ACC117 Part B

Which of the following best describes the management and control of a Limited

Company.

• Managed and controlled by the owner.

• Managed and controlled by partners or by a board which consists of a few

  partners.

• Managed and controlled by a board of directors appointed by the

  shareholders.

• Managed and controlled by members of society.

______________ refers to a phase where financial statements are analyzed, and

the result of the analysis is used as a guide for users to make decisions.

• Classifying

• Recording

• Summarizing

• Interpreting

The purpose of recording and analyzing accounting information of an organization

are as follows EXCEPT_____.

• To provide future financial information.

• To provide easier financial reference.

• To avoid misleading financial statements.

• To know the financial status of the organization.

The type of users that are interested in the establishment of good accounting

controls in a business as a means of reducing cost of production, selling and

distribution and, hence, the reduction of the prices of the goods they purchase

would be ______.

• Owners

• Consumers

• Government

• Suppliers

Companies that record the withdrawal of goods by the owner as drawings in the

business books of accounts follow ________ concept.

• Business entity

• Going concern

• Money measurement

• Historical cost

FOUR (4) qualitative characteristics to enhance the usefulness of financial

statements are _____________.

• Comparability, verifiability, neutrality, and understandability

• Understandability, timeliness, comparability, and verifiability

• Comparability, verifiability, completeness, and understandability

• Timeliness, materiality, verifiability, and understandability

Financial information is considered relevant if it has __________.

• Both predictive value and confirmatory value

• Either predictive value or confirmatory value or both

• Only predictive value

• Only confirmatory value

ZZ Berhad records the value of its machine at the amount it was first acquired 3

years ago. This is in line with a/an _______ concept.

• Going concern

• Historical cost

• Economic entity

• Money measurement

Debts owed to the business by customers are classified as ___________.

• Asset

• Expenses

• Liability

• Owner’s equity

A sales return should be ___________.

• Debited to Sales Account

• Credited to Sales Return Account

• Debited to Sales Return Account

• None of the above