14. The following information showed balances at the end of its first year for Cemai Bhd: RM Cash 5,000.00 Accounts receivable 2,500.00 Prepaid insurance 500.00 Accounts payable 2,000.00 Notes payable 3,000.00 Capital Cermai 1,000.00 Drawing, Cermai 500.00 Revenues 15,000.00 Expenses 12,500.00 What did Cemmai Bhd show as total credits on its trial balance? A. RM21,500.00 B. RM21,000.00 C. RM20,500.00 D. RM22,000.00 15. The usual sequence of steps in the transaction recording process is: A. joumal analyze ledger. B. analyze joumal ledger. C. joumal ledger analyze. D. ledger joumal analyze. 16. Zaidan Enterprises purchased office equipment for RM1,000.00 and office supplies of RM200.00 on account on August 13, 2020. Which of the following joumal entries is recorded correctly and in the standard fomat? RM RM A. Office Equipment... 1,000.00 Account Payable. 1,200.00 Office Supplies 200.00 B. Office Equipment. 1,000.00 Office Supplies 200.00 Accounts Payable. 1,200.00 C. Accounts Payable.. 1,200.00 Office Equipment.. 1,000.00 Office Supplies 200.00 D. Office Equipment. Office Supplies... Accounts Payable. 1,000.00 200.00 1,200.00 17. Which of the following are in accordance with generally accepted accounting principles 22. The adjusted trial balance is prepared A Accrual basis accounting B. Cash basis accounting C. Both accrual basis and cash basis accounting D. Neither accrual basis nor cash basis accounting A. after financial statements are prepared. B. before the trial balance. C. to prove the equality of total assets and total liabilities D. after adjusting entries have been joumalized and posted. 18. The revenue recognition principle dictates that revenue should be recognized in the accounting records Use the following information for questions 23-24. A. when cash is received. B. when it is earned. C. at the end of the month. D. in the period that income taxes are paid. The following worksheet reflects the income statement and balance sheet columns of Nadal Company's 19. The matching principle matches Income Statement Dr. Cr. RM58,000.00 RM48.000.00 Balance Sheet Dr. Cr. RM34,000.00 RM44,000.00 Totals A. customers with businesses B. expenses with revenues. C. assets with liabilities. D. creditors with businesses 23. The net income (or loss) for the period is A. RM48,000.00 income. B. RM10,000.00 income. C. RM10,000.00 loss. D. not determinable. 20. 24. To enter the net income (or loss) for the period into the above worksheet requires an entry to the A gift shop signs a three-month note payable to help finance increases in inventory for the Hari Raya shopping season. The note is signed on November 1 in the amount of RM50,000.00 with annual interest of 12%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest? RM RM A. Interest Expense. 1,000.00 Interest Payable. 1,000.00 B. Interest Expense. 1,500.00 Interest Payable. 1,500.00 C. Interest Expense. 1,000.00 Cash.. 1,000.00 D. Interest Expense. 1,000.00 Note Payable 1,000.00 A. income statement debit columm and the balance sheet credit column. B. income statement credit column and the balance sheet debit column. C. income statement debit column and the income statement credit column D. balance sheet debit column and the balance sheet credit colum. 25. All of the following are property, plant, and equipment except 21. A. supplies. B. machinery C. land. D. buildings A company shows a balance in Salaries Payable of RM40,000.00 at the end of the month. The next payroll amounting to RM45,000.00 is to be paid in the following month. What will be the joumal entry to record the payment of salaries? RM RM A. Salaries Expense 45,000.00 Salaries Payable. 45,000.00 B. Salaries Expense 45,000.00 Cash 45,000.00 C. Salaries Expense. 5,000.00 Cash.. 5,000.00 D. Salaries Expense. 5,000.00 Salaries Payable. 40,000.00 Cash.. 45,000.00 26. A petty cash fund is generally established in order to A. pay for all merchandise purchased on account B. pay employees' wages. C. make loans internally to employees. D. pay relatively small expenditures. 27. A RM100.00 petty cash fund has cash of RM15.00 and receipts of RM80.00. The journal entry to replenish the account would include a credit to 32. An unacceptable way to make a correcting entry is to A Cash for RM85.00 B. Petty Cash for RM85.00 C. Cash Over and Short for RM5.00 D. Cash for RM80.00 A. reverse the incorrect entry B. erase the incorrect entry. compare the incorrect entry with the correct entry and make a correcting entry to correct the accounts. D. correct it immediately up on discovery. 28. On a bank reconciliation, deposits in transit are 33. A. added to the bank balance. B. deducted from the bank balance C. added to the book balance. D. deducted from the book balance. 29. A bank reconciliation should be prepared A lawyer collected RM830.00 of legal fees in advance. He erroneously debited Cash for RM380.00 and credited Accounts Receivable for RM380.00. The correcting entry is RM RM A Cash 380.00 Accounts Receivable. 450.00 Unearned Revenue.. 830.00 B. Cash. 830.00 Service Revenue. 830.00 C. Cash... 450.00 Accounts Receivable. 380.00 Unearned Revenue. 830.00 D. Cash... 450.00 Accounts Receivable 450.00 30. A. whenever the bank refuses to lend the company money, B. when an employee is suspected of fraud. C. to explain any difference between the depositor's balance per books and the balance per bank D. by the person who is authorized to sign checks. Tan Bhd collect the following information to prepare its April bank reconciliation: RM Cash balance per books, 4/30 5,500.00 Deposits in transit 150.00 Notes receivable and interest collected by bank 850.00 Bank charge for check printing 20.00 Outstanding checks 2,000.00 NSF check 170.00 The adjusted cash balance per books on April 30 is 34. The following information extract from the balance sheet: RM Current Assets Stock Debtors Bank Less: Current Liabilities Creditors 10.000.00 25.000.00 15,000.00 28,000.00 A. RM6,160.00 B. RM6.010.00 C. RM4,310.00 D. RM4,460.00 Which of the following statements is not true? A. Acid test ratio = 1.43 B. Profitability cannot be assessed C. Current ratio = 5 D. Acid test ratio=0.7 31. 35. An acid test ratio which is negative would mean: Murthi Bike Company received a RM940.00 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash RM490.00 and a credit to Service Revenue RM490.00. The correcting entry is A. debit Cash, RM940.00; credit Accounts Receivable, RM940.00 B. debit Cash RM450.00 and Accounts Receivable, RM490.00; credit Service Revenue, RM940.00 C. debit Cash, RM450.00 and Service Revenue, RM490.00; credit Accounts Receivable, RM940.00 D. debit Accounts Receivable. RM940.00; credit Cash, RM450.00 and Service Revenue, RM490.00 A. The firm may be insolvent B. Current liabilities are larger than current assets c A mistake has been made in the calculation D. Inventory levels are very high 36. Given the following information: RM RM 100,000.00 Sales Less: Cost of Goods Sold Opening stock Add :Purchases 15,000.00 64,000.00 79,000.00 7,000.00 Less: Closing Stock Gross Profit 72,000.00 28,000.00 The inventory turnover for the firm would be A. 2.54 times B. 9.1 times C. 6.54 times D. 4.8 times 37. To assess how efficient the firm's production of goods is, one may wish to examine changes in which ratio? A. Gross margin B. Net margin C. Gearing D. Inventory tumover 38. Which group of ratios are suppliers to a firm unlikely to be interested in? A. Capital structure B. Profitability C. Liquidity D. Shareholder 39. The following table shows a comparison between the terminology of financial statements used by profit-oriented and non-profit-oriented organizations. Which statement is NOT true? Profit-oriented organisation Non-profit-oriented organisation A. Trading and Profit and Loss Income and Expenditure Account Account B. Net Profit Surplus of Income over Expenditure C. Net Loss Deficit of Income over Expenditure D. Accumulated Fund = Assets Capital = Assets - Liabilities - Liabilities