Final Exam

INSTRUCTIONS SHEET

1. This exam paper comprises three (3) Parts: A, B & C.

2. Part A is worth 15 marks. Answer all questions in this part. These are of equal value – one (1) mark each.

3. Part B is worth 16 marks. Answer the one (1) compulsory question from this part.

4. Part C is worth 39 marks. Answer three (3) of the four (4) practical questions from this part. These are of equal value – 13 marks each. If more than three questions are answered, only the first three will be marked.

5. Write answers in the Examination Answer Booklet provided.

PART A 15 MARKS

MULTIPLE CHOICE QUESTIONS

Students are to answer ALL questions from this part

Each question is worth 1 mark (15 x 1= 15 marks)

Write down only one answer per question. Answers should be written in the examination answer booklet as per the example below.

Example: 1(a)

2(b)

3(c)

Question 1

As the Urgent Issues Group (UIG) is now defunct, interpretations issued by it are no longer enforceable under law.

a) True

b) False

Question 2

If a company uses its surplus cash reserves to buy-back its own shares, the total equity of the company will increase by the equivalent amount of cash spent.

a) True

b) False

Question 3

Any under-provision of tax is adjusted against the current year’s income tax expense or retained earnings, depending on the nature or cause of the under-provision.

a) True

b) False

Question 4

Goodwill may only be recognised as an intangible asset when it is acquired as part of a business combination.

a) True

b) False

Question 5

The Norwalk Agreement, signed on 29 October 2002:

a) requires the FASB to adopt international accounting standards by 1 January 2009.

b) requires the FASB and IASB to work together towards one set of compatible global standards.

c) allows non-US companies to issue financial statements in the US which are prepared in accordance with international accounting...