1 : On 1 December 2022, a company bought a van for RM40,000 that is to be paid for in four equal monthly instalments. Which of the following is not an effect of this transaction on the balance sheet at 31 December 2022?

Clear Selection

Hint: Consider the accounts involved in the transaction

A. Van RM40,000

B. Cash at Bank RM10,000 decrease

C. Accounts Payable RM30,000

D. Accounts Receivable RM30,000

2 : Inventories totalling RM42,000 were bought on credit and RM15,000 were bought for cash in the last financial year. The cost of inventories sold during the year was RM39,000. Which of the following is not an effect of this transaction on the income statement at the financial year end?

Hint: Consider the accounts involved in the transaction

Sales RM39,000

Purchases RM57,000

Cost of Sales RM39,000

Closing inventories RM18,000

3 : A company paid office rental expenses of RM22,000 for January to November 2022. On 1 December 2022, the company paid RM6,000 office rental expenses for December 2022 to February 2023. Which of the following correctly reflects the related financial statement items as at 31 December 2022?

Hint: Identify if there was an accrual or prepayment of office rental.

Rental expense RM22,000 and Accrued Rental RM6,000.

Rental expense RM24,000 and Accrued Rental RM4,000.

Rental expense RM22,000 and Prepaid Rental RM6,000.

Rental expense RM24,000 and Prepaid Rental 4,000.