledgers 2,000
Trade receivables, 30 June 20X7 181,000
Trade payables, 30 June 20X7 84,000
What figure should appear for purchases in Annie’s statement of profit or loss for the year
ended 30 June 20X7?
A. $325,840
B. $330,200
C. $331,760
D. $327,760
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10. Which of the following calculates a sole trader’s net profit for a period?
A. Closing net assets + drawings – capital introduced – opening net assets
B. Closing net assets – drawings + capital introduced – opening net assets
C. Closing net assets – drawings – capital introduced – opening net assets
D. Closing net assets + drawings + capital introduced – opening net assets
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12. Which of the following best describes the primary reason an independent auditor reports
on financial statements?
A. To give stockholders some assurance that any fraudulent activities will be detected.
B. To identify a poorly designed internal control structure that may produce unreliable
financial statements.
C. To provide expertise to clients, which may not be totally knowledgeable of prevailing
VAS.
D. To add credibility where appropriate, since the client may not be perceived as
objective with respect to its own financial statements.
13. The fact that errors and/or omissions in certain relatively insignificant account balances
would not affect an auditor's decision when reporting on the financial statements as a
whole relates most closely to which major audit concept?
A. Materiality
B. Audit risk
C. Management assertions
D. Reasonable assurance
15. The most favorable type of audit report opinion for the client to receive is:
A. Qualified
B. Unqualified
C. Full assurance
D. Exceptional
16. The study and practice of auditing is unlike other areas in accounting because it:
A. Requires the memorization of formulas and patterns.
B. Requires the knowledge of GAAP.
C. Requires common sense and some creativity.
D. Is required by law for all companies in the United States.
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19. Which of the following statements best describes an auditor’s responsibility to detect
errors, fraud and illegal acts?
A. The auditor should study and evaluate the client's internal control system and design
the audit to provide reasonable assurance of detecting all errors and fraud.
B. The auditor should consider the types of errors and fraud that could occur and
determine whether the necessary internal controls are prescribed and are being
followed.
C. The auditor should assess the risk that errors and fraud may cause the financial
statements to contain material misstatements and design the audit to provide
reasonable assurance of detecting material errors and fraud.
D. The auditor should assess the risk that errors and fraud may cause the financial
statements to contain material misstatements and determine whether the necessary
internal controls are prescribed and are being followed satisfactorily.
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What is the amount of the adjustment for non-deductible expenses, which CRS Co should
make for the car in its tax return for the year 2014?
A. VND0 million
B. VND208 million
C. VND320 million
D. VND528 million
22. Which of the following items of income would NOT be subject to personal income tax in
Vietnam?
(i) Medical support for fatal disease from the employer to the parent-in-law of an
employee
(ii) One-time home leave air fares for the family of an expatriate employee
(iii) Kindergarten tuition fees for the children of a Vietnamese employee working abroad
(iv) Voucher issued by the employer to an employee for lunches in the canteen operated
by the employer
A. i, ii and iii
B. ii, iii and iv
C. i, ii and iv
D. i, iii and iv
23. At the end of 2014, company, BND Co, paid bonuses to its board of directors of VND3,000
million. Each of the five directors is paid an equal amount of bonus. Two out of the five
directors are not involved in the daily management of the company’s business.
What is the amount of tax-deductible expenses which BND Co will be able to claim for the
year 2014?
A. VND3,000 million
B. VND1,200 million
C. VND1,800 million
D. VND0 million
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26. Ms Nga Le is a Vietnamese national with no dependants. On 1 January 2014, she signed a
gross employment contract with salary of VND260 million per month. Her employer is not
required to withhold compulsory insurance from her income.
What is the amount of Ms Nga Le’s monthly net take home income?
A. VND 81.15 million
B. VND 78 million
C. VND 178.85 million
D. VND 182 million
27. TDP Co, a Vietnamese company applying the value added tax (VAT) deduction method,
provided services to a foreign customer for VND200 million and charged VAT at 5% on the
invoice. In a tax review by a consultant, it was identified that the VAT rate used on the
invoice should have been 10%, however, TDP Co can no longer claim back the
undercharged VAT from the foreign customer.
What is the amount of additional output VAT which TDP Co will need to pay to the tax
authorities (rounded to the nearest VND million)?
A. VND 9 million
B. VND 10 million
C. VND 11 million
D. VND 20 million
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28. On 1 April 2017, Mr Chau, a Vietnamese national, started employment with a new
employer, CTD Co. CTD Co has a policy whereby both the employer and the employee
contribute to a voluntary pension fund approved by the Government. The monthly
contributions for the employer and the employee, respectively, are VND4·5 million and
VND2 million.
What is the amount of the deduction Mr Chau can claim against his taxable income for the
above contributions in 2014?
A. VND9 million
B. VND78 million
C. VND24 million
D. VND18 million
A. i only
B. ii and iii only
C. i and iii only
D. i, ii and iii
30. In 2017, company DMS Co purchased materials from suppliers who are households doing
business. DMS Co wanted to use the list of goods purchased (without invoices) to claim tax
deductible expenses for these purchases.
What is the threshold of annual revenue which households doing business must satisfy for
DMS Co to use the list of goods purchased method to claim for the purchases as a
deductible expense?
A. VND300 million
B. VND200 million
C. VND100 million
D. VND50 million
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32. You are working as a graduate trainee in an electronics company and are currently part of
an international project team looking at new routes to market. During a conference call,
you are finding it difficult to understand what one of your colleagues is saying. She is a
graduate trainee like you. You have met her a few times during a couple of conferences
you both attended, and you got on well. Her accent is very strong and she has a tendency
to speak very quickly when she is nervous. She is one of a number of people dialling in
from outside of the UK. You are in a meeting room with the project lead and a couple of
other colleagues. You can see that yours colleagues are also finding it difficult to
understand her. What would you do?
A. “When your colleague is no longer speaking, send her an instant message explaining
that she may benefit from slowing down a little as there are a few people who are
finding it difficult to understand her in the room where you are.”
B. “After the call acknowledge yours concerns to the others in the room and suggest that
you all compare notes to make sure you have a shared understanding of what she was
actually saying.”
C. “Mention your concerns to the project lead after the call, offering to speak to your
colleague if the project lead would like you to, explaining that you have a working
relationship with her.”
D. “Call your colleague afterwards to ask how she is finding the project and tactfully
mention that at times you found it difficult to understand what she was saying,
politely suggesting that just slowing down a little would help.”
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A. 650 million
B. 700 million
C. 750 million
D. 800 million
E. 850 million
34. If the amount spent on computer imports into the United Kingdom in Year 5 was 20%
lower than in Year 4, what was spent in Year 5?
A. 1,080
B. 1,120
C. 1,160
D. 1,220
E. 1,300
A. 4
B. 5
C. 6
D. 7
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ANSWER SHEET
Full name:
Test:
Mark:
Class code:
Total questions: 35 MCQs
Time: 30 minutes
A B C D A B C D A B C D
1 21 41
2 22 42
3 23 43
4 24 44
5 25 45
6 26 46
7 27 47
8 28 48
9 29 49
10 30 50
11 31 51
12 32 52
13 33 53
14 34 54
15 35 55
16 36 56
17 37 57
18 38 58
19 39 59
20 40 60
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