Accounting Theories

Identify the relevant accounting theory.

The need to record withdrawals of business assets by the owner for his personal use.

(a)  

Identify the relevant accounting theory.

Inventory is valued the the lower of cost and net realisable value.

(a)  

Identify the relevant accounting theory.

The motor vehicles of a business are depreciated at 20% per annum on a reducing-balancing method since the business started.

(a)  

Identify the relevant accounting theory.

Source documents are required in the recording of business transactions.

(a)  

Identify the relevant accounting theory.

Only information that are likely to make a difference to the decision-making process should be recorded.

(a)  

Identify the relevant accounting theory.

Only business transactions that can be measured in monetary terms are recorded.

(a)  

Which of the following are considered as part of the inventory cost?

Choose 2

• Import duties

• Salaries of salesperson

• Freight charge to transport the goods to customers

• Insurance cost when buying from supplier

Which of the following business form is most likely to face difficulties in trying to raise fund?

• Sole Proprietorship

• Limited Liability Partnership

• Private Limited Company

Which business form requires its owner to pay off the business' liabilities using his own personal asset when in bankruptcy?

• Sole Proprietorship

• Limited Liability Partnership

• Private Limited Company

Which business form has the most formalities and regulatory procedures to follow?

• Sole Proprietorship

• Limited Liability Partnership

• Private Limited Company