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Lecture 1-5 Revision Test (theory)

Total questions: 10

Worksheet time: 7mins

Name
Class
Date
1.

Which of these elements are recorded in the statement of profit and loss?

a)

Assets

b)

Expenses

c)

Cost of Goods Sold

d)

Equity

2.

What will be the double entry for a debtor paying full for his purchase of goods?

Use: Dr, Cr, Accounts Receivable, Accounts Payable, Sales, Purchases, Cash

(a)  

3.

Scenario: Muthu paid you in cash (RM300) for a car wash service.

The bookkeeper debited RM300 to revenue account and credited RM300 to cash account.

How should he adjust this error? State the double entry.

(a)  

4.

What are the uses of financial statements to the internal users?

a)

Managerial accounting

b)

Internal decision making

c)

To post on social media

d)

Reviewing and critiquing

5.

Which one is a subsidiary ledger?

a)

Ah Meng

b)

Sales

c)

Accounts Payable

d)

Purchase Return

6.

Which transactions are to be recorded in the cash receipts account?

a)

Cash from cash sales

b)

Cash from bank loan

c)

Cash from payable tax

d)

Cash from credit customers

7.

Choose the ones that are the external users of financial statements

a)

Shareholders

b)

Board of Directors

c)

Managers

d)

Lenders

e)

Government

8.

Why is cash basis not used by businesses?

4 lines
9.

Which of these accounting equations are balanced?

a)

Increase in liability, decrease in equity

b)

Decrease in asset, increase in liability

c)

Increase in equity, decrease in asset

d)

Decrease in liability, increase in liability

10.

Which of the following statement is NOT true?

a)

Accountants are heavily involved in the budgeting process for a business entity.

b)

Sales journal are to record credit sales.

c)

Accrued expenses are is a liability account.

d)

Accounting information for decision making is concerned with the past.