Closing meansreseting revenue, expense, and withdrawal account balances to zero at the end of the period.（）

The revenue, expense, and drawing accounts are ______ used in classifying and summarizing changes in capital during the accounting period.

A．temporary accounts

B．permanent accounts

C．income summary

D．terminal accounts

The exhibition is held ______our own expense and______ last year's prices. ( )

A．for, at

B．for, with

C．at, at

D．for, for

When the expected tax rate changes, deferred tax:

A.expense is calculated using current tax rates with no adjustments.

B.liability and asset accounts are adjusted to reflect the new expected tax rate.

C.liability and asset accounts are maintained at historical tax rates until they reverse.

within, for, between, out, in, forward, to, with, by, at

Terms in Technical Contract

  The Buyer agrees that the Seller will carry(1)the design, selection of material manufacturing, inspection and test of the equipment and materials supplied by the Seller according(2)the existing standards and codes of the Seller' s country． (3) one and a half months after signing the Contract, the Seller shall airmail(4)his own expense to the Buyer the said standards and codes(5)six copies．These documents shall be delivered in English as far as possible and the rest in German．The standards and codes shall be with indication of item numbers of the equipment and materials．The Buyer shall put(6)his comments(7)reference to the submitted standards and codes during the preliminary design meeting and the final agreement reached

(8)both parties through discussion shall be regarded as the basis for the inspection and test of the equipment and materials.

  All the equipment and materials supplied(9)the Seller shall be inspected by the Seller and quality certificates and inspection and test records shall be issued by the manufacturers or the Seller．These documents shah be delivered to the Buyer as certificates of quality guarantee in accordance with the Contract．All expenses involved in the inspection and test of the equipment and materials shall be(10)the Seller's account.

Section B

Directions: There are 2 passages in this section. Each passage is followed by some questions or unfinished statements. For each of them there are four choices marked A, B, C and D. You should decide on the best choice.

It's never easy to admit you are in the wrong. Being human, we all need to know the art of apologizing. Look back with honesty and think how often you' ye judged roughly, said unkind things, pushed yourself ahead at tire expense of a friend. Then count the occasions when you indicated clearly and truly that you were sorry. A bit frightening, isn't it? Frightening because some deep wisdom in us knows that when even a small wrong has been committed, some mysterious moral feeling is disturbed; and it stays out of balance until fault is acknowledged and regret expressed.

I remember a doctor friend, the late Clarence Lieb, telling me about a man who came to him with a variety of' signs: headaches, insomnia and stomach trouble. No physical cause could be found. Finally Dr. Lieb said to the man, "Unless you tell me what's worrying you, f can't help you".

After some hesitation, the man confessed that, as executor of his father' s will, he had been cheating his brother, who lived abroad, of his inheritance. Then and there the wise old doctor made the man write to his brother asking forgiveness and enclosing a cheque as the first step in restoring their good relation. He then went with him to the mail box in the corridor. As the letter disappeared, the man burst into tears. "Thank you, "he said, "I think I'm cured. "And he was.

A heart felt apology can not only heal a damaged relationship but also make it stronger. If you can think of someone who deserves an apology from you, someone you have wronged, or judged too roughly, or just neglected, do something about it right now.

When we have done something wrong, we should______.

A．look honest and think over the fault carefully

B．escape from being disturbed

C．admit the fault and express the regret

D．forgive ourselves

Section B

Directions: In this section, you will hear 3 short passages. At the end of each passage, you will hear some questions. Both the passage and the questions will be spoken only once. After you hear a question, you must choose the best answer from the four choices marked A, B, C and D.

听力原文： Most likely, you aren't the family breadwinner. But doing a small job or getting a weekly allowance would put some money in your pocket. For kids and grown-ups alike, money is easy to spend. If you aren't careful, it can be gone in no time.

Being responsible with your money is an important skill to learn-and the sooner you start the better. Whether you are tracking your spending or saving for something special, creating a budget can help you deal with your expenses and plan for the future. All you need are paper and a pencil-and some self-control.

First, take a look at our sample monthly budget. Then, use a separate sheet of paper to plan your own. In the first two columns, list your sources of income and how much you expect to earn from them. In the third and fourth columns, list what you expect to spend your money on and the amount.

The left-hand total should be more than or equal to the right-hand total. If it is, you have an effective budget.

Budgets are not complex, but sticking to them can be tough. When planning your budget, be realistic about your expenses. If you know that you drop $18 at a movie, don't write $12 in that space simply because you wish you were spending less.

If you are eyeing a big purchase, such as a $150 skateboard, spend less and save more until you have the total amount. No matter how attractive it may be, avoid spending your savings. One day, you will thank yourself!

(27)

A．Parents.

B．Children.

C．Breadwinners.

D．Bank managers.

Scramble, a public limited company, is a developer of online computer games.

(a) At 30 November 2011, 65% of Scramble’s total assets were mainly represented by internally developed intangible assets comprising the capitalised costs of the development and production of online computer games. These games generate all of Scramble’s revenue. The costs incurred in relation to maintaining the games at the same standard of performance are expensed to the statement of comprehensive income. The accounting policy note states that intangible assets are valued at historical cost. Scramble considers the games to have an indefinite useful life, which is reconsidered annually when the intangible assets are tested for impairment. Scramble determines value in use using the estimated future cash flows which include maintenance expenses, capital expenses incurred in developing different versions of the games and the expected increase in turnover resulting from the above mentioned cash outflows. Scramble does not conduct an analysis or investigation of differences between expected and actual cash flows. Tax effects were also taken into account. (7 marks)

(b) Scramble has two cash generating units (CGU) which hold 90% of the internally developed intangible assets. Scramble reported a consolidated net loss for the period and an impairment charge in respect of the two CGUs representing 63% of the consolidated profit before tax and 29% of the total costs in the period. The recoverable amount of the CGUs is defined, in this case, as value in use. Specific discount rates are not directly available from the market, and Scramble estimates the discount rates, using its weighted average cost of capital. In calculating the cost of debt as an input to the determination of the discount rate, Scramble used the risk-free rate adjusted by the company specific average credit spread of its outstanding debt, which had been raised two years previously. As Scramble did not have any need for additional financing and did not need to repay any of the existing loans before 2014, Scramble did not see any reason for using a different discount rate. Scramble did not disclose either the events and circumstances that led to the recognition of the impairment loss or the amount of the loss recognised in respect of each cash-generating unit. Scramble felt that the events and circumstances that led to the recognition of a loss in respect of the first CGU were common knowledge in the market and the events and the circumstances that led to the recognition loss of the second CGU were not needed to be disclosed. (7 marks)

(c) Scramble wished to diversify its operations and purchased a professional football club, Rashing. In Rashing’s financial statements for the year ended 30 November 2011, it was proposed to include significant intangible assets which related to acquired players’ registration rights comprising registration and agents’ fees. The agents’ fees were paid by the club to players’ agents either when a player is transferred to the club or when the contract of a player is extended. Scramble believes that the registration rights of the players are intangible assets but that the agents fees do not meet the criteria to be recognised as intangible assets as they are not directly attributable to the costs of players’ contracts. Additionally, Rashing has purchased the rights to 25% of the revenue from ticket sales generated by another football club, Santash, in a different league. Rashing does not sell these tickets nor has any discretion over the pricing of the tickets. Rashing wishes to show these rights as intangible assets in its financial statements. (9 marks)

Required:

Discuss the validity of the accounting treatments proposed by Scramble in its financial statements for the year ended 30 November 2011.

The mark allocation is shown against each of the three accounting treaments above. Professional marks will be awarded for clarity and expression of your discussion. (2 marks)

Which of the following would you expect to find in a correctly prepared income statement?

A．Cash balance at the end of the period

B．The reported company's financial position at a specific date

C．Contributions by the owner during the period

D．Expenses incurred during the period to earn revenues