25) Which of the principle financial statements demonstrates how well a business has performed over an accounting period? A) Bank reconciliation B) Statement of financial position C) Control account reconciliation D) Statement of profit and loss 26) Which of the following is / are current liabilities? i) Bank overdraft ii) Account receivable iii) Tax payable iv) Capital v) Loan repayable in 1 year A) () and (ii) B) All of the above C) 0), (iii) and (iv) D) ), (iii) and (v) 27) Which of the following is the correct double entry to record credit sales of RM3,500 to Ana? A) Dr Bank RM3,500 Cr Sales RM3,500 B) Dr Cash RM3,500 Cr Anna RM3,500 C) Dr Anna RM3,500 Cr Sales RM3,500 D) Dr Sales RM3,500 Cr Anna RM3,500 28) Which of the following is the correct entry of a cheque of RM2,000 received towards rent? A) Dr Rent RM2000 Cr Bank RM2,000 B) Dr Rent RM2,000 Cr Cash RM2,000 C) Dr Bank RM2,000 Cr Rent receivable RM2,000 D) Dr Cash RM2,000 Cr Rent RM2,000 29) Steve sold goods to Lee. Lee promises to pay the full amount two months after the date of sale. What type of transaction is this from Lee's point of view? A) Cash purchases B) Credit purchase C) Credit sales D) Cash sales 30) Suzanna paid a bank loan of RM50,000 Which of the following is the correct effect upon the accounting equation? A) Decrease in asset by RM50,000 and increase in liability by RM50,000 B) Decrease in asset and liability by RM50,000 C) Increase in asset by RM50,000 and decrease in liability by RM50,000 D) Increase in asset and liability by RM50,000