ACC030_Chapter 1_Introduction to accounting

Which of the following is NOT part of the definition of accounting?

• Recording

• Summarising

• Concluding

• Classifying

Bookkeeping mainly concerns which part of accounting process?

• Analysing

• Preparing financial statements

• Recording financial information

• Auditing the books of accounts

The financial information provided by an accounting system is needed by:

• Owners

• Creditors

• Customers

• All of the above

"Sorting accounting data into orderly and meaningful manner ". The following statement referring to the process of:

• Classifying

• Recording

• Reporting

• Summarizing

Which of the following users of accounting information is an internal user?

• Creditor

• Tax authorities

• Customer

• Chief operating officer

The type of business where several owners have unlimited liabilities is known as

• Sole proprietorship

• Partnership

• Company

• None of the above

Which of the following is not a characteristic of a company.

• Has an unlimited liability.

• Required to conduct a statutory audit.

• Owned by minimum 1 and maximum 50 shareholders in a private company.

• Governed by Company Act 2016.

Which of the following types of business provide its owners with the advantage of a limited legal liability in cases of insolvency?

• Sole-proprietorship only

• Partnership only

• Company only

• Sole proprietorship and partnership

Which of the following name of the business represent private company?

• Azizul Enterprise

• Ali, Amin & partners

• Aminah Bhd

• Azizah Sdn Bhd

The following statements are correct EXCEPT

• Under sole proprietorship, the owner is responsible for the liabilities of the business when the business goes bankrupt

• The minimum number of members for partnership is two (2)

• The partners of a partnership are not responsible for the partnership liabilities if the partnership bankrupt

• The liability of shareholders of a limited company is limited according to their number of shares possessed in the company