50. The following are the year end balances in RZ's ledgers: RM Sales 43,000 Purchases 16,000 Equipment 22,000 Overdraft 8,000 Inventory 19,000 Capital 6,000 What is the trial balance total? RM43,000 RM57,000 RM63,000 RM114,000 A. B. C. D. 51. After completing his final accounts, the owner found that he had understated a prepayment. How the business's net profit and capital affected by the correction of the error? Net profit Capital A. increased increased B. increased decreased C. decreased increased D. decreased decreased 52. Draft accounts report a profit of RM11,855. However, an accrual of RM398 was treated as a prepayment, and a prepayment of RM480 was incorrectly recorded as RM522. What is the correct profit? A RM11,017 B RM11,115 C RM11,499 D RM12,693 53. Which of the following errors would be found by extracting a trial balance? A A transaction has been completely missed in the accounts B The double entries have been made the wrong way round C Different figures have been entered for the debit and credit entries D An expense item has been posted to a non-current asset account. 51. At 31 March 2021 a business was owed RM17,744 by her customers. At the same date the provision for doubtful debts was RM3,500. How should these balances be reported on the balance sheet at 31 March 2021? A RM44,244 as a current asset B RM3,500 as a current asset and RM47,744 as a current liability C RM47,744 as a current asset and RM3,500 as a current liability D RM51,244 as a current asset 55. A cheque paid by you, but not yet passed through the banking system, is: A. A dishonoured cheque B. A credit transfer C. An unpresented cheque D. An uncredited lodgement 56, Favourable balance of cash book implies that A. Credit balance of cash book B. Debit balance of cash book C. Bank overdraft D. Adjusted balance of cash book 57. Which of the following transactions would cause an increase in both the assets and owners' equity? A. The purchase of a delivery van with cash obtained from a bank loan B. The recording of revenue for services provided to a customer on account C. The collection of an accounts receivable which was the result of services provided on account D. The purchase of goods from a supplier on account 58. A bank reconciliation should be prepared: 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 with the balance per bank. D. by the person who is authorized to sign checks. 59. A company changes from straight line method of depreciation to reducing balance method. Which accounting principle has not been applied? A. consistency B. going concern C. historical cost D. materiality 60. The fundamental qualitative characeristics of accounting information is A. Relevance B. Comparability C. Consistency D. Verifibiality 61. Which of the followings is NOT the accounting process A. Recording B. Communicating C. Identifying economic events D. Coding 62. A sole trader, has an accounting year ending on 31 January. The following relate to the year ended 31 January 2021: Inventory at 31 Jan. 2021 Inventory at 31 Jan. 2020 Purchases Sales Carriage outwards Carriage inwards RM 7,000 8,000 40,000 60,000 3,000 2,000 The gross profit for the year ended 31 January 2021 will be: A. B. C. D. RM11,000 RM17,000 RM19,000 RM20,000 63. A statement of financial position: A. provides external users with all of the financial information that they need in order to make business decisions B. shows the assets, liabilities and owner's equity of a business entity at a particular point in time C. shows the assets, liabilities and owner's equity of a business entity at their current market value D. shows how much income the entity earned for a particular period of time 61. Which of the following accounting formula is correct? A. Cost of goods sold = closing inventory + net purchases - opening inventory Cost of goods sold = closing inventory + net purchases + opening inventory C. Cost of goods sold = opening inventory net purchases closing inventory D Cost of goods sold = opening inventory - net purchases + closing inventory B. 65. The payment of a liability: A. decreases assets and liabilities. B. increases assets and decreases liabilities. C. decreases assets and increases liabilities. D. None of the above 66. Valuing assets at their buying price is consistent with the A. Matching assumption B. Going concern assumption C. Historical cost assumption D. Consistency assumption 67. Which of the following is NOT a service business A. Provide medical consultancy B. Selling medical insurance C. Selling computer equipment D. Provide computer services 68. Which statement regarding equity is true? A. It is decreased by net profit B. It is fixed at the amount initially contributed by the owner C. It is the claim on the net assets of the entity D. None of the above 69. The value given to assets in the statement of financial position is: A. equal to its carrying value. B. dependent on the valuation method used. C. unrelated to the financing method used to purchase it. D. All of the above 70. The following best describe a private company except: A. It is a business that is owned by two or more individuals B. It can be formed when two or more individuals agree to start a business together and share its profit or loss C. It is has limited liabilities D. It is a separate legal entity