ACC 4223 - QUIZ 2 - ACCOUNTING FOR LIABILITIES

MFRS 101 Presentation of Financial Statement classifies liabilities into two categories and they must be reported separately in the statement financial position. Which of the following is TRUE?

• Current Assets and Non-Current Assets

• Contingent Liabilities and Contingent Assets

• Provisions

• Current liabilities and non-current liabilities

_______________ is when a company to receive a sum of cash from its customers in advance for services that will be delivered in the future.

• Unearned revenue

• Sales revenue

• Trade payables

• Trade receivables

A ____________________ is a negotiable instrument and it is defined as a written promise by the bond issuer to pay sums of money borrowed from bondholders at a stipulated date agreed by both parties.

• Debenture

• Share

• Bond

• Loan

___________________ are created when an entity requires goods or services from suppliers, and both parties agree that payment is to be delayed to a specific date.

• Trade payables

• Trade receivables

• Accrued expenses

• Prepaid expenses

On 1 April, Ahmad Enterprise purchased goods amounting to RM25,000 from its supplier on credit. The supplier credit term recorded in the invoice is 5/15, n30. Which of the following is the journal entries to record purchase transactions?

• Debit – Purchases RM25,000; Credit – Cash RM25,000

• Debit – Purchases RM25,000; Credit – Trade Payables RM25,000

• Debit – Trade Payables RM25,000; Credit – Purchases RM25,000

• Debit – Cash RM25,000; Credit – Purchases RM25,000

On 1 April, Ahmad Enterprise purchased goods amounting to RM25,000 from its supplier on credit. The supplier credit term recorded in the invoice is 5/15, n30. Which of the following is the journal entries to record the transactions if payment made by Ahmad on 12 April?

• Debit – Trade payables RM25,000; Credit – Cash/Bank RM25,000

• Debit – Trade payables RM25,000; Credit – Cash/bank RM23,750, Discount received – RM1,250

• Debit – Trade Payables RM25,000; Credit – Purchases RM25,000

• Debit – Cash RM25,000; Credit – Purchases RM25,000

On 1 April, Ahmad Enterprise purchased goods amounting to RM25,000 from its supplier on credit. The supplier credit term recorded in the invoice is 5/15, n30. Which of the following is the journal entries to record the transactions if payment made by Ahmad on 22 April?

• Debit – Trade payables RM25,000; Credit – Cash/Bank RM25,000

• Debit – Trade payables RM25,000; Credit – Cash/bank RM23,750, Discount received – RM1,250

• Debit – Trade Payables RM25,000; Credit – Purchases RM25,000

• Debit – Cash RM25,000; Credit – Purchases RM25,000

Bukit Naga Park received RM250,000 online payment in January 2023 for entry tickets to the park throughout the year 2023, the company is preparing the first quarter financial report and it is determined that RM125,000 of the online tickets have been presented over the counters. Which of the following is the journal entries to record the advance payment receipt?

• Debit – Prepaid revenue RM125,000; Credit – Sales Revenue RM125,000

• Debit – Prepaid revenue RM250,000; Credit – Sales Revenue RM250,000

• Debit – Cash/Bank RM250,000; Credit – Prepaid Revenue RM250,000

• Debit – Cash/Bank RM125,000; Credit – Prepaid Revenue RM125,000

Bukit Naga Park received RM250,000 online payment in January 2023 for entry tickets to the park throughout the year 2023, the company is preparing the first quarter financial report and it is determined that RM125,000 of the online tickets have been presented over the counters. Which of the following is the journal entries to record the adjustment in the first quarter?

• Debit – Prepaid revenue RM125,000; Credit – Sales Revenue RM125,000

• Debit – Prepaid revenue RM250,000; Credit – Sales Revenue RM250,000

• Debit – Cash/Bank RM250,000; Credit – Prepaid Revenue RM250,000

• Debit – Cash/Bank RM125,000; Credit – Prepaid Revenue RM125,000

Salam Bhd owes its rental office expenses to its owner amounting RM5,000 at the end of the accounting period. Which of the following is the journal entries to record the transactions?

• Debit – Accrued Rental RM5,000; Credit – Rental expenses RM5,000

• Debit – Rental Expenses RM5,000; Credit – Cash/bank RM5,000

• Debit – Cash/bank RM5,000; Credit – Rental expenses RM5,000

• Debit – Rental expenses RM5,000; Credit – Accrued Rental RM5,000