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WorksheetsQUIZ 3-AA015 (CHAP 1 & 2)
Total questions: 19
Worksheet time: 10mins
Accounting is a process of identifying, recording, classifying, summarising, communicating and interpreting the ______?
managers' alternatives or decisions.
resulting profits or losses.
suppliers and customers needs.
results of business or economic transactions.
Accounting communicates financial information about a business enterprise to both internal and external users.
True
False
These questions are most likely to be asked by the internal users except ..
Do we need to stop the production of this model?
Can this company still pay its short-term debts?
Do we need to hold a meeting in the near future to determine the percentage of dividends to be given to our shareholders?
Do we need to make an immediate decision to lay off some unproductive personnel?
Bookkeeping and accounting are one and the same because the bookkeeping function includes the accounting process.
True
False
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..
Financial Accounting
Managerial Accounting
Cost Accounting
Taxation
Which of the following statements is not true for a 'service' firm/company?
The company buy merchandise from other company and sell them to the customers with a mark-up value.
The company provide house-keeping service to its' customers.
The company provide Legal Advise to its' customers.
Telekom Malaysia is a service company.
Which financial statements demonstrate the calculation of Net Profit
Statement of Financial Position
Statement of Comprehensive Income
Statement of Cash Flows
Statement of Owner's Equity
"Issuing new accounting standards to be practiced by all local accountants". This statement is a characteristic of which accounting bodies in Malaysia
Malaysian Institute of Accountants
Malaysian Institute of Certified Public Accountants
Malaysian Accounting Standards Board
Malaysian Assurance Association
Economic entity concept states that the owner and his company are two different entities. Which is the most related element exist from this concept?
Assets
Liabilities
Withdrawals
Expenses
Maju Enterprise closed deal with a customer to order a bundle of printed t-shirts for next year event worth RM10,500 but the owner of the t-shirts company didn't record it as sales revenue for the current year. Which concept is followed?
Materiality Concept
Consistency Concept
Revenues Recognition Concept
Objectivity Concept
Switching accounting principles or methods every year would violate the..
Materiality Concept
Consistency Concept
Revenues Recognition Concept
Objectivity Concept
Which business ownership has a limited liabilities
Sole Proprietorship and Partnership
Partnership and Limited Company
Special Partnership and Public Company
Limited Company and Public Company
The utility bills for December, 2019 is not yet recorded as an expense because the management said it still has not been paid. Which concept has been disobeyed here?
Materiality Concept
Fair Value Measurement Concept
Expense Recognition Concept
Objectivity Concept
The historical cost concept requires that when assets are acquired, to be recorded at..
market price
book value
cost
appraisal value
If some expenses occurred but the money has not been paid yet, it is recognized as ..
an asset
a liability
an owner's equity
a withdrawals
Financial accounting practice is governed by Generally Accepted Accounting Principles (GAAP). Which one is not true about GAAP?
The principles cover conventions, concepts, regulations, procedures and the guidelines of the standards.
GAAP allows a company's management to record and report data as it sees.
Objective is to make information in the Financial Statements relevant to the users, reliable for the users, and comparable in differentiating entities.
The different opinions between the accountants can be solved by referring to GAAP.
Which transaction causes a decreased in liability?
Made cash investment to start a business.
Purchased equipment on account.
Withdrew cash for owner's personal use.
Paid cash to the creditors.
What is the impact on assets (A), liabilities(L) and owner's equity(O) if the owner brings in additional cash into the business?
A - increase, L - increase, O - nothing happen
A - nothing happen, L - decrease, O - increase
A - increase, L - nothing happen, O - increase
A - increase, L - nothing happen, O - decrease
Which transaction resulted in an increased in liability and a decreased in the value of owner's equity.
Received electricity bill RM2,000 at the end of the month.
Received RM17,000 cash from customers for contracts billed in February. Paid RM4,000 cash for March rent on storage space.
Performed services for a customer and received RM2,000 cash
