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QUIZ CHAPTER 1 - 4

Total questions: 30

Worksheet time: 18mins

Name
Class
Date
1.

Which of the following equations properly represents a derivation of the fundamental accounting equation?

a)

Assets = Liabilities + Equity

b)

Assets = Liabilities – Equity

c)

Liabilities = Assets + Equity

d)

Equity = Assets + Liabilities

2.

The main purpose of statement of comprehensive income is to determine__________.

a)

the cost of sales

b)

the net profit or net loss

c)

the amount of revenue and expenses

d)

the amount of accrued revenue and expenses

3.

Carriage inwards is charged to the statement of comprehensive income because__________

a)

it is a revenue

b)

it is not part of the transportation cost

c)

it is an expense connected with the sale of goods

d)

it is an expense connected with the purchase of goods

4.

Which of the following would be included in Statement of Financial Position?

a)

Sales

b)

Revenue

c)

Expenses

d)

Non- Current Liabilities

5.

Which of the following correctly states the liability of the company’s business?

a)

Limited Liability

b)

Current Liability

c)

Unlimited Liability

d)

Non-Current Liability

6.

Which of the following is capital expenditure?

a)

Repair Expenses

b)

Electricity Expenses

c)

Depreciation of machinery

d)

Cost of extension to building

7.

In a double entry system, a debit is used to record:

a)

Decrease in asset, and increase in capital, revenue and expense.

b)

Increase in asset and expense, and decrease in liability, revenue and capital.

c)

Increase in asset and revenue, and decrease in liability, expense and capital.

d)

Decrease in asset and capital, and decrease in liability, revenue, and expense.

8.

Which of the following would be included in the Statement of Comprehensive Income?

a)

Asset

b)

Liabilities

c)

Capital

d)

Revenues

9.

Which o the following best describes a trial balance?

a)

It is a special account

b)

It is a list of balances on the books

c)

It shows all the entries in the books

d)

It shows the financial position of a business

10.

Adjusting entries at the end of an accounting period are often needed because__________

a)

management cannot decide what they want to report

b)

thereare always errors made in recording transactions

c)

many transactions affect more than one accounting period

d)

there are never enough accounts to record all the transactions.

11.

Which of these items would be accounted for as an expense?

a)

Rent received

b)

Discount allowed

c)

Discount received

d)

Commission received

12.

Bookkeeping mainly involves_________ .

a)

Recording

b)

Identifying

c)

Interpreting

d)

Measurement

13.

Which of the following statements about users of accounting information is correct?

a)

Management is considered as external users.

b)

Present creditors are considered as internal users

c)

Taxing authorities are considered as external users

d)

Regulatory authorities are considered as internal users

14.

The purpose of __________ is a deduction allowed by the seller of the goods in order to motivate the customer to pay within a specified time.

a)

cash discount

b)

trade discount

c)

carriage inwards

d)

carriage outwards

15.

If we take goods for own use we should__________ .

a)

Debit sales account, Credit inventory account

b)

Debit drawings account, Credit inventory account

c)

Debit drawings account, Credit purchases account

d)

Debit purchases account, Credit drawings account

16.

A list of assets, liabilities and owner’s equity of a business entity as of a specific date is known as a statement of __________.

a)

cash flows

b)

profit or loss

c)

financial position

d)

changes in equity

17.

If the total assets of a business is RM100,000 and the total owner’s equity is RM20,000. What is the value of total liability?

a)

RM100,000

b)

RM80,000

c)

RM120,000

d)

RM20,000

18.

Arielle bought furniture on credit from Chanel. Identify the account to be debited and the account to be credited.

a)

Debit Furniture a/c ; Credit Cash a/c

b)

Debit Purchase a/c ; Credit Arielle a/c

c)

Debit Furniture a/c ; Credit Chanel a/c

d)

Debit Arielle a/c ; Credit Purchase a/c

19.

What will be the journal entry for cash received from Deanna on the services provided by the business?

a)

Dr Cash a/c

Cr Revenue a/c

b)

Dr. Cash a/c

Cr. Deanna a/c

c)

Dr. Deanna a/c

Cr. Revenue a/c

d)

Dr. Bank a/c

Cr. Revenue a/c

20.

In the double entry rules, al decreases in assets, expenses, and drawings are recorded in ______________ .

a)

Debit (left) side of the account

b)

Debit (left) side of the account

c)

Debit (left) side of the account

d)

Debit (left) side of the account

21.

State the double-entry for the following transaction:

Bought machinery on credit from Mariam

a)

Purchases account, Machinery account

b)

Purchases account, Mariam account

c)

Machinery account, Mariam account

d)

Machinery account, Cash account

22.

State the effect of the following transaction on accounting equation:

Paid Amira by cheque.

a)

decrease asset, decrease liability

b)

increase asset, decrease liability

c)

decrease asset, increase liability

d)

increase asset, increase liability

23.

Which of the following is an income?

a)

Advertising

b)

Motor Van

c)

Wages

d)

Discount Received

24.

Assets = RM40 000, Equity = RM23 000. Find out liability.

a)

RM63 000

b)

RM23 000

c)

RM40 000

d)

RM17 000

25.

Return goods worth RM500 to Sy. Amin. Return goods here is _________

a)

Return inward

b)

Return backward

c)

Return outward

d)

Return upward

26.

State the effect on the asset:

Purchased equipment RM3000 from Syarikat Bridgelink

a)

decrease RM3000

b)

decrease RM6000

c)

increase RM3000

d)

no effect

27.

Irisa provided the following information. Calculate the amount of equity (capital) at the of financial period.

a)

RM34 800

b)

RM44 800

c)

RM36 200

d)

RM46 200

28.

State the double entry: Paid cash into bank.

a)

Debit : Cash

Credit : Bank

b)

Debit: Bank

Credit: Drawings

c)

Debit: Bank

Credit: Cash

d)

Debit: Drawings

Credit: Bank

29.

Ahmad bought goods by cash. Name the 2 accounts involve

a)

Goods and Ahmad

b)

Purchases and Cash

c)

Goods and Cash

d)

Purchases and Ahmad

30.

Which of the following equation is properly represents a derivation of the fundamental accounting equation?

a)

Asset = Liabilities + Equity

b)

Asset = Liabilities - Equity

c)

Liabilities = Asset + Equity

d)

Equity = Asset + Liabilities