1) What would be the effect of not recording Accrued Telephone Charges in the company account?

(a) Understate Net Profit & Overstate Liabilities

2. Understate Net Profit & Understate Liabilities

(c ) Overstate Net Profit & Overstate Liabilities

(d ) Overstate Net Profit & Understate Liabilities

2. Company need to record expenses and revenues when expenses are incurred and revenue are earned. Which concept described this statement?

1. Objectivity concept

(b) Materiality concept

(c) Separate Business Entity concept

(d) Accrual concept

3. On 1^st January 2020, ASSB paid via cash RM1,200 for rental expenses. This expenditure will result

in.. (assuming other items remain the same)?

I Assets increased by RM1,200 and Assets decreased by RM1,200

II Liabilities decreased by RM1,200 and Assets decreased by RM1,200

III Equity increased by RM1,200 and Assets decreased by RM1,200

IV Equity decreased by RM1,200 and Assets decreased by RM1,200

4. Buy computers on credit to be sold to the company customers will be recorded as?

(a) Dr Purchases and Cr Bank

(b) Dr Purchases and Cr Creditors

(c) Dr Computers and Cr Bank

(d) Dr Computers and Cr Creditors