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(ACCT202)[2011](s)final~1406^_63832.pdf
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ACCT 202 Financial Accounting II Spring 2011 Final Exam
Date: May 23, 2011 (Monday) Time: 8:30am C 10:30am (2 Hours)
This exam paper contains TEN (10) pages (including this cover page).
Instructions:
1.
This is a CLOSED book examination.

2.
This exam contains 15 MC questions and 5 problems. ALL questions are compulsory.

3.
Answer all questions in the answer booklet provided.

4.
Write your name, student number, and lecture section number (L1: Tue & Thu 16:30-17:50; L2: Tue & Thu 13:30-14:50) on the cover of the answer booklet.

5.
START EACH QUESTION ON A NEW PAGE. Indicate the question no clearly.

6.
SHOW YOUR WORKINGS. If you do not show your workings, you may not receive full credit for a correct answer and you will not receive any partial credit for an incorrect answer.

7.
Materials, aids and instruments allowed during the examination: electronic calculators ONLY.

8.
Budget your time wisely. You have 120 minutes to get a maximum of 120 marks. On average, use 1 minute to get every 1 mark.

9.
You may keep this exam paper. Answers will be released on LMES after the exam. Please report any problem in the answers immediately.


TURN OFF YOUR MOBILE PHONES!!!


Instructions: Answer all MC questions on the FIRST PAGE of the Answer Booklet. Answer each question on a NEW LINE. You are suggested to spend about 2 minutes on each question.
1. ABC Ltd has 10,000 shares of common stock ($1 par) issued and outstanding. They were issued at par. ABC repurchased 5,000 shares of the common stock. The repurchase was financed partly by issuing 2,000 new preference shares ($1 par) at $1 per share. How much should be transferred from retained earnings to capital redemption reserve?
A. $0
B. $2,000
C. $3,000
D. $5,000
2. Liquidating dividends
A. Are prohibited under IFRS.
B. Require a credit to Share CapitalOrdinary.
C. Reduce amounts paid-in by shareholders.
D. All of the choices are correct.
3. Quirk Corporation issued a 100% share dividend of its ordinary shares which had a par value of $10 before and after the dividend. At what amount should retained earnings be transferred to contributed capital for the additional shares issued under US GAAP?
A. There should be no capitalization of retained earnings.
B. Par value
C. Fair value on the declaration date
D. Fair value on the payment date
4. Under US GAAP, the issuer of a 5% ordinary share dividend to ordinary shareholders preferably should transfer from retained earnings to contributed capital an amount equal to the
A. fair value of the shares issued.
B. book value of the shares issued.
C. minimum legal requirements.
D. par or stated value of the shares issued.
5. In Hong Kong, the issuer of a 5% ordinary share dividend to ordinary shareholders should transfer from share premium / retained earnings to contributed capital an amount equal to the
A. fair value of the shares iss