1) Azman sold a non-current asset to Linda for RM12,000 and received a cheque for the full amount. Which of the following is the correct entry to record this transaction in the books of Azam? A) Dr Linda RM12,000 Cr Sales RM12,000 B) Dr Bank RM12,000 Cr Sales RM12,000 C) Dr Bank RM12,000 Cr Non-current asset RM12,000 D) Dr Linda RM12,000, Cr Non-current asset RM12,000 2) A debit entry denotes: A) Increase in assets B) Increase in income C) Decrease in expenses D) Increase in equity 3) Sheila started a new business by investing RM20,000 cash and RM25,000 inventory. She also took a bank loan of RM5,000 and paid business expenses of RM2,000 from the cash brought in What is the total capital? A) RM38,000 B) RM42,000 C) RM36,000 D) RM40,000 4) Which of the following is not a revenue expenditure? A) Yearly premium of insurance taken for a delivery van. B) Petrol expenses for the delivery van. C) Salary to the driver of the delivery van. D) Purchase of a delivery van. 5) Which of the following transactions are cash transactions? 1) Purchase of goods for Rm200 payable in cash in one week's time 2) Writing a cheque for the purchase of a new computer 3) Receipt of a cheque from a customer for goods purchased today 4) Purchase of goods where payment is due tin three weeks' time C) 1 and 4 D) 2 and 3 6) Bob's utility bills (gas, electricity etc) are variable amounts paid by the transfer of funds from his bank account to the account of the utility company. Which method of payment is Bob using? A) Direct Debit B) Crossed Cheque C) Payable Order D) Standing Order 7) All introduces his car into his business. Which parts of the business' accounting equation will change? A) Assets and capital B) Capital and profit C) Liabilities and assets D) Capital and liabilities 8) If a bank returns a cheque, the reason could be A) The products are damaged and the cheque must be returned. B) It is a holiday and the cheque cannot go through. C) The account has not enough fund to cover the amount of the cheque. D) The account has too much money. 9) Which transactions could be most usefully made by direct debit? A) Refunds to customers B) The monthly mobile phone bill C) Purchase of office sundries D) Monthly employee salaries A) 3 and 4 B) 1 and 2