MK1 5.8.2024 introduction to Accounting

Define the bookkeeping

• It's a process of classifying, recording and summarizing the business transaction.

• Its a process of recording, summarizing and classifying the business transactions.

• It's a process of classifying, summarizing and recording the business transactions.

Which of the following is definition of accounting?

• It's a process of classifying, recording, and summarizing the business transaction in monetary unit, interpretating the data in assist stakeholders in making decision.

• It's a process of recording, classifying, and summarizing the business transaction in monetary unit, interpretating the data in assist stakeholders in making decision.

• It's a process of classifying, recording, and summarizing the business transaction interpreting the data in assist stakeholders in making decision.

Which of the following are accounting concept and principles?

• Historical cost

• Conservatism

• Conjuction

• Accounting period

Separate Business Entity define as

• A business and its owner are two separate entities. The business’s transactions must be accounted separately from the owner’s transactions

• It is assumed that a business will continue to expand and operate in the future without being closed or sold.

• Business activities can be divided into specific periods for example a month, a quarter, six months or a year.

"Haziq Enterprise purchases a lorry worth RM 80,000. For the next year the price of the lorry was reduce to RM 75,000. The value must be recorded is RM 80,000 because it is a cost value."

The above statement referring to which account principles..

• Going Concern

• Historical Cost

• Objectivity

• Full Disclosure

Business should report relevant, reliable, timely, unbiased and free from mistakes or errors information about the business activities.

• Full Disclosure

• Objectivity

• Matching

• Conservatism

Objectivity is the objective that company should achieve in certain accounting period.

• True

• False

In contrast to revenue recognition principles, matching principles provides guidance in recognizing expenses. It main concern is to report the expenses incurred in the same period as of the revenue is actually earned as a result of these expenses.

• Matching

• Conservatism

• Going Concern

Prudence is define as

• Loss must be recorded in accounting while gain only recorded when its happen.

• Loss cannot be recorded in accounting while gain must recorded when its happen.

• Loss and gain must be recorded in accounting report either its happen or not..

Monetary unit

• Monetary unit means we should report all the business transactions or events in monetary units. The monetary value is assumed to be stable.

• Monetary unit means we should report all the business transactions or events in specific accounting time period. The monetary value is assumed to be stable.

• Monetary unit means we should report all the business transactions or events in monetary units. The monetary value is assumed to be unstable.