BKAL1013 BUSINESS ACCOUNTING

Matric no: ______________ Group: _________ Attendance list no: _____________ Tutorial 1: Chapter 1, 2, 3
DUE DATE: 3 OCTOBER 2013

1.

Accounting is a process involving the following activities, EXCEPT: A. B. C. D. recording of economic activities communicating to stakeholders identifying relevant economic activities guaranteeing profitability of business operation

2.

A senior accountant working at the Account Department of Universiti Utara Malaysia is also known as: A. B. C. D. a public accountant a partner a private accountant an independent accountant

3.

________ is established as a trustee body and vested with the responsibility for the oversight of the accounting practice standards setters performance, financial and funding arrangements. A. B. C. D. Malaysian Accounting Standards Board (MASB) Financial Reporting Foundation (FRF) Malaysian Institute of Accountants (MIA) Malaysian Institute of Certified Public Accountants (MICPA)

4.

__________________ requires detailed companys financial information for operating alternatives, projection of income of a new range of products, and forecasts of cash required for planning purposes. A. B. C. D. An inland revenue officer A labor union leader A tax agent A companys manager

BKAL1013 BUSINESS ACCOUNTING

5.

If the liabilities of a business decreased by RM3,000 during a period of time and the owner's equity in the business decreased by RM20,000 during the same period, the assets of the business must have: A. B. C. D. decreased by RM17,000 decreased by RM23,000 increased by RM17,000 increased by RM23,000

6.

Known as the net worth of the business after all the claims owed have been settled, ___________ is/are also the residual value or rights of the shareholders. A. B. C. D. assets liabilities owners equity revenues

7.

Accountants and their staff who provide services on a fee basis are said to be employed in A. B. C. D. not-for-profit accounting managerial accounting public accounting private accounting

8.

This concept requires a business to record a purchase or sale at their acquired or exchange price. A. B. C. D. Fair value Full disclosure Historical cost Objective evidence

9.

A typical annual report of a public-listed company will show the financial results of two (or more) consecutive years. This is consistent with which of the following characteristic of accounting information? A. B. C. D. Relevance Comparability Reliability Understandability 2

BKAL1013 BUSINESS ACCOUNTING

10.

It is much easier and cheaper to form; the most widely established with a variety of businesses; however, financial resource is always a common constraint. The above description is BEST associated with: A. B. C. D. sole-proprietor partnership private-limited company public-limited company

11.

Malaysias beautiful sandy beaches found on Sipadan Island, Perhentian Island and Langkawi Island are BESTassociated with which of the following types of industry? A. B. C. D. Manufacturing Servicing Merchandising Exporting

For Questions12-14,please indicate the BEST effect of the transaction on accounting equation. 12. On 15 March 2013, Lewis Suarez Enterprise purchased on account from Patrick Ezra SdnBhd, 5 (five) units of fire extinguisher for RM3,000 and paid RM200 for the delivery. A. B. C. D. Increase in assets RM3,000; decrease in liabilities RM3,000 Decrease in owners equity RM3,000; decrease in assets RM3,000 Increase in liabilities RM3,200; decrease in owners equity RM3,200 Increase in assets RM2,800; increase in liabilities RM3,000 and decrease in owners equity RM200

13.

On 27 March 2013, JennLopess Enterprise bought a brand new Proton Inspira car. A sum of RM10,000 cash was handed as a deposit while the balance of RM85,000 will be paid through installments. A. B. C. D. Increase in owners equity RM85,000; increase in liabilities RM85,000 Net increase in assets RM85,000; increase in liabilities RM85,000 Increase in assets RM95,000; increase in owners equity RM95,000 Increase in owners equity RM85,000; increase in assets RM85,000

BKAL1013 BUSINESS ACCOUNTING

14.

Early this year, Kristina Aguirella, the sole-owner of Genie in the Bottol Saloon, invested RM100,000 cash plus a multi-purpose vehicle (MPV) worth RM75,000 for the business. However, on 3 March 2013 due to her individuals financial stress, she made a withdrawal of RM25,000 cash from the saloons bank account. A. B. C. D. Decrease in assets RM25,000; decrease in owners equity RM25,000 Decrease in assets RM75,000; decrease in liabilities RM75,000 Decrease in owners equity RM75,000; decrease in liabilities RM75,000 Decrease in an asset RM25,000; increase in another asset RM25,000

15.

Which of the following BEST illustrates the matching principle in accounting? A. B. C. D. Statement of Comprehensive Income Statement of Financial Position Statement of Cash Flows Statement of Changes in Owners Equity

16.

A net profit from business operationswould ___________ the ______________ in the Statement of Financial Position. A. B. C. D. increase; assets increase; creditors increase; debtors increase; owners equity

17.

The Statement of Cash Flows indicates the following broad category of cash activities of a company, EXCEPT: A. B. C. D. financing investment operation litigation

18.

KhatyPerli started a business with an initial capital of RM15,000 and ended with RM20,000. Throughout the period, she has withdrawn RM4,500. What would be the amount of net profit or net loss for the period? A. Net loss of RM1,500 B. Net profit of RM500 4

BKAL1013 BUSINESS ACCOUNTING

C. Net loss of RM10,500 D. Net profit of RM9,500 19. The accounting information presented to the users must be comprehensive and simultaneously significant enough for the decision making purposes. The above statement BEST represent which of the following elements in the Generally Accepted Accounting Principles (GAAP)? A. B. C. D. 20. Objective evidence and historical cost Business entity and conservatism Full disclosure and materiality Revenue recognition and going concern

Which of the following transactions would increase an asset and increase a liability? A. B. C. D. Payment of an account payable Borrowing money from a bank An owners investment of additional cash into the business Purchasing office equipment for cash.

21.

Which of the following is FALSE? A. B. C. D. Every transaction affects only two accounts Every transaction affects the accounting equation Amounts entered on the left side of an account are debits Amounts entered on the right side of an account are credits

22.

Assets normally show a: A. B. C. D. debit balance credit balance debit or credit balances debit and credit balances

23.

Journalizing includes the following actions EXCEPT: A. B. C. D. record the date record the net amount to be debited and credited record the title of the account and amount debited record the title of the account and amount credited 5

BKAL1013 BUSINESS ACCOUNTING

24.

The rules of debit and credit for the Statement of Financial Positions (Balance Sheet) accounts may be stated as: A. B. C. D. debit for increase in asset accounts credit for increase in asset accounts debit for increase in liability accounts credit for decrease in liability accounts

25.

On 20 September 2012, Ahmad Osman, a carpenter, received a cash payment for services previously billed to a client. Ahmad paid his telephone bill and he also bought equipment on credit. For the three transactions, at least one of the entries would include a: A. B. C. D. debit to Accounts Payable credit to Accounts Payable debit to Accounts Receivable credit to Ahmad Osman, Capital

26.

An accountant has debited an assets account for RM2,000 and credited a liability account for RM500. Which of the following would be an INCORRECT way to complete the recording of the transaction? A. B. C. D. Credit an asset account for RM1,500 Credit another liability account for RM1,500 Debit an owners equity account for RM1,500 Credit an owners equity account for RM1,500

27.

The best interpretation of the word credit is the: A. B. C. D. offset side of an account increase side of an account right side of an account decrease side of an account

28.

In the first month of operations, the total of the debit entries to the cash account amounted to RM700 and the total of the credit entries to the cash account amounted to RM400. The cash account has a: A. B. C. D. RM400 credit balance RM700 debit balance RM300 debit balance RM300 credit balance

BKAL1013 BUSINESS ACCOUNTING

29.

A trial balance will not balance if: A. B. C. D. a journal entry is posted twice a journal entry is only partially posted a wrong amount is used in journalizing incorrect account titles are used in journalizing

30.

If the sum of debit column equals the sum of credit column in a trial balance, it indicates: A. B. C. D. no errors have been made no errors can be discovered that all accounts reflect correct balances the mathematical equality of the accounting equation

Use the following information for questions 31-34: The following transactions were carried out by Lido Consultant that provides legal consultation to its customers:
March 1 2 7 15 20 21 Purchased office supplies on credit for RM1,500. Signed an order for 3 units of desktop computer worth RM1,700 per unit. Sent a bill to Atan& Company on services rendered amounting to RM12,000. Received computers ordered on 2 March and paid half of the total amount. Paid RM5,000 as down-payment for owners daughters new car. Atan& Company paid half of the amount billed on 7 March.

31.

What would be the journal entries for 1 March transaction? A. B. C. D. Debit Supplies Expense RM1,500; Credit Account Payable RM1,500 Debit Supplies Expense RM1,500; Credit Cash RM1,500 Debit Supplies RM1,500; Credit Cash RM1,500 Debit Supplies RM1,500; Credit Account Payable RM1,500

32.

Which of the following is TRUE about entries for transaction on 2 March? A. B. C. D. Debit Office Equipment RM1,700 Debit Office Equipment RM5,100 Credit Account Payable RM5,100 No journal entries required

BKAL1013 BUSINESS ACCOUNTING

33. What would be the journal entry for 20 March? A. B. C. D. Debit Vehicles RM5,000; Credit Cash RM5,000 Debit Vehicles RM5,000; Credit Account Payable RM5,000 Debit Drawings RM5,000; Credit Cash RM5,000 Debit Drawings RM5,000; Credit Vehicles RM5,000

34. What would be the journal entry for 21 March? A. B. C. D. Debit Cash RM6,000; Credit Revenue RM6,000 Debit Cash RM12,000; Credit Accounts Receivable RM12,000 Debit Cash RM6,000; Credit Accounts Receivable RM5,000 Debit Cash RM6,000; Credit Accounts Receivable RM6,000

35. On 1 May 2013, the Accounts Receivable in the general ledger had a balance of RM11,000. During the month, a total of RM20,000 invoices were issued and RM22,000 were collected. The Accounts Receivable as at 31 May 2013 would show a: A. B. C. D. debit balance of RM9,000 debit balance of RM13,000 credit balance of RM9,000 credit balance of RM13,000

END OF QUESTIONS

BKAL1013 BUSINESS ACCOUNTING

Name: __________________________Matric no: ___________ Group: _______ Attendance list no: ____ Tutorial 1: Chapter 1, 2, 3 DUE DATE: SEPTEMBER 2013

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30.

31. 32. 33. 34. 35.