Revision for Financial Accounting and Reporting

Which of the following refers to a partnership business?

• Limited liability

• Capital contributed by way of ordinary share

• Income from the business is not subject to tax

• Profit or loss is divided among owners and members

What is the main objective of preparing the financial statements?

• to show the value of the shares in the company

• to provide information on financial performance and financial position of a business

• to help management hiring additional work forces

• to show managers the results of their departments

Which of the following items cannot be considered as a revenue?

• Discount received

• Commission received

• Interest on loan

• Dividend on investment

The concept that concern with the significance of currency used when dealing with economics events and agreeable by both parties is

• Going concern concept

• Monetary measurement concept

• Consistency concept

• Accrual concept

The statements below refer to the characteristics of a type of business.

# Widely scattered in Malaysia

# Solely owned business

# Profit gained or loss suffered by the owner itself

Which business meets the above characteristics?

• Public limited company

• Sole proprietorship

• Private limited company

• Partnership

Which of the following refers to a sole proprietorship business?

• Limited liability

• Capital contributed solely by owner

• Share profit or loss among partners

• Income not subject to tax

What is the main objective of accounting?

• to show the value of shares in the company

• to provide information on business activities to interested users

• to help management to plan its business activities

• to show managers the results of their departments

When a business purchase a motor vehicle on credit:

• Assets increase, liability decrease

• Asset decrease, liability increase

• Assets increase, liability increase

• Expense increase, liability increase

The effect for cash sales is?

• Assets increase, liability increase

• Assets increase, revenue increase

• Assets decrease, revenue increase

• Assets increase, revenue decrease

When a business purchase an assets by cash...

• Asset decrease, Liability increase

• Asset increase, liability increase

• Asset increase, asset decrease

• Expenses increase, asset increase