QUIZ 1-AA015 (CHAP 1 & 2)

___________ is the process of identifying, recording and classifying, summarizing, analysing and interpreting business transaction.

• Bookkeeping

• Transaction

• Accounting

• Financing

Which one of the following is not an external user of accounting information?

• Investors

• Creditors

• Managers

• Customers

“To access the capability of the business in repaying debts or loans”. The statement refer to?

• Potential investors

• Creditors

• Government Agencies

• Auditor

Which one is true about bookkeeping?

• Is an information system

• Is the responsibility of the managers

• Is more extensive and thorough work

• Is a part of accounting

Define what are sole proprietorship is?

• A business with more than 1 owner.

• A business with large number of shareholders.

• A business with one owner who takes full responsibility.

• A business that distribute profit/losses among partners.

_____________ is a financial statement that reports business’s asset, liability and owner equity on a specific date.

• Statement of Cash Flows

• Statement of Owner's Equity

• Statement of Financial Position

• Statement of Comprehensive Income

Which one is not an accounting bodies in Malaysia.

• MAA

• MICPA

• MIA

• MASB

Generally accepted accounting principles are...

• Income tax regulations of the Internal Revenue Service or LHDN in Malaysia.

• Standards that indicate how to report economic events.

• Theories that are based on the physical laws of the universe.

• Principles that have been proven correct by academic researchers.

Which concept is applied when a source document is prepared for each transaction?

• Objectivity concept.

• Going concern concept.

• Full disclosure concept.

• Materiality concept.

Purchase of small and cheap equipment is treated as an operational expense, according to the concept of

• Revenue recognition concept.

• Expense recognition concept.

• Consistency concept.

• Materiality concept.