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WorksheetsTopic 3 Accounting Cycles
Total questions: 50
Worksheet time: 39mins
The recording process occurs
once a year.
once a month.
repeatedly during the accounting period.
infrequently in a manual accounting system.
All of the following are required steps in the accounting cycle except :
journalizing and posting closing entries
preparing financial statements
journalizing the transactions
preparing a worksheet
The proper order of the following steps in the accounting cycle is :
prepare unadjusted trial balance, journalize transactions, post to ledger accounts, journalize and post adjusting entries
journalize transactions, prepare unadjusted trial balance, post to ledger accounts, journalize and post adjusting entries
journalize transactions, post to ledger accounts, prepare unadjusted trial balance, journalize and post adjusting entries
prepare unadjusted trial balance, journalize and post adjusting entries, journalize transactions, post to ledger accounts
A debit is not the normal balance for which of the following?
Asset account
Drawings account
Expense account
Capital account
Issued by the seller to the buyer in the event of a credit transaction.
Invoice
Delivery Notes
Debit Notes
Credit Notes
Purchase Order
Internal documents issued by a business to record any kind of payments.
Invoice
Delivery Notes
Payment Voucher
Credit Notes
Purchase Order
Issued by the buyer to the seller that contains information about the goods to be purchased.
Invoice
Delivery Notes
Payment Voucher
Credit Notes
Purchase Order
Issued by the bank to the account holder at the end of the month.
Receipt
Payment Voucher
Cheque Stubs
Bank Slip
Bank Statement
Issued by the seller to the buyer and delivered together with the goods.
Invoice
Payment Voucher
Cheque Stubs
Delivery Notes
Bank Statement
A form issued by the bank for any transaction of deposits or withdrawals of money from customers.
Bank Statement
Bank Slip
Cheque Stubs
Payment Voucher
Receipt
Issued by the seller to the buyer to inform that his account has been debited in the seller’s books of accounts. (increase debt)
Invoice
Delivery Notes
Debit Notes
Credit Notes
Purchase Order
Issued by the seller to the buyer to inform the buyer that his account has been credited in the seller’s books of accounts (reduce debt.)
Invoice
Delivery Notes
Debit Notes
Credit Notes
Purchase Order
The process of recording a journal entry is called
Recording
Journalizing
Accounting
Transaction
Each transaction can be traced to the types of documents.
Journal
Source documents
Accounting
Transaction
The General Journal is used to
record all receipts and payments
record all purchases of goods
records all cash receipts and cash payments
record adjusting, closing and reversing entries and other transactions not recorded in the specialized journal
After a business transaction has occurred, journal entries are recorded in the:
General ledger
General journal
Statement of comprehensive income
Trial balance
Once journal entries are recorded, they can be posted to :
General ledger
General journal
Trial balance
Statement of comprehensive income
Purchased 10 units of cat’s cage on account from Fluffy Enterprise, RM1,000 perunit, term 2/10, n/30.
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
Paid to Minka Enterprise with cheque to settle all its debt.
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
Owner brought in teak wood shelf for business use, RM3,000.
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
Returned damaged cage to Fluffy Enterprise, RM1,000.
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
Received cheque from Moritz Trading for settlement of all its debt.
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
Sold merchandise to Kedai Muschi, RM14,400, term 2/10, n/30.
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
Paid RM840 transportation expense for merchandise sold with cheque.
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
Purchased lorry for business operation on account RM55,000 from Syarikat Alfie Bhd
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
Purchased accessories set for cash from Perniagaan Tee-gher, RM3,600.
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
The owner gave his son’s a cage worth RM3,400 as a birthday gift.
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
Sold cat accessories shelf for cash to Perniagaan Smudge RM6,400 and give trade discounts RM320.
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
Purchased office supplies for cash from Missy Enterprise, RM3,000.
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
Paid rental expense RM800.
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
A ledger that is summarized in a single general ledger account.
Controlling Ledger
Subsidiary Ledger
Accounts Payable
Sub account
A trial balance is prepared
at the end of each day.
after each journal entry is posted.
at the end of an accounting period.
only at the inception of the business.
Gross profit will result if :
operating expenses are less than net income
net sales are greater than operating expenses
net sales are greater than cost of goods sold
operating expenses are greater than cost of goods sold
Net income equals:
Total revenues minus cost of goods sold
Total revenues minus total expenses
Operating revenues minus operating expenses
Revenue minus expenses plus income taxes
A statement of financial position consists of
assets, liabilities and capital
assets, liabilities, capital and expenses
revenue, drawings, assets and liabilities
revenue, expenses and drawings
A list of assets, liabilities and an owner’s equity of a business entity as of a specific date is known as
a statement of profit or loss
a statement of financial position
a statement of comprehensive income
trial balance
Which of the following are items of Expenses?
salaries, utilities, inventory, discount allowed
salaries, utilities, insurance, discount allowed
salaries, utilities, interest received, discount allowed
salaries, utilities, loan, discount allowed
What is the purpose of the Statement of Financial Position?
inform stakeholders the assets and liabilities of business
provides information on how resources are obtained and used in the business at a point in time
inform stakeholders the owner's equity of business
provides information on how resources are obtained and used and the claim by the owner on the net assets of the business at a point in time
In a classified statement of financial position, assets and liabilities are usually shown in the following order :
current assets, current liabilities, non-current liabilities and non-current assets
non-current liabilities, current liabilities, current assets and non-current assets
non-current liabilities, current assets, current liabilities and non-current assets
non-current assets, current assets, non-current liabilities, and current liabilities
All of the following are included in the Statement of Financial Position, except for?
Profit
Vehicle
Vehicle expenses
Capital
Which of the following statements is correct?
Profit for the year equals the Net Assets
The profit from the Profit or Loss Statement is transferred to the Owner's Equity section of the Statement of Financial Position
Assets plus liabilities equals Net Assets, which is also equal to closing capital
Closing capital = opening bank balance + profit - drawings
These are used by investors, market analysts, and creditors to evaluate a company's financial health and earnings
Statement of Financial Position
Financial Statements
Statement of Comprehensive Income
Cash flows
What is the accounting equation used in the Statement of Financial Position?
Total Assets = Total Income + Equity
Total Assets = Total Loan + Equity
Total Assets = Total Liabilities + Equity
Total Assets = Total Liabilities - Equity
Which of the following is not part of the accounting process?
Recording
Identifying
Financial decision making
Communicating
The first part of the accounting process is
communicating.
identifying.
processing.
recording.
Keeping a systematic, chronological diary of events that are measured in monetary and units is called
communicating.
identifying.
processing.
recording.
The usual sequence of steps in the transaction recording process is
journal --> analyze --> ledger.
analyze --> journal --> ledger.
journal --> ledger --> analyze.
ledger --> journal --> analyze.
The first step in the recording process is to
prepare financial statements.
analyze each transaction for its effect on the accounts.
post to a journal.
prepare a trial balance.
The following items are recorded in the general journal except :
purchase of non-current assets on credit
purchase of goods on credit from supplier
withdrawal of goods by the owner for personal used
opening entries, adjusting entries and closing entries
Norzehan, a trader issued a debit note to her supplier, Kedai Runcit Awie, because she returned some damaged goods worth RM150. On receiving the debit note, Kedai Runcit Awie would
debit sales returns accounts and credit Norzehan account
debit Norzehan accounts and credit purchase returns account
debit purchase returns account and credit Norzehan account
debit Norzehan account and credit sales returns account
