1.Which of the following wrong?

AssetsLiabilitiesCapital

RMRMRM

A. 8000 40004000

B. 550034002100

C. 844038334452

D. 7500 34004100

2.According to the accounting equation. When business purchase inventory on credit the effects are:

A. Asset and liability

B. Liability and owner's equity

C. No change

D. Asset and owner's equity

3.According to the accounting equation. When business incurred prepaid utility expenses. By paying cash the effects are:

A. Assets and liability

B. Liability and owner's equality

C. Both assets side

D. Asset and owner's equality

4.Which of the following accounting equation is correct?

A. Liability=asset - owner's equity

B. Asset=liability=owner's equity

C. Asset= (capital + revenue - expenses - drawings) - liability

D. Owner's equity = asset + liability

5.When owner's equity decreases, bookkeeper should record at: A. Debit side

B. Credit side

C. Both side

D. Liability account

6.Working capital is __________

A.The amount of capital invested by the proprietor

B.The excess of the current assets over the current abilities

C.The capital less drawings

D.The total of fixed assets - current asset

7.Which principle/guideline is associated with the assumption that the company will continue on long enough to carry out its objectives and commitments?

A. Economic entity

B.Going concern

C.Time period

D.Historical cost

8.Which statements is wrong about trial balance?

A. Does not include revenue and expenses

B. If a trial balance is balance that does not mean it s correct

C.Is a list of ledger account balances prepared on a particular date

D. Record the transaction based on balance in ladger.

9.Aqila Enterprise bought computer on credit from Shauki Infotech Sdn Bhd. What is the effect of this transaction?

A.Increase in both asset and liability.

B.Increase in asset and decrease liability.

C.Increase in liability and decrease in asset.

D.Decrease in both asset and liability.

10.The company's net profits for the year is used for the followings EXCEPT:

A.For retentions within the business.

B.To pay tax.

C.To pay staff salaries.

D.To pay dividends.

11.Book keeping differs from accounting. Bookkeeping primarily involves which part of the accounting process?

A.Identification

B.Measurement

C.Recording

D.Communication

12.Which of the following are elements of income statements?

I.Revenue

II.Land

III.Cost of good sold

IV.Credit node

A.I and II only

B.I and III only

C.II and III only

D.All of the above

13.The principle apply in accounting equation is:

I.Matching principle

II.Duality principle

III.Accounting period

IV.Monetary

A.II and II

B.III andIV

C.II and IV

D.All the above

14. Which of the following is NOT an expenses?

A.Salaries and wages payable

B.Electricity bill

C.Depreciation

D.Salaries and wages

15.Which of the following transactions is not recorded in the General Journal?

A.Sales and purchase of inventory on credits

B.Sales of non-current assets by cash

C.Purchase of non-current assets by cash

D.All of the above

16. Which the following statements is FALSE?

A.A trial balance provides a check on the equality of debits and credits

B.A trial balance is a list of all accounts in the ledger with their balance

C.A trial balance proves no error was made during the accounting process

D.A trial balance may be taken at any time the postings are up to date

17.The sales journal contains the following columns as follows EXCEPT :

A. Date

B. Debit

C. Total amount

D. Invoice number

18. Insurance for the year which has not been paid will be recorded as.....

A. Accrued expenses

B. Prepaid expenses

C. Accrued revenue

D. Prepaid revenue

19. The inventory of a business increases when there are .....

A. Sales and returns outwards

B. Sales and returns inwards

C. Purchases and return outwards

D. Purchases and return inwards

20. A financial statement that the best describes the financial position of an organization at a certain point of time is called.....

A. Trial balance

B. Trading, profit and loss account

C. Balance sheet