NEW
Font size
WorksheetsAccounting 1
Total questions: 30
Worksheet time: 26mins
Accounting is a process of recording, classifying, summarising and interpreting business activities for
performance evaluation.
decision making.
disburse salary.
investment.
Bookkeeping
is only limited to the recording.
requires more technical understanding an advance accounting procedures.
performed by accounting graduates.
comprises complex accounting task.
Followings are internal users of accounting information EXCEPT
manager
owner
creditor
employee
Bankers or creditors need financial statements of clients
to evaluate the wisdom of buying, holding or selling their shares.
to know whether the company could provide warranties for the product purchased.
to know amount of profit made to compute tax.
to evaluate the risk of granting credit or lending money.
Sole proprietorship is a business owned and managed by
two to twenty individuals
one individual
unlimited members
one to fifty individuals
Following business owners has unlimited liability EXCEPT
Sole proprietorship
partnership
company
none of the above
An allowance for doubtful debt is based on the
consistency concept
objectivity concept
accrual concept
prudence concept
Murni Trading own three acres of land which costed RM5million and current market value is RM8million. Based on the historical concept the amount reported in financial statement is?
RM8million
RM5 million
RM6 million
RM 7 million
A business pays for the owners personal life insurance policy and the amount is considered as a business item. This is in accordance with the
prudent concept
money measurement concept
economic or business entity
matching concept
Which of the following item is classified as current asset?
Machinery
Motor Vehicle
Computer
Inventory
Liability is known as
an obligation to pay to the creditors
economic items own by the business
debt that must be settled by debtors
unearned revenues
A non-current asset has the following features EXCEPT?
Higher value
Longer holding period
functions for a short term
Used to generate profit
Which of the following item is known as money invested by an owner?
Bank
Capital
Cash
Rental income
____________ is an expense to the business.
Sales
Rental income
Advertisement
Commission received
All the items listed below are current assets EXCEPT
Account Receivable
Account Payable
Cash
Prepaid insurance
Account Receivable is _________________________________.
amount due to firm for goods and services delivered
company's obligation to pay off a short-term debt to its creditors or suppliers
amounts due to vendors or suppliers for goods or services received
increase or decrease in total Ac payable from the prior period
On 1 Jan 2018, Ahmad purchased goods worth RM2,000 on credit. The double entries for Ahmad's account is____.
Dt Cash/ Cr.Purchase
Dt. Creditors/ Ct. Purchase
Dt Purchase/ Ct. Debtors
Dt Purchase/ Ct. Creditors
On 10 Jan 2018, Ali paid RM 700 cash for advertisement expense. Find the correct doubt entry.
Dt. Cash / Ct. Advertisement
Dt. Advertisement / Ct. Cash
Dt Cash / Ct. Expense
Dt. Capital / Ct. Ac payable
Owner took business goods for personal use refer as ....
Purchase
inventory
drawing
goods
Ahmad paid creditor RM10,000 by cheque to settle the full debt. By using accounting equation, find increase or decrease of amounts in the related accounts.
Creditor and bank increase
Creditor and bank decrease
Debtor and bank increase
Debtor and bank decrease
On 2017, Dinesh bought a Vehicle amounting RM50,000. If the depreciation charge is 15% on cost. How much is the depreciation expense?
RM5,000
RM7,500
RM2,000
RM2,500
A machinery was bought at RM100,000. It has been used for 3 years. If the depreciation value is 10% using reducing balance method, how much is the accumulated depreciation cost?
RM20,000
RM27,100
RM30,000
RM10,000
Select the correct depreciation method for the following formula:
(Cost - Accumulated dep) x %
Straight line method
Reducing balance method
Unit production method
Double declining method
Which of the following is correct reason of an asset to depreciate in value?
increase in market value
Wear and tear
increase in currency
formation of goodwill
Which of the following is a Correct formula for straigh line method?
Cost x % residual value
(Cost - Residual value) x years
(Carrying value ) x % dep
(Cost - Residual value) x % dep
A building with cost RM1,000,000 was bought on 1 January 2016. The depreciation value is 5% on cost. Find the depreciation expense and accumulated depreciation amount as per year end 31 December 2019.
RM60,000 & RM300,000
RM40,000 & RM200,000
RM50,000 & RM200,000
RM10,000 & RM100,000
Residual value meaning ________.
selling price of an asset after some time
the current price of an asset
the carrying value of an asset
the cost of an asset upon purchase date
Accumulated depreciation is ________________.
the cumulative depreciation of an asset up to a single point in its life.
the depreciation value of current year.
the depreciation value of previous year
the cumulative value of an asset
Which of the following is not a reason for depreciation?
obsolescence
wear and tear
passing of time
changes in value
Depreciation expense and Accumulated depreciation have to be recorded in _____________.
Expense & Revenue
Expense & Current Asset
Expense & Non Current Asset
Revenue & Current Asset
