WorksheetsFinal Exam Revision
Total questions: 10
Worksheet time: 6mins
What is Notes Receivable?
A type of Accounts Payable
An element of Non-Current Asset
A promissory note which requires the debtor to pay a certain fixed interest rate
A type of Accounts Receivable that is written in the notes of financial statements
Why would businesses prefer notes receivable than to accounts receivable? Choose the most suitable answer.
Not true, businesses prefer accounts receivable
Is another element of current asset, which will show a better financial statement
Can earn extra interest
Is able to generate extra income from the interest earned as a source of finance
Dynamic Sdn. Bhd. decided to sell off his car at the price of RM12,000. The business had previously purchased the car at RM14,600.
Is it a loss or gain on disposal? What is the double entry?
Gain. Dr Bank RM14,600, Cr Disposal gain RM2,600, Cr Car RM12,000
Gain. Dr Bank RM12,000, Dr Disposal gain RM2,600, Cr Car RM14,600
Loss. Dr Bank RM14,600, Cr Disposal loss RM2,600, Cr Car RM12,000
Loss. Dr Bank RM12,000, Dr Disposal loss RM2,600, Cr Car RM14,600
Matthew had purchased a photo printing machine costing RM25,000 and an insurance fee of RM100. After the machine was ready to use, there was additional cost from costs of testing, delivery charge, and employee training respectively RM120, RM80, RM220.
How much is the total cost of the machine?
RM25,300
RM25,000
RMm25,100
RM25,520
John was advised to apply internal controls during his business operation. He discovered that the benefits from the internal control is less than the costs.
Should he apply that internal control?
Yes
No
What is the consequence of a business not preparing a bank reconciliation?
Nothing will happen
The beginning balance of the business's cashbook will not match with the bank statement's beginning balance.
The business will have a right to sue the bank for incorrect recording.
The ending balance of the business's cashbook will not tally with the bank statement's ending balance.
Which info indicates that it is a public company?
Less than 50 shareholders allowed
More than 50 shareholders
The title of the business name ends with "Bhd"
The title of the business name ends with "Sdn. Bhd."
Convertible preference shares means that the shareholders are able to convert their shares to dividends.
True
False
The interest of a note is based on 360 days/year.
If the principal sum was RM48,000, interest rate of 8%/year, and the note is expected to be settled in 110 days.
Calculate the interest amount.
RM1173
RM1157
RM1201
RM1089
Best Makers Bhd. issued 27,000 redeemable preference shares each worth RM1.50 on 7th June 2020 with dividend declaring by discretion.
How should the journal entry be recorded?
Dr Bank RM27,000
Cr Share capital RM27,000
Dr Bank RM27,000
Cr Liability RM27,000
Dr Bank RM40,500
Cr Liability RM40,500
Dr Bank RM40,500
Cr Share capital RM40,500
