CHAPTER 1 & 2

Which of the following is not included as accounting concepts?

• Simplicity

• Materiality

• Consistency

• Going Concern

The accounting standards in Malaysia are issued by

• Malaysian Accounting Standard Board

• Malaysian Finance Association

• Malaysian Institute of Auditors

• Malaysian Accountant Association

Which process would make accounting different from bookkeeping?

• Interpreting

• Classifying

• Recording

• Summarising

Which of the following is the disadvantage of sole trader?

• Lack of continuity

• Disagreement

• Greater control

• Reporting is required

Which of the following are the external users of financial statements?

i. Bank officer

ii. Supervisor

iii. Tax authorities

iv. Owner

• i and iii

• ii and iv

• i, iii and iv

• i, ii and iii

The characteristics of a business are as follows:

i. The capital is contributed by each person who formed the business.

ii. The creditors have the right against the owner's personal properties when the

assets are not enough to cover the debt.

iii. No obligation to keep the books and prepare accounts.

iv. Managed and controlled by owners who consist of a few people.

Which of the following business is suitable with the above characteristics?

• Partnership

• Sole proprietorship

• Company with 'Bhd'

• Company with 'Sdn Bhd'

An accountant should record revenue as it earned even if cash has not been received at the end of the accounting period. This statement complies with the?

• Accrual based concept

• Entity concept

• Prudence concept

• Consistency concept

Given the amount of premises RM20,000, inventory RM8,500, cash RM200, account payable RM3,000 and loan RM4,000. What is the amount of capital?

• RM21,700

• RM32,700

• RM29,700

• RM21,400

En Rizky, the owner of Rizky Enterprise has invested RM27,000 into the business bank account. What are the effects to the accounting equation?

• Both Bank and Capital increase

• Both Bank and Capital decrease

• Bank decrease and Capital increase

• Bank increase and Capital decrease

Which of the following would be classified as an intangible asset?

• All of them

• Goodwill

• Trademark

• Pattern