Basic Accounting

The accounting process is correctly sequenced as ______

• Identification, communication, recording

• Recording, communication, identification

• Identification, recording, communication

• Communication, recording, identification

The following are external users of accounting information EXCEPT __________

• Government agencies

• Customers

• Suppliers

• Management

Assets which are purchased for the purpose of operating the business and not for resale are called ______.

• Current assets.

• Non-current assets.

• Intangible assets.

• Liquid assets.

Which of the following statement is INCORRECT?

• Assets – Capital = Liabilities

• Liabilities + Assets = Capital

• Assets – Liabilities = Capital

• Liabilities + Capital = Assets

Which of the following items is NOT current asset?

• Bank

• Inventory

• Accounts payable

• Accounts receivable

Loan from CIMB Bank account is classified under _______________.

• Asset

• Liability

• Capital

• Expense

The total assets of Leema Enterprise are RM1,500,000 and the total equity is half of its total assets. What is the total amount of liability?

• RM0

• RM500,000

• RM750,000

• (RM750,000)

The owner invested RM30,000 cheque to start the business. This transaction will increase the capital account and increase _______________.

• Cash account

• Bank account

• Expense account

• Revenue account

What is the effect if cash in hand were deposited into the business’s bank?

• Cash increase, Bank decrease

• Cash decrease, Asset increase

• Bank increase, Cash decrease

• Asset decrease, Cash increase

Using the accounting equation, what is the total amount of capital for the above Table 1?

• RM23,200

• RM25,000

• RM25,700

• RM26,000