PART A: MULTIPLE CHOICE QUESTIONS 1. The following statements pertain to recording transactions. Which of them are NOT TRUE? I. Total debits should equal total credits. II. It is possible to have multiple debits or credits in one journal entry. III. Assets are always listed first in journal entries. IV. Some journal entries will have debits only. A. I and II. B. III and IV. C. I, III, and IV. D. All of the above. 2. Cantik Boutique purchased a one-year hazard insurance policy on March 1 and recorded the RM8,640 premium to prepaid insurance. At its June 30 year-end, Cantik Boutique would record which of the following adjusting entries? A. Insurance expense RM2,880 Prepaid insurance RM2,880 B. Prepaid insurance RM2,880 Insurance expense RM2,880 C. Insurance expense RM2,880 Prepaid insurance RM5,760 Insurance payable RM8,640 D. Insurance expense RM7,200 Prepaid insurance RM7,200 3. At September 30, Daisy Sdn Bhd (DSB) had adjusted account balances in accounts receivable of RM310,000 and RM960 (debit) in the allowance for uncollectible accounts. An analysis of DSB's September 30 accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense for the year should be: A. RM6,200. B. RM5,240. C. RM7,160. D. RM7,190. 4. Who are the real owners of a company? A. Preference shareholders B. Board of Directors C. Ordinary shareholders D. Debenture holders

5. In a company, to whom is dividend given at a fixed rate? A. To ordinary shareholders B. To preference shareholders C. To debenture holders D. To bond holders 6. Delia Co has the following issued shares: 2% Cumulative Preference Shares Ordinary Shares 2,500 units at RM25 per unit 125,000 units at RM 250,000 At the beginning of the year, preference dividends were 3 years in arrears. Delia Cos board of directors proposed to pay a RM2.50 cash dividend on the ordinary shares in the current year. To achieve this, what total amount of dividend must Delia Co declare in the current year? A. RM250,000 B. RM255,000 C. RM256,250 D. RM317,500 7. Cemerlang Company has a working capital of RM1,080,000 and a current ratio of 3 to 1. The amount of Current asset is: A. RM405,000. B. RM540,000. C. RM810,000. D. RM1,620,000. 8. How would a companys working capital be affected if a substantial amount of account payable were paid in cash? A. It would be unaffected. B. It would fall. C. It would increase. D. The change would depend on the relationship between the payables liquidated and current liabilities.

9. On November 1, Trellises Sdn. Bhd. signed a 120-day (assuming a 360-day year), 10% note payable, with a face value of RM9,000. What is the maturity value of the note on March 1? A. RM9,000. B. RM9,150. C. RM9,200. D. RM9,300. 10. Which one of the following best explains how financial reporting is related to economic decision: A. Financial reporting is reporting of financial information by the users to the economic entity. B. Financial reporting is providing financial information by the economic entity that would be useful to users to make economic decisions. C. Financial reporting is reporting financial matters to the economic entity for decision making. D. Financial reporting is providing financial information to the economic entity for the entity to make decisions economically. 11. Which of the following is NOT a characteristic of faithful representation? A. Complete. B. Material. C. Neutral. D. Free from error. 12. The bank statement included a cheque payment of RM 1,250 charged by the bank. The cheque does not belong to the company. This error would be corrected on the bank reconciliation by: A. Debit its cash account RM1,250. B. Credit its cash account RM1,250. C. Inform the bank to add RM1,250 to the companys bank account. D. Deduct RM1,250 from the adjusted cash account balance.

13. Setia Alam Berhad bought a machine at a cost of RM90,000 on 1 January 2018. The machine has an estimated residual value of RM5,000. If the company depreciates its machinery using a diminishing balance method at a rate of 20% per year, what is the carrying value of the machine to be reported on the companys Statement of Financial Position at, 31 December 2019? A. RM73,000. B. RM58,400. C. RM57,600. D. RM72,000. 14. On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include: A. Receipts from the sale of investments. B. Amortisation of patents. C. Payment of cash dividends. D. Cash received from the issuance of ordinary share capital. 15. Cash dividends of RM100,000 were declared for the year 2019. The dividend payable account at the beginning of the year was RM20,000 and at the end of the year was RM35,000. What amount would be reported as payment of cash dividends in the cash flows from finance activities section of the statement of cash flows? A. RM35,000. B. RM85,000. C. RM100,000. D. RM 115,000.