10. Which of the following is NOT TRUE about an entity's equity? A. An equity represents owners' claims on the entity's assets. B. Equity is the amount of assets that are left over after the entity has paid off its liabilities. C. Equity represents the entity's assets and liabilities. D. Equity will increase if there are additional contributions by owners and when revenues are generated from the sale of goods or services. 11. TTDI Laundry purchased two new washing machines by paying cash RM7,800 in total. The washing machines market value on the date of purchase was RM8,800. The company incurred RM400 in transportation costs, RM200 in installation costs and paid RM100 fine for illegal parking while the machines were being delivered. What amount will TTDI Laundry record the washing machines? A. RM8,400. B. RM8,500 C. RM8,800 D. RM7.800. 12. If financial information is significant enough to influence business decisions, it has the following qualitative characteristic: A. Following historical cost principle B. Neutrality C. Relevant. D. Comparability 13. The analytical measures chosen to analyse a company may be influenced by all except one of the following. Which one? A. Industry type. B. Capital structure. C. Diversity of business operations. D. Product quality or service effectiveness. 14. Foodscape Sdn. Bhd. owned an asset that cost RM32,000. The company sold the asset on 1 January 2019 for RM8,000. Accumulated depreciation on the day of sale amounted to RM26,000. Based on this information, the sale would result in: A. An RM8,000 increase in total assets. B. A RM6,000 cash inflow in the financing activities section of the statement of cash flows. C. A RM3,000 gain in the operating activities section of the statement of cash flows. D. An RM8,000 cash inflow in the investing activities section of the statement of cash flows. 4 15. During 2018 and 2019, Hailing Sdn. Bhd. drove their motor vehicle 100,000 and 80,000 kilometres, respectively, to transport their customers. If they originally purchased the motor vehicle at the beginning of 2018 for RM48,000 and the motor vehicle has an estimated life of 5 years or 300,000 kilometres with an estimated residual value of RM3,000, what amount of depreciation expense should the company record in 2019 using the units of production method? A. RM15,000 B. RM12,000 C. RM9,600 D. RM9,000
