1. A business entity deposited cheques to its bank account but the amount did not appear in the bank statement since the deposit yet to be cleared by the bank. This transaction has been recorded in the business bank book. This is known as a. Standing order b. unpresented cheque c. uncredited cheque d. uncredited lodgement 2. What is the main purpose of Statement of Profit or Loss and other Comprehensive Income ? a.To determine net profit or net loss b.To adjust for accruals revenue and expenses c.To compute the cost of sales d. To calculate amount of revenue and expenses 3. Which of the following statement is true? a. Current Ratio determines the profitability of the business b.Quick Ratio excludes closing inventory and accruals. c.Current Ratio is to determine the solvency of the business d.A satisfactory level of Current Ratio should be below 1 times. 4. What are the objectives of preparing bank reconciliation? i. To investigate the differences between bank statement and bank accounts. ii. To deter fraud iii. For internal control purposes iv. To adjust bank balances to bank statement a.i, ii and iii b.i and ii c.i, ii and iv d.ii, iii and iv 5. Balance of Account Receivable as at 31 December 2019 is RM120,000. Allowance for Doubtful Debts is at 4% of net Accounts Receivable. The balance of Allowance for Doubtful debts account in the Trial Balance is RM3,600. Calculate the amount of doubtful debts to be shown in Statement of Profit or Loss for year ending 31 December 2019. a.Decrease in Allowance for Doubtful Debts RM4,800 b.Decrease in Allowance for Doubtful Debts RM1,200 c.Increase in Allowance for Doubtful Debts RM4,800 d.Increase in Allowance for Doubtful Debts RM1,200 6. The Accumulated Depreciation account in the statement of financial position will be treated as a.As a deduction from asset in the statement if financial position b.In the asset account c. In the statement of profit loss as an expense d. As a debit balance in the trial balance 7. Which of the following statement is incorrect? a. Prepaid revenues are payments received for services rendered in the previous accounting period b. Prepaid expenses are expenses paid in advance c. Accrued expenses are expenses incurred but not yet paid d.Accrued revenues are revenues earned but not yet received