7. Mia Trading owns machinery that costs RM60,000. It is the policy of the business to charge depreciation over its useful life of 5 years. At the end of its useful life, it is estimated that the residual value is RM4,000. What is the depreciation charge during the year? a. RM12,800. b. RM800. c. RM12,000. d. RM11,200. 8. An expense account has a balance, while a revenue account has a balance. a. Credit; Credit. b. Debit; Debit. c. Debit; Credit. d. Credit; Debit. 9. The following accounts are liability balance, EXCEPT: a. Long from the bank. b. Bank overdraft. c. Loan to Maya. d. Trade payables. 10. A Trial Balance shows a. The extraction of the income statement for a business. b. The assets, liabilities, and owner's equity of a business. c. All the accounts and their balances at a certain date. d. The financial position of a business. 11. The sales journal is a. Used only to record sales on credit. b. Used to record all sales. c. Used only to record cash sales. d. None of the above. 12. Aqila Enterprise bought computers on credit from Mia Infotech Sdn. Bhd. What is the effect of this transaction? a. Decrease in both asset and liability. b. Increase in both asset and liability. c. Increase in liability and decrease in the asset. d. Increase in assets and decrease in liability. 13. What is a net profit? a. Gross profit + other income - expenses. b. Owner's equity fewer drawings. c. Purchases + sales. d. Sales - the cost of goods sold. 14. At the start of the year, Rahim Marketing had total assets of RM450,000 and owner's equity of RM192,000. During the year, assets increased by RM72,000 whereas liabilities decreased by RM84,000. Owner's equity at the end of the year was: a. RM366,000. b. RM258,000. c. RM348,000. 15. A prepaid revenue is BEST described as a a. Current liability. b. Non-current asset. c. Long term liability. d. Current asset