7: Which of the following should not be disclosed in the Income Statement (Statement of Profit or Loss and Other Comprehensive Income)?

Hint: Consider the types of accounts that are disclosed in the Income Statement.

Depreciation of equipment.

Accumulated Depreciation of machinery.

Maintenance costs associated with machinery.

Insurance costs associated with machinery.

8: Which of the following should not be disclosed in the Balance Sheet (Statement of Financial Position)?

Hint: Consider the types of accounts that are disclosed in the Balance Sheet.

Rent expense.

Prepaid rent expense.

Accrued rent expense.

Rent payable.

9: ABC Ltd. utilises a postpaid service for its office telephone and internet. On the 15th day of every month, the company pays the previous months telephone and internet expense of RM1,000. What is the Income Statement and Balance Sheet disclosure related to the telephone and internet expense at 31 December 2022?

Hint: Identify if there was an accrual or prepayment of office rental.

Telephone and Internet Expense RM13,000 and RM1,000 Accrued expense

Telephone and Internet Expense RM13,000 and RM1,000 Prepaid expense

Telephone and Internet Expense RM12,000 and RM1,000 Accrued expense

Telephone and Internet Expense RM12,000 and RM1,000 Prepaid expense