EBAB123 Topic 1

Nurina, an accountant in Ains Ltd thinks that there is a need to assume that business can be operate for only one year.

• Agree - Going Concern Concept

• Disagree - Going Concern Concept

• Disagree - Consistency Concept

• Agree - Consistency Concept

Jasmine felt that an item can be recognised and recorded in financial report must be expressed by Ringgit Malaysia only.

• Agree - Monetary Concept

• Agree - Cost Concept

• Disagree - Monetary Concept

• Disagree - Cost Concept

Daisy withdrew RM25,000 to make additional investment. She used RM500 from cash to pay fee for daughter and recorded as drawing.

• Agree - Going concern Concept

• Disagree - Going concern Concept

• Agree - Entity Concept

• Disagree - Entity Concept

Humaisya thinks that depreciation expenses should be charged and recorded for business’s assets.

• Disagree - Entity Concept

• Agree - Entity Concept

• Agree - Matching Concept

• Disagree - Matching Concept

Adam & Aqeel Inc. bought a land at a price of RM175,000 in 2024. The account manager recorded the value as it is.

• Agree - Matching Concept

• Disagree - Matching Concept

• Disagree - Cost Concept

• Agree - Cost Concept

Perniagaan Naqie thinks that costing inventory method of First In First Out (FIFO) can be changed to Last in First Out (LIFO) at anytime they want.

• Agree - Consistency Concept

• Disagree - Realization Concept

• Disagree - Consistency Concept

• Agree - Realization Concept

2. Arissa Ltd decided to not record an unpaid rental for Dec 2024 until they make a payment.

• Disagree - Accrual Concept

• Agree - Matching Concept

• Agree - Accrual Concept

• Disagree - Matching Concept

Harris Enterprise has miss recorded a purchase of an asset amounted RM500. This asset was found not to have more than one year useful life.

• Agree - Material Concept

• Disagree - Material Concept

• Disagree - Going concern Concept

• Agree - Going concern Concept

Rose decides that there is a need to recognise an amount of booking goods total RM2,500 as a revenue.

• Disagree - Prudence Concept

• Agree - Realization Concept

• Agree - Prudence Concept

• Disagree - Realization Concept

PCK Ltd purchased a building along Saloma Road for RM150m in 2010. Now in 2024, the value of the land has appreciated to RM500m. However, PCK Ltd still records the value of the building as RM150m.

• Disagree - Cost Concept

• Agree - Cost Concept

• Agree - Realization Concept

• Disagree - Realization Concept