1. Which of the following statements is INCORRECT? A. Financial Accounting has the primary objective of preparing financial statements on a regular basis. B. Management Accounting has the primary objective of preparing reports for an organisations internal decision-makers. C. Finance has the primary objective of assessing an organisations financing and investment decisions. D. Accounting has the primary objective of providing information for stakeholders to make informed decisions. 2. The following are statements about the accounting information needs of an organisations competitors. Which of these statements is INCORRECT? A. Competitors want timely information about the market share held by the organisation. B. Competitors want timely information about when the organisation pays income taxes. C. Competitors want timely information about the organisations ability to continue its operations for the foreseeable future. D. Competitors want timely information about the organisations cost profile. 3. Which statement best describes managerial accounting rather than financial accounting? A. Aggregated and summarized data are typical outputs. B. Data collection is restricted to double-entry accounting and cost data. C. Reports may conform to international accounting standards and/or internally developed standards. D. Focus is general rather than specific. 4. Which of the following should not be disclosed in the Income Statement (Statement of Profit or Loss and Other Comprehensive Income)? A. Depreciation of equipment. B. Staff Salaries. C. Equipment at cost price. D. Insurance costs. 5. Which of the following should not be disclosed in the Balance Sheet (Statement of Financial Position)? A. Opening inventories. B. Closing inventories. C. Cash at bank. D. Property, plant, and equipment. 6. ABC Ltd. pays monthly office rental expenses of RM10,000 on the 5th day of every month. At 31 December 2021, ABC Ltd. has an outstanding amount of one months office rental expenses. What is the amount of office rental expense that ABC Ltd. will disclose in the annual Income Statement and the Statement of Financial Position as at 31 December 2021? Income Statement Statement of Financial Position A. RM 110,000 RM 0 B. RM 120,000 RM 0 C. RM 110,000 RM 10,000 D. RM 120,000 RM 10,000 7. At which point does the business recognise that there has been a transfer of ownership of goods and that the business has the legally enforceable right to receive payment for the goods? A. When the goods are produced. B. When the customer places an order for the goods. C. When the customer receives and accepts the goods. D. When the customer pays for the goods. The following information relates to questions 8 to 11. The activities of DEF Ltd. for the year ended 30 June 2022 are listed below:

RM Rental expense 48,000 Closing inventory 24,200 Electricity 12,000 Depreciation Equipment 6,000 Telephone and Internet 5,000 Purchases 276,000 Insurance 12,000 Bank balance 8,700 Salaries 100,000 Opening inventory 16,500 Loan interest 9,800 Sales revenue 750,000 8. What is the annual cost of sales? A. RM 268,300 B. RM 292,500 C. RM 316,700 D. RM 481,700 9. What is the annual gross profit? A. RM 268,300 B. RM 292,500 C. RM 316,700 D. RM 481,700 10. What are the annual operating expenses? A. RM 192,800 B. RM 183,000 C. RM 298,700 D. RM 288,900 11. What is the annual net profit (profit for the year)? A. RM 192,800 B. RM 183,000 C. RM 298,700 D. RM 288,900 The following information relates to questions 12 to 15. ABC Ltd. purchased a machine in 2018 for RM200,000. The machine is expected to have a useful life of 5 years. 12. What is the depreciation expense in Year 2 when the machine is depreciated using the straight-line method? A. RM 40,000 B. RM 80,000 C. RM 120,000 D. RM 160,000 13. What is the carrying amount of the machine (i.e., cost less accumulated depreciation) at the end of Year 2 when the machine is depreciated using the straight-line method? A. RM 40,000 B. RM 80,000 C. RM 120,000 D. RM 160,000 14. What is the depreciation expense in Year 2 when the machine is depreciated using the reducing-balance method at a rate of 25%? A. RM 32,000 B. RM 37,500 C. RM 40,000 D. RM 50,000 15. What is the carrying amount of the machine (i.e., cost less accumulated depreciation) at the end of Year 2 when the machine is depreciated using the reducing-balance method at 25%? A. RM 112,500 B. RM 128,500 C. RM 150,000 D. RM 160,000 The following information relates to questions 16 to 21. A company supplies cleaning supplies to restaurants. At the beginning of October, the business had 8,200 boxes of cleaning supplies that cost RM20 per box. During October, the following transactions took place: October 10 Sold 5,500 boxes at RM 50 per box October 15 Purchased 5,000 boxes at RM 25 per box October 20 Sold 6,000 boxes at RM 50 per box October 25 Purchased 5,000 boxes at RM30 per box 16. 16. What is the cost of sales on October 20 when the company uses the first in, first out (FIFO) method of costing inventories? A. RM 120,000 B. RM 136,500 C. RM 139,500 D. RM 145,000 17. What is the cost of sales on October 20 when the company uses the last in, first out (LIFO) method of costing inventories? A. RM 120,000 B. RM 136,500 C. RM 139,500 D. RM 145,000 18. What is the cost of sales on October 20 when the company uses the weighted average cost (AVCO) method of costing inventories? A. RM 120,000 B. RM 136,500 C. RM 139,500 D. RM 145,000 19. What is the closing inventory on October 31 when the company uses the first in, first out (FIFO) method of costing inventories? A. RM 150,000 B. RM 184,000 C. RM 189,525 D. RM 192,500 20. What is the closing inventory on October 31 when the company uses the last in, first out (LIFO) method of costing inventories? A. RM 150,000 B. RM 184,000 C. RM 189,525 D. RM 192,500 21. What is the closing inventory on October 31 when the company uses the weighted average (AVCO) method of costing inventories? A. RM 150,000 B. RM 184,000 C. RM 189,525 D. RM 192,500 22. Which of the following has the effect of increasing cash flows from operating activities? A. Dividend paid. B. Tax paid. C. Interest paid D. Interest expense. 23. Which of the following has the effect of increasing cash flows from investing activities? A. Acquisition of property, plant and equipment B. Increase in investments in subsidiaries. C. Loans to subsidiaries. D. Proceeds from disposal of property, plant and equipment. 24. Which of the following has the effect of increasing cash flows from financing activities? A. Proceeds from issue of share capital. B. Payment of lease liabilities. C. Acquisition of non-controlling interests. D. Repayment of loan from associate. 25. The following are statements about the immediate effect of the following accounting events on profit and on cash. Which statement is FALSE? Effect on profit Effect on cash A. Taking a bank loan none increase B. Acquisition of a non-current asset on cash terms none decrease C. Purchasing inventories on credit terms none decrease D. Selling inventories on cash terms increase increase