WorksheetsACC117 Part B
Total questions: 40
Worksheet time: 20mins
Which of the following best describes the management and control of a Limited
Company.
Managed and controlled by the owner.
Managed and controlled by partners or by a board which consists of a few
partners.
Managed and controlled by a board of directors appointed by the
shareholders.
Managed and controlled by members of society.
______________ refers to a phase where financial statements are analyzed, and
the result of the analysis is used as a guide for users to make decisions.
Classifying
Recording
Summarizing
Interpreting
The purpose of recording and analyzing accounting information of an organization
are as follows EXCEPT_____.
To provide future financial information.
To provide easier financial reference.
To avoid misleading financial statements.
To know the financial status of the organization.
The type of users that are interested in the establishment of good accounting
controls in a business as a means of reducing cost of production, selling and
distribution and, hence, the reduction of the prices of the goods they purchase
would be ______.
Owners
Consumers
Government
Suppliers
Companies that record the withdrawal of goods by the owner as drawings in the
business books of accounts follow ________ concept.
Business entity
Going concern
Money measurement
Historical cost
FOUR (4) qualitative characteristics to enhance the usefulness of financial
statements are _____________.
Comparability, verifiability, neutrality, and understandability
Understandability, timeliness, comparability, and verifiability
Comparability, verifiability, completeness, and understandability
Timeliness, materiality, verifiability, and understandability
Financial information is considered relevant if it has __________.
Both predictive value and confirmatory value
Either predictive value or confirmatory value or both
Only predictive value
Only confirmatory value
ZZ Berhad records the value of its machine at the amount it was first acquired 3
years ago. This is in line with a/an _______ concept.
Going concern
Historical cost
Economic entity
Money measurement
Debts owed to the business by customers are classified as ___________.
Asset
Expenses
Liability
Owner’s equity
A sales return should be ___________.
Debited to Sales Account
Credited to Sales Return Account
Debited to Sales Return Account
None of the above
Which of the following is not considered an analytical aspect of the accounting
profession?
Evaluating an organization's operational efficiency.
Forecasting the probable results of future operations.
Designing systems that provide information to decision-makers.
Journalizing and posting business transactions.
Which of the following is an example of an internal user of financial statements?
Auditors.
Suppliers.
Company's CEO.
Government agencies.
Choose the appropriate characteristic of a Limited Company.
If the business is sued, the owner’s assets are at risk.
The entity is not treated as a separate legal entity from its owners.
There is no requirement to prepare a financial statement.
Suitable for personal asset protection from business debt and obligation.
What are the components of Statement of Profit or Loss?
The company's assets and liabilities.
The company's cash flow activities.
The company's revenue, expenses, and net income or loss.
The company's shareholders' equity.
The consistency principle states that__________ should remain unchanged from one
period to another.
reporting currency.
management's judgment.
accounting methods and principles.
disclosure of significant events.
_____________ ensures that financial statements are free from bias and without the
influence of others.
Neutrality
Comparability
Business Entity
Going Concern
When financial information is capable of being checked and confirmed by independent
parties, it demonstrates the characteristic of __________.
neutrality
verifiability
comparability
consistency
____________ensures that financial information is available to decision-makers
promptly, without undue delay.
Reliability
Consistency
Understandability
Timeliness
The expanded accounting equation is used by which statement?
Statement of Profit or Loss
Statement of Financial Position
Cash flow statement
All the above
If a company records RM1,000 purchase on credit, which accounts are affected by the
double entry?
Debit Company account, Credit Purchase
Debit Purchase, Credit Cash
Debit Purchase, Credit Accounts Payable
Debit Accounts Receivable, Credit Cash
The accounting cycle starts with the _______.
preparation of ledger accounts
preparation of trial balance
analysis of business transaction
preparations of adjusting entries
All the followings are characteristics of a sole proprietorship, EXCEPT ______.
owner has unlimited legal liability
owner has control of the business
owner and the business are separate legal entity
None of the above
In accounting and bookkeeping, the term POSTING refers to ______.
the transfer of information from ledger to trial balance
the transfer of entries from journal to ledger
the preparation of financial statement from trial balance
None of the above
The following would be considered an internal user of accounting information for Siakap
Jelita Sdn. Bhd. EXCEPT ________?
president of the company
production Manager
merchandise inventory Clerk
president of the employees’ labour union
Companies not disclosing an imminent bankruptcy would violate ______ concept.
business entity concept
going concern concept
monetary unit concept
historical cost concept
According to _____ concept, assets are recorded at their original purchase price.
materiality
historical cost
going concern
monetary
Switching accounting principles and methods every year would violate _____
characteristic.
timeliness
verifiability
comparability
understandability
Each item in financial statements must be able to demonstrate its accuracy of
information with evidence. This statement follows ________ characteristic.
timeliness
verifiability
comparability
understandability
If the assets of a business are RM100,000 and the owners’ equity is RM20,000 the value
of the liabilities will be ________.
RM100,000
RM80,000
RM120,000
RM20,000
A debit entry could lead to __________.
an increase in assets or decrease in expenses
an increase in revenues or an increase in liabilities
a decrease in revenues or decrease in assets
a decrease in liabilities or an increase in expenses
In bookkeeping, posting means....
to record the transactions from the journal to the ledger.
to record the transactions in the journal.
to record the transactions in the subsidiary books.
to record the transactions in the cash book.
Which of the following statements is true about external users?
Internal users are people outside the company.
They are not interested in the information generated by financial records.
These people utilize their own money and resources to invest in a company.
They are people within the company directly involved in business operations
Which of the following characteristics does NOT reflect a partnership?
It is managed and controlled by partners
Profits are shared among the partners
It is difficult to raise capital
The liability of each partner is limited to the extent of his investment.
Which of the following steps occurs earliest in the accounting cycle?
A trial balance is prepared.
A financial statement is prepared.
Transactions are journalized.
The information is posted to the ledger accounts.
Which of the following concepts does not record non-financial transactions?
Going concern concept
Money measurement concept
Accrual concept
Cost concept
In order for the accounting information to be relevant, it has to have
Only predictive value
Only confirmative value
Both predictive and confirmatory value
Either predictive or confirmatory value, or both
What attributes make the information provided in the financial statements useful to
the readers?
Qualitative characteristics of financial information
Quantitative characteristics of financial information
Elements of financial statements
Objectives of financial reporting
The following are qualitative characteristics of financial statements EXCEPT___
Understandable
Simplicity
Relevance
Timeliness
Choose the correct answer for the following accounting classification and equation.
Motor vehicle +Rental Received = Capital + Account Payable + Rental Paid
Land + Salary Paid = Capital +Creditor + Commission Received
Furniture -Drawing = Capital + Creditor + Sales
Land + Sales = Capital + Debtor + Inventory
Which of the following is correct?
i. A credit entry will reduce non-current assets.
ii. A credit entry will increase account payables.
iii. A debit entry will increase sales.
iv. A debit entry will reduce current assets.
i and ii
ii and iii
iii and iv
I, ii, iii and iv
