1. Rita Trading paid its salaries for the month. As a result of this there will be a decrease in the firm's A. Cash and expenses B. Liabilities and revenues C. Assets and revenues D. Liabilities and expenses 2. The following are revenue expenditure EXCEPT: A. petrol for van B. replace tires for van C. road tax for van D. buying a van 3. Rima Enterprise has a gross profit of RM3,000. The closing inventory and opening inventory are valued at RM5,000 and RM4,000 respectively. What is the total sales if total purchases is RM15,000 A. RM14,000 B. RM17,000 C. RM28,000 D. RM15,000 1 4. Raja Jaya store had a beginning merchandise inventory of RM2,000. During the period, purchases were RM14,000; purchase return RM3,000 and carriage inwards RM2,000.A physical count of inventory at the end of the period revealed that RM3,500 was still on hand. The cost of goods sold was: A. RM10,000 B. RM11,500 C. RM14,000 D. RM15,000 5. Nika Enterprise had a balance on its allowance for doubtful debts of RM300 as at 31 December 2019. Allowance for doubtful debts was estimated at 3% on account receivable. On 31 December 2020 the balance of its net accounts receivable was RM15,000. Calculate the amount of doubtful debts to be shown in the statement of profit or loss for the year ending 31 December 2020 A. RM450 B. RM150 C. RM300 D. RM750 6. A cheque for RM300 has been entered as a payment in the cash book instead of as a receipt. To reconcile the cash book balance and the balance appearing in the Bank Statement, we can prepare an adjusted cash book by: A. debiting cash book with RM600 B. crediting cash book with RM600 C. debiting cash book with RM330 D. crediting cash book with RM330 9. Which of the following correctly states the liabilities of the business entities? Limited Company Partnership Sole proprietorship Limited liability Unlimited liability Unlimited liability D Limited liability Limited liability Unlimited liability Unlimited liability Limited liability Limited liability I Unlimited liability Unlimited liability Limited liability 2 2 10. Which of the following accounting principles are used to determine the amount of revenues and expenses for reporting purpose? A. Consistency principle B. Cash basis principle C. Historical cost principle D. Matching principle