How many TYPES of accounting users?

• 1

• 3

• 2

• 4

Choose the correct types of profit making business formation

• Sole proprietorships, Partnerships, Corporation & Co-operatives

• Sole proprietorships, Partnerships, Corporation & Government agencies

• Sole proprietorships, Partnerships & Corporation

• Sole proprietorships, Partnerships & Clubs and societies

Choose the correct types of non-profit making business formation

• Clubs and societies, Government agencies & Co-operatives

• Clubs and societies, Government agencies, Co-operatives & Corporation

• Sole proprietorships, Partnerships & Corporation

• Government agencies, Partnerships & Clubs and societies

Choose the characteristics of SOLE PROPRIETORSHIP

• Owners have unlimited liability

• Limited fund raising power

• Transfer of ownership through sale of business

• Enhanced by more owners

Choose the characteristics of PARTNERSHIP

• Owners have unlimited liability

• Limited fund raising power

• Difficult to liquidated or transfer partnership

• Enhanced by more owners

• May have to cover debts of other partners

Choose the characteristics of CORPORATION

• Has better access to financing via sale of ownership i.e. issue of shares

• Limited fund raising power

• Ownership is readily transferable through buying and selling of shares at a stock exchange e.g. Bursa Malaysia

• Owners have limited liability

________________ indicates that personal and business record-keeping should be separately maintained.

• Prudence concept

• Periodicity concept

• Materiality concept

• Entity concept

An amount is considered has a significant effect upon income or the financial position of a business and an omission of such figures will affect to user’s decision. This statement is best suite for

• Materiality concept

• Periodicity concept

• Double-entry concept

• Entity concept

Each business chooses a specific period to complete a cycle of the accounting process—for example, monthly, quarterly, or annually — as per a fiscal or a calendar year.

• Materiality concept

• Periodicity concept

• Double-entry concept

• Entity concept

The non-current assets of a business are recorded on the basis of their original cost in the first year of accounting. Subsequently, these assets are recorded minus depreciation. No rise or fall in market price is taken into account. The concept applies only to non-current assets

• Materiality concept

• Periodicity concept

• Historical cost concept

• Entity concept