Accounting & Finance

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© The Hong Kong Polytechnic University

T HE H ONG K ONG P OLYTECHNIC U NIVERSITY

SCHOOL O F A CCOUNTING AND FINANCE

Final Examination

Programme

BBA (Hons) in Accountancy (02002-BAC)
BBA (Hons) in Accounting and Finance (02002-BAF)

BBA (Hons) in Financial Services (02002-BFS)

BBA (Hons) in Management (02002-MGT)

BBA (Hons) in Marketing (02002-MKT)

BBA (Hons) in Global Supply Chain Management (02002-GSC)

(02004-GSC)
(02004-IST)
BBA (Hons) in International Shipping and Transport Logistics (02002-IST)

BBA (Hons) in Global Supply Chain Management (02002-GSC)

BSc (Hons) in Logistics Engineering & Management (02004-LEMlFLE)

BSc (Hons) Scheme in Computing (61031)

Subject

Financial Accounting (AF21 08)

Date

10 May 2011

Time

2:00 p.m. - 5:00 p.m.

Time Allowed

3 hours

Session

2010/2011 (Semester Two)

This question paper has 2 pages (including this cover page). Instructions to Candidates:
1.

Answer A LL questions.

2.

Total marks: 100

3.

You must submit this question paper together with the answer book at the end o f the examination. Please e nsure y our n ame, s tudent n umber, t utorial n umber a nd t utor n ame a re e ntered p roperly o n b oth t he q uestion p aper a nd a nswer boo~ o therwise, 2 m arks will be deducted.

4.

NO p encil is allowed. I f p encil is u sed, 2 m arks will b e d educted a nd y our p aper will n ot b e available f or y our access a fter t he e xamination.

5.

Please show all workings clearly.

6.

Silent and non-programmable calculator is allowed.

7.

This is a closed book examination.
DO NOT TURN OVER THE PAGE UNTIL YOU ARE TOLD TO DO SO.
L ecture I nfo

W ednesday 1030-1230

T utorial No. ( Time)/Tutor
(e.g. TUT001 1 Sunny S un)
S tudent N ame
S tudent No.

© The Hong Kong Polytechnic University

S ection A E thics'in B usiness A ccounting (20 m arks)
Rocky Company Limited ("RCL") is an international e-commerce company with global customers over 2 millions. The company provides a web-based platform for its customers to solicit the goods through various suppliers. The customers will pay the company for the goods purchased and once their payments are verified and confirmed, the company will advise the corresponding suppliers to release the goods. The customers will check the goods and inform the company that they are satisfied; the company will then release the money to the suppliers. The company also collects a 1-2% handling charges for its services. Recently, RCL receives many complaints from the customers that they have never received the goods but their accounts have been charged. U nda Chan, the assistant accounting manager, investigates the event by comparing its cash receipt journal with the bank statements and note that the company does receive the customers' deposits. However, when she compares the cash payment journal with the bank statements, there are many suspicious amounts paid out in the bank statements but no records in the cash payment journal. Linda then asks Jenny Wong, the bookkeeper, for explanation. Jenny is responsible for banking, recording all cash transactions and preparing the bank reconciliation. Jenny unveils the truth to U nda that she needs a lot o f money to pay for her mother's medical expenses. She has borrowed $150,000 from David Chung, the accounting manager and U nda's supervisor. David asks her to open many fictitious accounts and deposit cash into these accounts. Jenny asks U nda t o forgive her and not to report this case. U nda is very dubious and tells the story to David. David denies and orders U nda to hands·off this matter and leaves it to him. He believes that this will have negative impact on the company's image and may affect the company's share price.

R equired:
1.

What are the ethical issues that U nda i s facing?

(2 marks)

2.

Who are the stakeholders and how are they affected?

(6...
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