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Chap: 1 Introduction Accounting

Total questions: 30

Worksheet time: 20mins

Name
Class
Date
1.

The type or branch of accounting that generates reports for the use of external parties such as creditors, investors and government agencies is known as:

a)

Financial Accounting

b)

Managerial Accounting

c)

Tax Accounting

d)

Forensic Accounting

2.

Which one of the following is not an external user of accounting information?

a)

Investor

b)

Creditor

c)

Manager

d)

Customer

3.

Who is known as the father of accounting?

a)

Leonardo da Vinci

b)

Fra Luca Pacioli

c)

Al Khawarizmy

d)

Al Mazendarany

4.

Book keeping is mainly concerned with

a)

Recording of financial data

b)

Designing the systems in recording, classifying, and summarizing the recorded data

c)

Interpreting the data for internal and external users

d)

None of the above

5.

The process of identify, classify, recording and communicating business transaction is called as book-keeping.

a)

True

b)

False

6.

Which of the following statement is true?

a)

Bookkeeping is recording all the business transaction and owner's own transaction

b)

Bookkeeping deals with record-keeping and is one only aspect of accounting

c)

Bookkeeping and accounting are one and the same since the bookkeeping function is includes in accounting process

d)

None of the above

7.

Which branch of accounting embraces the preparation of various tax returns and tax planning necessary to minimize the impact of taxes on the firm?

a)

Auditing

b)

Cost accounting

c)

Financial accounting

d)

Tax accounting

8.

Which branch of accounting deals with the calculate the profit or loss of a business during a period and to provide an accurate picture of the financial position of the business as on a particular date to investors or banks?

a)

Auditing

b)

Cost accounting

c)

Financial Accounting

d)

Tax accounting

9.

Board of Director are the___________users of the accounting information.

a)

internal

b)

external

10.

Financial Accounting provides information to internal users only.

a)

True

b)

False

11.

The owner of a company is 2 to 20 people. Which ownership complies with this statement?

a)

Sole Proprietorship

b)

Corporation (Public Company)

c)

Corporation (Private Limited)

d)

Partnership

12.

The owner of a company is either 2 to unlimited numbers. Which ownership complies with this statement?

a)

Sole Proprietorship

b)

Corporation (Private Limited)

c)

Corporation (Public Company)

d)

Partnership

13.

The company changed raw materials into finished products and sold to customers. What type of business activity were they involved in?

a)

Services

b)

Merchandising

c)

Manufacturing

d)

Banking

14.

Which one is not a service company?

a)

MAXIS

b)

CIMB bank

c)

Ernst & Young

d)

SHARP

15.

Professional partnership owners consist of how many partners?

a)

1-20

b)

2-50

c)

1-50

d)

2-50

16.

Sole trader has a unlimited liability.

a)

True

b)

False

17.

Which type of business ownership has a limited liability?

a)

Sole Proprietorship and Partnership

b)

Partnership and Private Limited Company

c)

Private Limited Company and Public Company

d)

Sole Proprietorship and Public Company

18.

Which type of business ownership is the most easily formed?

a)

Sole Proprietorship

b)

Partnership

c)

Public Company

d)

Private Limited Company

19.

Which type of business ownership does not have company tax?

a)

Sole Proprietorship

b)

Partnership

c)

Sole Proprietorship and Partnership

d)

Private Limited Company and Public Company

20.

By law, a corporation may act as an individual where it may purchase, own and sell property in the name of the corporation itself.

a)

True

b)

False

21.

Both Merchandising Firm and Manufacturing Firm have "Sales" account.

a)

True

b)

False

22.

CELCOM is a merchandising company.

a)

True

b)

False

23.

What is the name of the statement that complies with the accounting equation?

a)

Statement of Profit or Loss

b)

Statement of Cash Flow

c)

Statement of Financial Position

d)

Statement of Owner's Equity

24.

Which statement is used to calculate the profit or loss of the business?

a)

Statement of Comprehensive Income

b)

Statement of Financial Position

c)

Statement of Owner's Equity

d)

Statement of Cash Flows

25.

Which one is NOT an accounting bodies in Malaysia?

a)

MAA

b)

MIA

c)

MICPA

d)

MASB

26.

Which functions belongs to MICPA?

a)

Determining the qualifications for members.

b)

Issuing new accounting standards.

c)

Recruiting, educate, train and assess a body of members skilled in accounting profession.

d)

Controlling the accounting practice in Malaysia.

27.

Which are NOT the function of MIA?

a)

Determining the qualifications for members.

b)

Controlling the accounting practice in Malaysia.

c)

Issuing new accounting standards.

d)

Provide training and education

28.

The role of MASB is review, revise and adopt existing accounting standard.

a)

True

b)

False

29.

The accounting process involves all of the following EXCEPT

a)

identifying economic transactions that are relevant to the business.

b)

communicating financial information to users by preparing financial reports.

c)

recording nonquantifiable economic events.

d)

analyzing and interpreting financial reports.

30.

To know the company’s profitability and the amount of dividend paid out to shareholders.

Which user refers to the above statement?

a)

Investor

b)

Banks

c)

Creditors

d)

LHDN