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Sapp - Deloitte Entrance Test
Sapp - Deloitte Entrance Test
Using this information, what is the trader's profit for the year ended 30 June 20X6?
A. $126,000
Doing it backward
B. $50,000 =274-186+68-50+20
C. $86,000
D. $90,00
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5. A company sublets part of its office accommodation. In the year ended 30 June 20X5
cash received from tenants was $83,700. Details of rent in arrears and in advance at the
beginning and end of the year were: arrears: money that owed and should be paid earlier
In arrears In
In advance
arrears
$ $
20X4
30 June 20X6 3,800 2,400
20X5
30 June 20X7 4,700 3,000
At the end of this year, we are still owed rent in arrears (4,700) – we
have not had the cash but it is this years income and so it needs adding.
Finally, at the end of this year we had received rent in advance (3,000) –
it is included in the cash received this year, but it is not this years
income. So this needs subtracting.
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7. The figures shown in the table below are an extract from the accounts of Ridgeway
(capital employed is $1.5m).
$
Revenue 1,000,000
Cost of sales 400,000
Gross profit 600,000
Distribution expenses and administration cost 300,000
Profit before interest and tax 300,000
Finance cost 50,000
Profit before tax 250,000
Income tax expense 100,000
Profit after tax 150,000
What is the return on capital employed (ROCE)?
A. 7%
B. 10%
C. 40% Profit before interest and tax /capital employed
D. 20%
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Page 4 of 19
SAPP Academy Tel 096 972 94 63
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12. Tinsel Co has 5 million $1 issued ordinary shares. At 1 May 20X0 Fairy Co purchased 60%
of Tinsel Co’s $1 ordinary shares for $4,000,000. At that date Tinsel Co had net assets
with a fair value of $4,750,000 and a share price of $1.10. Fairy Co valued the non-
controlling interest in Tinsel Co at acquisition as $2,200,000.
What is the total goodwill on acquisition at 1 May 20X0?
A. $1,150,000 Fair value of consideration 4,000
B. $1,750,000 Plus fair value of NCI at acquisition 2,200
Less net acquisition-date fair value of identifiable assets acquired
C. $ 750,000 and liabilities assumed (4,750)
D. $1,450,000 Goodwill 1,450
13. On 1 September 20X6, a business had inventory of $380,000. During the month, sales
totaled $650,000 and purchases $480,000. On 30 September 20X6 a fire destroyed
some of the inventory. The undamaged goods in inventory were valued at $220,000.
The business operates with a standard gross profit margin of 30%.
Based on this information, what is the cost of the inventory destroyed in the fire?
A. $185,000
B. $140,000
C. $405,000
D. $360,000
12.1. Manchester has 10 million $1 issued ordinary shares. At 1 May 20X9 Bristol purchased 70% of
Manchester’s $1 ordinary shares for $8,000,000. At that date Manchester had net assets with a fair
value of $8,750,000 and its share price was $1.20. The non-controlling interest is valued using the
share price at the date of acquisition.
What was the total goodwill arising on acquisition at 1 May 20X9?
A $4,400,000
B $350,000
C $750,000
D $2,850,000
It is simply following the instructions in the question. Bristol bought 70% x 10M = 7M shares, and therefore the NCI own the remaining 30% x 10M = 3M
shares.
The question says that the NCI is to be valued at the share price at the date of acquisition, which is given as $1.20. Therefore the value is 3M shares x $1.20.
SAPP Academy Tel 096 972 94 63
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14. A business received a delivery of goods on 29 June 20X6, which was included in
inventory at 30 June 20X6. The invoice for the goods was recorded in July 20X6.
(i) Profit for the year ended 30 June 20X6 will be overstated.
(ii) Inventory at 30 June 20X6 will be understated.
(iii) Profit for the year ending 30 June 20X7 will be overstated.
(iv) Inventory at 30 June 20X6 will be overstated.
What effect will this have on the business?
A. i and ii
B. ii and iii
C. i only
D. i and iv
15. Which of the following statements about the requirements of VAS 18 Provisions,
Contingent Liabilities and Contingent Assets are correct?
(i) Contingent assets and liabilities should not be recognised in the financial
statements.
(ii) A contingent asset should only be disclosed in the notes to a financial statement
where an inflow of economic benefits is probable.
(iii) A contingent liability may be ignored if the possibility of the transfer of economic
benefits is remote.
A. All three statements are correct
B. i and ii only
C. i and iii only
D. ii and iii only
16. Carter, a limited liability company, has non-current assets with a carrying value of
$2,500,000 on 1 December 20X7.
During the year ended 30 November 20X8, the following occurred:
Depreciation of $75,000 was charged to the statement of profit or loss.
Land and buildings with a carrying value of $1,200,000 were revalued to $1,700,000.
An asset with a carrying value of $120,000 was disposed of for $150,000.
The carrying value of non-current assets at 30 November 20X8 was $4,200,000.
In accordance with VAS 24 Statement of Cash Flows, what net cash flows from the
above transactions would be included within ‘net cash flows from investing activities’
for the year ended 30 November 20X8?
A. $(1,395,000)
B. $(1,365,000) 4200 - (2500 - 75 +500 - 120) = 1395 = purchase of non-current asset
C. $150,000 purchase of non-current asset is a cash outflow (-)
sale of equipment (disposal) (+)
D. $(1,245,000) (1395) + 150 = (1245)
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18. Which of the following costs should be included in valuing inventories of finished goods
held by a manufacturing company, according to VAS 2 Inventories?
(i) Carriage inwards
(ii) Carriage outwards
(iii) Depreciation of factory plant
(iv) Accounts department costs relating to wages for production employees
A. All four items what is carriage inwards and outwards?
- Carriage inwards is an expense that is incurred while transporting goods from
B. ii and iii only the supplier's warehouse to the buyer's warehouse.
- Carriage outwards is the shipping and handling costs incurred by a company
C. i, iii and iv only that is shipping goods to a customer. The company may be able to bill
D. i and iv only customers for this cost; if not, then the company should charge the cost to
expense in the period incurred
19. The increase in net assets is $173, drawings are $77 and capital introduced is $45.
What is the net profit for the year?
A. $295
B. $205 closing net assets = opening net assets+ capital introduced + profit - drawings
profit = movement of net assets - capital introduced + drawings
C. $51
D. $141 profit = 173 - 45 +77 = 205
20. Capital introduced is $50. Profits brought forward at the beginning of the year amount
to $100 and liabilities are $70. Assets are $90.
What is the retained profit for the year?
A. $130 profit
B. $130 loss
C. $10 profit
D. $10 loss
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23. What is the primary difference between fraud and errors in financial statement
reporting?
A. The materiality of the misstatement
B. The intent to deceive
C. The level of management involved
D. The type of transaction effected
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26. The auditor of Z Co has set performance materiality at $100,000. Which of the following
could be the materiality level set for the financial statements as a whole for Z Co?
A. $80,000
B. $95,000
C. $100,000
D. $120,000
27. Due to disruptions caused by the recent transition to a new accounting system, one
month of H Co's inventory records have been lost. The auditors performing the
statutory audit for the twelve-month period have determined that the possible effects
of undetected misstatements could be material, but not pervasive.
What form of audit opinion would the auditor give?
A. Unmodified opinion with an emphasis of matter paragraph
B. Qualified opinion
C. Adverse opinion
D. Disclaimer of opinion
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30. Which of the following financial statement assertions will be supported by a sample
check on the numberical sequence of despatch notes and invoices?
A. Allocation
B. Occurrence
C. Completeness
D. Valuation
33. As an audit team member with two years of experience, you were assigned to carry out
a substantive test on directors’ expenses. The result of the test showed that in several
cases involving the same director, the Chief Financial Officer (CFO) had authorised the
over payment of his expenses. Each expense item was less than the performance
materiality level.
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Which of the following threats would arise from the above scenario, if the project was
accepted by Talland & Co?
A. Advocacy
B. Familiality
C. Self-review
D. Intimidation
35. Which of the following statement are true with respect to use of analytical procedures
in audits?
(1) They are used at the planning stage
(2) They involve tracing transactions from documentation to accounting records
(3) They are used to provide substantive evidence
(4) They are used to provide evidence of the operation of control
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40. Company A is liable to pay value-added tax by the credit method. The added-value
invoice contains the following items:
Selling price: VND 100,000.
VAT (10%): VND 10,000.
Payment price: VND 110,000
What is the turnover for calculating taxable income?
A. VND 110,000
B. VND 100,000
C. VND 111,111
D. VND 90,000
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42. Mrs. C earns an income of 40 million VND from wages and remuneration in the month,
and pay 7% of wages for social insurance premium, 1.5% of wages for health insurance
premium. Mrs. C has 2 children under the age of 18, and makes no charitable donations.
The assessable income of Mrs.C is: - Taxable income of Mrs. C is 40 million VND.
- Mrs. C is eligible for the deductions below:
A. 29.4 million VND + Personal deduction: 9 million VND
+ Deductions for 02 dependants (02 children):
B. 20.4 million VND 3.6 million VND x 2 = 7.2 million VND
+ Social insurance, health insurance:
C. 24 million VND 40 million VND × (7% + 1.5%) = 3.4 million VND
Total deduction:
D. 23.8 million VND 9 million VND + 7.2 million VND + 3.4 million VND = 19.6 million VND
- Assessable income of Mrs. C:
40 million VND - 19.6 million VND = 20.4 million VND
43. Non-business unit A leases a house and earns an annual turnover of VND 100 million. It
cannot determine the cost of and income from this activity, so it chooses to declare and
pay enterprise income tax at a percentage of the turnover from the sale of goods and
services as follows:
A. 2 million VND
B. 5 million VND
C. 1 million VND
D. 25.15 million VND
45. Mr. D directly signs a contract with lottery company X to act as a level I agent of
company X. In 2016, Mr. D receives a total commission of VND 240 million (> VND 100
million). In this case, what is the revenue to calculate tax from lottery agent activities?
A. 100 million VND
B. 240 million VND
C. 140 million VND
D. None of above
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50. How many times did Vietnam participate in FIFA U-20 WorldCup?
A. 0
B. 1
C. 2
D. 3
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53. Which of the following Vietnamese films broke the box office record?
A. Vu em tap su
B. Em chua 18
C. Ve si Sai Gon
D. Bui doi cho lon
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A. 19
B. 20
C. 21
D. 22
58. The present age of Ram is 20 years and of his father is 40 years. How many years ago
the age of his father was three times of his age?
A. 10 years
B. 8 years
C. 6 years
D. 4 years
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ANSWER SHEET
Full name:
Test:
Mark:
Class code:
Total questions: 60 MCQs + 1 essay
Time: 90 minutes
A B C D A B C D A B C D
1 21 41
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3 23 43
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8 28 48
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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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