Past Paper of F3
Fundamentals Pilot Paper – Knowledge module
Financial Accounting (International)
Time allowed: 2 hours ALL FIFTY questions are compulsory and MUST be attempted.
Do NOT open this paper until instructed by the supervisor. This question paper must not be removed from the examination hall.
The Association of Chartered Certified Accountants
Paper F3 (INT)
ALL 50 questions are compulsory and MUST be attempted Please use the Candidate Registration Sheet provided to indicate your chosen answer to each multiple choice question.
1
Should details of material adjusting or material non-adjusting events after the balance sheet date be disclosed in the notes to financial statements according to IAS 10 Events After the Balance Sheet Date? A B Adjusting events Non-Adjusting events (1 mark)
2
At 30 June 2005 a company’s allowance for receivables was $39,000. At 30 June 2006 trade receivables totalled $517,000. It was decided to write off debts totalling $37,000 and to adjust the allowance for receivables to the equivalent of 5 per cent of the trade receivables based on past events. What figure should appear in the income statement for the year ended 30 June 2006 for these items? A B C D $61,000 $22,000 $24,000 $23,850 (2 marks)
3
In times of rising prices, what effect does the use of the historical cost concept have on a company’s asset values and profit? A B C D Asset values and profit both understated Asset values and profit both overstated Asset values understated and profit overstated Asset values overstated and profit understated. (2 marks)
4
The IASB’s Framework for the preparation and presentation of financial statements gives qualitative characteristics that make financial information reliable. Which of the following are examples of those qualitative characteristics? A B C D Faithful Representation, neutrality and prudence Neutrality, comparability and true and fair view Prudence, comparability and accruals Neutrality, accruals and going concern (2 marks)
Financial Accounting (International)
Time allowed: 2 hours ALL FIFTY questions are compulsory and MUST be attempted.
Do NOT open this paper until instructed by the supervisor. This question paper must not be removed from the examination hall.
The Association of Chartered Certified Accountants
Paper F3 (INT)
ALL 50 questions are compulsory and MUST be attempted Please use the Candidate Registration Sheet provided to indicate your chosen answer to each multiple choice question.
1
Should details of material adjusting or material non-adjusting events after the balance sheet date be disclosed in the notes to financial statements according to IAS 10 Events After the Balance Sheet Date? A B Adjusting events Non-Adjusting events (1 mark)
2
At 30 June 2005 a company’s allowance for receivables was $39,000. At 30 June 2006 trade receivables totalled $517,000. It was decided to write off debts totalling $37,000 and to adjust the allowance for receivables to the equivalent of 5 per cent of the trade receivables based on past events. What figure should appear in the income statement for the year ended 30 June 2006 for these items? A B C D $61,000 $22,000 $24,000 $23,850 (2 marks)
3
In times of rising prices, what effect does the use of the historical cost concept have on a company’s asset values and profit? A B C D Asset values and profit both understated Asset values and profit both overstated Asset values understated and profit overstated Asset values overstated and profit understated. (2 marks)
4
The IASB’s Framework for the preparation and presentation of financial statements gives qualitative characteristics that make financial information reliable. Which of the following are examples of those qualitative characteristics? A B C D Faithful Representation, neutrality and prudence Neutrality, comparability and true and fair view Prudence, comparability and accruals Neutrality, accruals and going concern (2 marks)