Financial Accounting Revision

Which of the following best describes the purpose of accounting and bookkeeping?

• Misleading can be avoided

• Presenting the financial status, and profit and loss of a business

• Easy to refer

• All above

Which flow from the list below illustrates the accounting cycle?

• Identifying - Classifying - Recording - Summarizing - Reporting - Analyzing

• Identifying - Recording - Classifying - Summarizing - Reporting - Analyzing

• Identifying - Recording - Classifying - Reporting - Summarizing - Analyzing

• Identifying - Recording - Summarizing - Classifying - Reporting - Analyzing

Which of the following is an external user of accounting information?

• Government

• Managers

• Business owners

• Employees

There are many different types of business organizations, including

• Sole proprietorship

• Entrepreneurship

• Partnership

• Company

This concept implies that the economic activities of a business can be divided into certain periods; monthly, quarterly, or yearly.

• Monetary

• Economic entity

• Going concern

• Periodicity

Which of the following statement is FALSE regarding the accounting concepts

• Going concern assumes that a business will continue for a long time

• Historical cost requires that assets to be recorded at cost

• Economic entity assumes that a business should include the transactions of the its owner

• Matching concept requires the revenue and cost to be matched

The following characteristics should be present in the accounting information, EXCEPT

• Accessibility

• Consistency

• Reliability

• Relevance

The primary objective of the Malaysia Accounting Standard Board is to

• review the performance of the Board

• promote the integrity and competence of certified public accountants

• approve the budget of the board

• issue accounting standard for financial statement

What is the basic accounting equations?

• Assets = Liabilities + Capital

• Assets = Liabilities - Capital

• Asset + Liabilities = Capital

• Assets + Capital = Liabilities

Which side should be used to record an increase in liabilities?

• Debit

• Credit

• Debit and credit