QUIZ 3-AA015 (CHAP 1 & 2)

Accounting is a process of identifying, recording, classifying, summarising, communicating and interpreting the ______?

• managers' alternatives or decisions.

• resulting profits or losses.

• suppliers and customers needs.

• results of business or economic transactions.

Accounting communicates financial information about a business enterprise to both internal and external users.

• True

• False

These questions are most likely to be asked by the internal users except ..

• Do we need to stop the production of this model?

• Can this company still pay its short-term debts?

• Do we need to hold a meeting in the near future to determine the percentage of dividends to be given to our shareholders?

• Do we need to make an immediate decision to lay off some unproductive personnel?

Bookkeeping and accounting are one and the same because the bookkeeping function includes the accounting process.

• True

• False

The type or branch of accounting that generates reports for the use of external parties such as creditors, investors and government agencies is known as..

• Financial Accounting

• Managerial Accounting

• Cost Accounting

• Taxation

Which of the following statements is not true for a 'service' firm/company?

• The company buy merchandise from other company and sell them to the customers with a mark-up value.

• The company provide house-keeping service to its' customers.

• The company provide Legal Advise to its' customers.

• Telekom Malaysia is a service company.

Which financial statements demonstrate the calculation of Net Profit

• Statement of Financial Position

• Statement of Comprehensive Income

• Statement of Cash Flows

• Statement of Owner's Equity

"Issuing new accounting standards to be practiced by all local accountants". This statement is a characteristic of which accounting bodies in Malaysia

• Malaysian Institute of Accountants

• Malaysian Institute of Certified Public Accountants

• Malaysian Accounting Standards Board

• Malaysian Assurance Association

Economic entity concept states that the owner and his company are two different entities. Which is the most related element exist from this concept?

• Assets

• Liabilities

• Withdrawals

• Expenses

Maju Enterprise closed deal with a customer to order a bundle of printed t-shirts for next year event worth RM10,500 but the owner of the t-shirts company didn't record it as sales revenue for the current year. Which concept is followed?

• Materiality Concept

• Consistency Concept

• Revenues Recognition Concept

• Objectivity Concept