Accounting Quiz (3)

What is the core function of the Malaysian Institute of Accountants (MIA)?

• established under the Accountants Act 1967

• regulates, develops, supports, and enhances the integrity, status, and interests of the profession in Malaysia

• formed under the Companies Ordinance 1940/1946

• participates in the setting of international accounting and auditing standards

What is the characteristic of partnership business identity?

• Owned by one individual

• Combines the skills and resources of more than one person.

• Is organized under state or federal statutes as a separate legal taxable entity.

• Jones & Smith, Architects

Ahmed, an entrepreneur, wants to evaluate the financial performance of his business over the past year. Which type of financial statement should he analyze?

• Balance Sheet

• Income Statement

• Cash Flow Statement

• Statement of Owner's Equity

What is the 3 types of business operation?

1) Service business

2) Manufacturing business

3) Merchandising business

• all of above

• 1 only

• 1 and 2 only

• 2 and 3 only

John wants to know his business’s financial position, including its assets, liabilities, and equity. Which financial statement should he refer to?

• Income Statement

• Statement of Cash Flows

• Balance Sheet

• Statement of Owner's Equity

What does GAAP stand for in accounting?

• General Accounting and Auditing Principles

• Generally Accepted Accounting Principles

• Government Accounting and Auditing Procedures

• General Accounting and Assessment Procedures

Which principle requires that revenue is recognized when it is earned and realizable?

• Historical Cost Principle

• Revenue Recognition Principle

• Matching Principle

• Consistency Principle

Which is an example of the cost concept?

• Reporting revenue when cash is received

• Adjusting asset values annually

• Recording purchase price in accounting records

• Applying market valuations

Under the conservatism principle, which action is taken?

• Maximizing reported profits

• Avoiding overstating assets or income

• Reporting all possible gains

• Ignoring minor liabilities

Which of the following are the primary qualitative characteristics of financial statements?

• Relevance and Verifiability

• Faithful Representation and Comparability

• Relevance and Faithful Representation

• Timeliness and Understandability