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WorksheetsREVISION CHAPTER 8 & 9
Total questions: 20
Worksheet time: 10mins
In a manufacturing business, inventory that is ready for sale is called
Raw Material.
Finished Goods.
Work in Process.
Cost of Goods Sold.
Which of the following accounts does NOT exist in a perpetual inventory system?
Inventory.
Cost of Goods Sold.
Sales Returns and Allowances.
Purchases.
Under a perpetual inventory system which account should be debited to record sales on account?
Accounts Payable.
Purchases.
Accounts Receivable.
Inventory.
When an item is purchased, what system is used if the journal entry is Purchases Account to be debited and Accounts Payable to be credited?
Last-in, First-out (LIFO).
Periodic.
Perpetual.
First-in, First-out (FIFO).
The Last-in, First-out (LIFO) inventory method assumes that the cost of the latest units purchased are
the last to be allocated to cost of goods sold.
the first to be allocated to ending inventory.
the first to be allocated to cost of goods sold.
not allocated to cost of goods or ending inventory.
The ending inventory value comprises costs from the earliest purchases. This statement refers to the
Last-in First-out (LIFO) method.
First-in First-out (FIFO) method.
Weighted Average method.
Moving Average method.
Which statement is not true about capital expenditure?
Recorded in Statement of Financial Position.
Increase the business assets.
The benefit of which is received over a period of more than one year.
Decrease the business profit.
Below are the cost incurred to determine the cost of vehicle except
Sales tax.
Price as per invoice.
Insurance and Road tax for the first time.
Lubricant.
Depreciation is a process of
Asset Devaluation.
Cost Accumulation.
Cost Allocation.
Asset Valuation.
Which of the following statement is true about depreciation.
Depreciation of asset will be disclosed in Statement of Comprehensive Income.
Depreciation of asset will increase net profit.
Depreciation of asset is a capital expenditure
Depreciation of asset will be disclosed in Statement of Financial Position.
Depreciation on non-current assets increases
Assets.
Expenses.
Revenues.
Liabilities.
Which of the following method resulting the same amount of annual depreciation expense each year?
Straight-Line.
Reducing Balance.
Unit-of-Activity.
Disposal.
__________ is the contra of asset account which is reported on the Statement of Financial Position as a deduction from a non-current asset.
Revenue Expenditure
Depreciation Expense
Accumulated depreciation
Capital Expenditure
When the book value of the asset is lower than trade-in value, the company will record a
gain on disposal.
accumulated depreciation.
loss on disposal.
depreciation expenses
How to calculate net book value of Property, Plant and Equipment?
Cost of Asset + Accumulated Depreciation.
Cost of Asset – Accumulated Depreciation.
Cost of Asset + Depreciation Expense.
Cost of Asset – Depreciation Expense.
If a company purchases a machine for RM60,000 with a useful life of 10 years and expects a salvage value of RM5,000, what is the annual depreciation using the straight-line method?
RM5,500
RM6,000
RM6,500
RM7,000
When an asset is traded in for a new asset, the difference between the trade-in allowance and the net book value of the old asset is:
Ignored in accounting records
Recorded as a gain or loss
Treated as a new liability
Amortized over the life of the new asset
What happens when a fully depreciated asset is disposed of?
A gain must be recorded
The asset is removed from the books, with no gain or loss
The asset’s book value is retained
A loss is recorded
A trade-in involves exchanging an old asset for a new one. The value of the old asset at the time of exchange is known as the:
Market value
Residual value
Book value
Trade-in value
Which of the following is the most appropriate example of a non-current asset?
Cash
Accounts receivable
Property, plant, and equipment (PPE)
Inventory
