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Revision for Financial Accounting and Reporting

Total questions: 23

Worksheet time: 46mins

Name
Class
Date
1.

Which of the following refers to a partnership business?

a)

Limited liability

b)

Capital contributed by way of ordinary share

c)

Income from the business is not subject to tax

d)

Profit or loss is divided among owners and members

2.

What is the main objective of preparing the financial statements?

a)

to show the value of the shares in the company

b)

to provide information on financial performance and financial position of a business

c)

to help management hiring additional work forces

d)

to show managers the results of their departments

3.

Which of the following items cannot be considered as a revenue?

a)

Discount received

b)

Commission received

c)

Interest on loan

d)

Dividend on investment

4.

The concept that concern with the significance of currency used when dealing with economics events and agreeable by both parties is

a)

Going concern concept

b)

Monetary measurement concept

c)

Consistency concept

d)

Accrual concept

5.

The statements below refer to the characteristics of a type of business.


# Widely scattered in Malaysia

# Solely owned business

# Profit gained or loss suffered by the owner itself


Which business meets the above characteristics?

a)

Public limited company

b)

Sole proprietorship

c)

Private limited company

d)

Partnership

6.

Which of the following refers to a sole proprietorship business?

a)

Limited liability

b)

Capital contributed solely by owner

c)

Share profit or loss among partners

d)

Income not subject to tax

7.

What is the main objective of accounting?

a)

to show the value of shares in the company

b)

to provide information on business activities to interested users

c)

to help management to plan its business activities

d)

to show managers the results of their departments

8.

When a business purchase a motor vehicle on credit:

a)

Assets increase, liability decrease

b)

Asset decrease, liability increase

c)

Assets increase, liability increase

d)

Expense increase, liability increase

9.

The effect for cash sales is?

a)

Assets increase, liability increase

b)

Assets increase, revenue increase

c)

Assets decrease, revenue increase

d)

Assets increase, revenue decrease

10.

When a business purchase an assets by cash...

a)

Asset decrease, Liability increase

b)

Asset increase, liability increase

c)

Asset increase, asset decrease

d)

Expenses increase, asset increase

11.

Which type of business organization has a separate legal entity from its owner?

a)

Sole proprietorship

b)

Partnership

c)

Limited company

d)

None of the above

12.

The owner of business purchase a motor van for his private use and it is not been recorded in the business account. Which accounting concept did it follow?

a)

Monetary measurement concept

b)

Consistency concept

c)

Business entity concept

d)

Materiality concept

13.

Users of accounting information is?

a)

Potential Investors

b)

Suppliers

c)

Management

d)

All of the above

14.

Which of the following is classified as TANGIBLE ASSET? (Can choose more than 1 answer)

a)

Mortgage on premises

b)

Patent

c)

Plant and machinery

d)

Fixture and fittings

e)

Motor vehicles

15.

Accounting is defined as a process of the following, except...

a)

Recording

b)

Recognizing

c)

Summarizing

d)

Classifying

16.

The recording of all the sales and purchases in accounting books in term of Ringgit Malaysia is in line with the concept of.....

a)

Historical cost

b)

Consistency

c)

Materiality

d)

Monetary measurement

17.

Bookkeeping primarily involves all part of the accounting process EXCEPT

a)

Recording

b)

Interpreting

c)

Summarizing

d)

Classifying

18.

Return inwards are

a)

goods returned to the supplier

b)

goods received from suppliers

c)

good sold to customers

d)

goods returned from customers

19.

Which of the following is current liability?

a)

Account receivable

b)

Salary

c)

Account payable

d)

Drawing

20.

Which of the following business organizations has the word "Enterprise" at the end of its name?

a)

Partnership

b)

Public company

c)

Private company

d)

Sole proprietorship

21.

Which process explains that financial statements are analysed and the results of the analysis are used as a guidance to make decision?

a)

Summarizing

b)

Interpreting

c)

Recording

d)

Classifying

22.

Which of the following group belongs to current assets?

a)

Cash at bank, motor vehicle, inventories

b)

Account receivable, inventories, cash at bank

c)

Cash in hand, furniture, inventories

d)

Land, building, machinery

23.

Return outwards are

a)

Goods returned to supplier

b)

Goods received from supplier

c)

Goods sold to customers

d)

Goods returned from customer