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Introduction to Accounting 2

Total questions: 25

Worksheet time: 1hrs 15mins

Name
Class
Date
1.

Interpret the meaning of Going Concern in accounting perspective

a)

Continue to expand and operate in the future or long term period

b)

Be liquidated in the near future

c)

Purchase new asset in the near future

d)

Purchase another business in the future

2.

“The same accounting method will be used from one accounting period to another accounting period”

a)

Going concern

b)

Consistency

c)

Materiality

d)

Accountability

3.

In Malaysia, the accounting report are required to follow which standards and guidelines?

a)

Generally Accepted Accounting Principles (GAAP)

b)

Malaysian Financial Reporting Standards Board (MFRS)

c)

International Financial Reporting Standards Board (MFRS)

d)

Malaysia Accounting Standards Boards (MASB)

4.

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

5.

Which of the following business has unlimited liability

a)

Sole Proprietorship

b)

Limited Liability Partnership

c)

Private Company

d)

Public Company

6.

Who is Luca Pacioli

a)

The Father of Accounting

b)

The Mother of Accounting

c)

Accountant

d)

The Brother of Accounting

7.

Which type of business organisation has the following characteristics?

- conducts business separate from its owners

- the owners have limited liability

- the organisation is a taxable entity

a)

Sole Proprietorship

b)

Partnership

c)

Company

d)

None of the above

8.

Which of the following would NOT be considered as internal users of accounting data for a company?

a)

External auditor

b)

CEO of the company

c)

President of the company

d)

Salesman of the company

9.

What is the system introduced by by Luca Pacioli?

a)

Book Keeping

b)

Accounting

c)

Double Enter

d)

Double Entry

10.

Which type of business organization has the following characteristics?

  • is owned by 2 to 20 person
  • has unlimited liability
  • has no legal obligation to audit the accounts
a)

sole proprietorship

b)

partnership

c)

company

d)

none of above

11.

Which type of business organization has a separate legal entity from its owners, and the owners are not liable for debts of business?

a)

Sole proprietorship

b)

Partnership

c)

Company

d)

None of the above

12.

In a partnership, all the partners can involve themselves in the management and decision making process.

a)

True

b)

False

13.

A Limited Liability Partnership business normally owned by 2 to 50 partners

a)

True

b)

False

14.

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

a)

True

b)

False

15.

Proton Berhad is example of public limited company.

a)

True

b)

False

16.

Which among the options are the measurement principles in accounting

a)

materiality

b)

objectivity

c)

neutrality

d)

going concern

17.

"The business entity should disclose all material information in the financial statements to enable users to make economic decision"

a)

Historical cost principle

b)

Economic entity

c)

Full disclosure principle

d)

Consistency

18.

the time interval which requires a business to produce its financial performance within a specific time period

a)

Periodicity assumption

b)

Neutrality

c)

Going concern

d)

Historical cost

19.

Forming a LLP has the flexibility in decision making compare to a company

a)

True

b)

False

20.

a company that end with Sdn Bhd is a public company?

a)

True

b)

False

21.

there are a total of ___ assumptions, concepts and conventions in accounting

a)

7

b)

6

c)

9

d)

8

22.

There are four measurements principle in providing guidance for accountants in preparing of financial statement. Which is the correct principle?

a)

Going concern

b)

Neutrality

c)

Objectivity

d)

Economic entity

23.

The principle stated that revenue are recognised when earned and expense are recognised when it incurred. Which principle is this?

a)

Full disclosure

b)

Accrual-based accounting

c)

Monetary unit

d)

Revenue and expense recognition

24.

Limited liability is defined as a form of legal protection for shareholders and owners that prevents individuals from being held personally responsible for their company's debts or financial losses. Is this correct

a)

Yes

b)

No

25.

Sole proprietorship business can be own by a minimum of 2 to no maximum number of owners

a)

True

b)

False