WorksheetsFAG 1010 - Topic 1
Total questions: 30
Worksheet time: 8hrs 30mins
The following users are the internal users of accounting information, except
Creditors
Managers
Potential investors
Employees
The following characteristics belong to a business organisation: Number of members 2-50 persons, Capital contribution Large, Liabilities Limited, Books of accounts Must be audited. Which of the answers below best fits the above characteristics?
Nasi Lemak Pak Ali Enterprise
Poliklinik Rodziah & Family
Cahaya Sdn. Bhd.
Rozie Landscaping Bhd.
Lina and Linia are sisters, who have setup a business in Kuala Lumpur known as L&L Design. They hired an accounts clerk, Leman, to prepare their accounts. Based on the given scenario, name the person(s) responsible for the management and control of L&L Design.
Lina, Lini and Leman
Lina and Leman
Lini and Leman
Lina and Lini
Which type of business organisation has a separate legal entity from its owners, and the owners are not liable for the debts of the business?
Sole proprietorship
Partnership
Limited company
None of the above
Bookkeeping is different from accounting. Which part of the accounting process does bookkeeping primarily involve?
Identification
Measurement
Recording
Communication
The accounting process involves all of the following, except
Identifying economic transactions that are relevant to the business
Communicating financial information to users by preparing financial reports
Recording non-quantifiable economic events
Analysing and interpreting financial reports
Which of the following statements is incorrect?
As a sole trader, the owner is not responsible for the liabilities of the business when the business goes bankrupt.
The minimum number of members of a partnership is two.
The partners in a partnership are responsible for the liabilities if the partnership is bankrupt.
The liability of the shareholders of a limited company is limited to their investment in the company.
Which type of business organisation has the following characteristics? • Is owned by two to 20 persons • Has unlimited liability • Has no legal obligation to audit the accounts
Sole proprietorship
Partnership
Company
None of the above
Which of the following statements is true?
Bookkeeping is the recording of all business and owner's own transactions.
Bookkeeping and accounting are one and the same since the bookkeeping function includes the accounting process.
Bookkeeping deals with the record-keeping process and is only one aspect of accounting.
None of the above
Which type of business organisation has the following characteristics? • Conducts business separately from its owners • Is a taxable entity • The owners have limited liability
Sole proprietorship
Partnership
Company
None of the above
Which of the following statements best describes the term 'accounting'?
Accounting is a process of recording economic events in journals and ledgers in the proper order, so that the financial statements prepared are correct.
Accounting is a process of keeping business records to determine the profit made in a financial period.
Accounting is a technique of recording business data using the double-entry system to produce an accurate trial balance to aid decision-making.
Accounting is a process which involves analysing business data, and recording and communicating financial information of an entity in a specified period to be used for decision-making.
For a business, a supplier can be a company or an individual that
provides goods and services used by the business.
owns shares of the business.
gives loans to the business to help finance its activities.
the business sells goods or services to.
Businesses that buy raw materials and convert them into finished goods for customers are a part of the ______
services sector
manufacturing sector
raw material suppliers
merchandising sector
Merchandising businesses include
automotive companies
beverages companies
distribution companies
advertising agencies
What is the main role of an accountant in a business?
Ensuring the business is making a profit
Preparing budgets and business plans
Minimising the amount of tax payable to the government
Recording, summarising and presenting financial information from source documents that are generated by business transactions
Which of the following activities is not an accounting function?
Management consultancy
Costing
Auditing
Taxation
Which branch of accounting is most concerned with the collection of detailed financial data for use in planning and control activities?
Financial accounting
Management accounting
Taxation
Forensic accounting
Which of the following purposes is not a purpose of accounting?
Determining the best alternative for doing a job
Identifying which business problems should be looked at
Determining whether a business is doing well or badly
Assisting with the evasion of tax
An employee is considered a(n) (a) user of accounting information of an entity.
A supplier is a(n) (a) user of accounting information provided by a business entity.
_____________________________________ is a preparation of financial statements for the use of external users.
_____________________________________ applies accounting, auditing and investigative skills to detect financial wrongdoing and fraud.
(a) operations rely on purchasing goods that are ready for sale and reselling them for a certain amount of profit.
Identify whether the following users are external users or internal users. Users Internal users or external users?
Describe the steps in the accounting process.
Two sets of users need accounting information. Identify these two sets of users and provide examples of each.
Briefly explain the uses of accounting information to the following parties: (a) Owner of a business (b) Banker (c) Investor
What are the six main branches of accounting?
Explain why the responsibilities of an accountant are crucial for the financial well-being of a business or an organisation.
Briefly explain the main differences between the three types of business operations.
