L 8. A business which is a separate legal entity can be a: a. sole trader b. partnership c. company d. all options are businesses which are separate legal entities. a. 9. An advantage of the company form of business is that: a. it has a limited life b. its owner's personal resources are at stake c. it is simple to establish d. its ownership is transferable through the sale of shares 10. Retained earnings at the end of the period are equal to: assets plus liabilities b. profit earned for the period plus retained earnings at the start of the period C. retained earnings at the beginning of the period plus profit earned for the period minus dividends d. retained earnings at the beginning of the period plus profit earned for the period minus liabilities. 11. If total liabilities increased by RM25,000 and equity increased by RM5,000 over a period, then total assets must have changed by? a. RM30,000 increase b. RM25,000 increase c. RM20,000 increase d. RM20,000 decrease a. 12. The duality concept requires that each transaction must be recorded: first as income then as an expense b. in a journal and a ledger c. in two sets of books d. in at least two different accounts 13.Some of ABC's transactions for the month of October are as follows. Which transaction, if any, is an expense for the month of October"? a. Purchased RM50 worth of petrol on credit, to be paid for in November b. Paid RM1,000 off a loan obtained during July C. Paid a mechanic RM250 for repair work carried out in September d. Purchased a photocopier for RM15,000 14.If a car is serviced on 31 May and an invoice is issued, the owner picks up the car on 31 May, the owner sends a cheque to the servicing firm on 4 June, and the firm banks the cheque on 7 June, under accrual accounting, income is recognised by the servicing firm on: a. 31 May b. 4 June c. 7 June d. 5 June