Q1). The business rather than its owner is the reporting unit. What concept the above statement follows?

(a) Reporting Period

(b) Objectivity

(c) Realization

(d) Separate Legal Entity

Q2). Jerry the accountant of Utara Sdn Bhd has a choice of recording stock in hand at RM3,000 and RM3,500. Jerry prefers to record the stock at RM3,000. What concept is Jerry following?

(a) Conservatism

(b) Matching

(c) Realization

(d) Materiality

Q3). CEO of Aftab Sdn Bhd asked the company accountant, Ali not to record the RM50 million sales for the year 2020. However, Ali accidentally record the cost associated with the sales of RM45 million. Which are the concepts that Ali did not follow?

(i) Matching

(ii) Realization

(iii) Conservatism

(iv) Materiality

(a) (i) & (iv)

(b) (ii), (iii) & (iv)

(c) (i) & (ii)

(d) (i), (ii) & (iii)

Q4) Accounting transactions should be supported by sufficient evidence such as invoices or payment vouchers. Which is the concept these statements refer to?

(a) Accruals

(b) Objectivity

(c) Realization

(d) Consistency

Q5) Which of the following is not non-current asset?

(a) Brand

(b) Shares in other company

(c) Motor Vehicle

(d) Debtors

Q6) General Journal is best described as___________________.

(a) Second book of entry

(b) T account

(c) List of all debit and credit balances

(d) Identify which accounts need to be debited and credited

Q7) Dividend will reduce ________________?

(a) Owner Investment

(b) Assets

(c) Liabilities

(d) None of the above

Q8) Buy RM100,000 worth of Proton Perdana by using bank loan would be recorded in the ledger accounts as?

(a) Dr. Proton Perdana 100K & Cr. Bank 100K

(b) Dr. Proton Perdana 100K & Cr. Creditors 100K

(c) Dr. Proton Perdana 100K & Cr. Long Term Loan 100K

(d) Dr. Proton Perdana 100K & Cr. Short Term Loan 100K

Q9) When will Company recognize Revenue and Expenses under Accruals concept?

(i) Expenses Incurred

(ii) Revenue Earned

(iii) Revenue Paid

(iv) Expenses Paid

(a) (ii) & (iv)

(b) (i) & (ii)

(c) (i), (ii) & (iv)

(d) (i), (ii), (iii) & (iv)

Q10) 2GC Sdn Bhd bought computer on account worth RM5,000. The next day 2GC pay the creditor in full. These transactions will:

(a) Increase assets & reduce assets

(b) Increase assets & increase liabilities

(c) Increase assets & reduce liabilities

(d) Reduce assets & reduce liabilities

Q11) Income tax expenses will reduce ________________.

(i) Shareholders capital

(ii) Net Profit

(iii) Assets

(v) Liabilities

(a) (i) & (ii)

(b) (i), (ii) & (iv)

(c) (ii), (iii) & (iv)

(d) (ii) & (iv)

Q12) Failure to prepare the adjusting entries for prepaid expenses will __________ and ____________ of the Company.

(a) Understate Net Income & Overstate Assets

(b) Overstate Net Income & Overstate Assets

(c) Understate Net Income & Understate Assets

(d) Overstate Net Income & Understate Assets

Q13) Failure to recognize accrued expenses will ____________ and __________ of the Company

(a) Understate Expenses & Understate Liabilities

(b) Overstate Expenses & Overstate Liabilities

(c) Understate Expenses & Overstate Liabilities

(d) Overstate Expenses & Understate Liabilities

Q14) The functions and powers of Malaysian Accounting Standard Board (MASB) include the following except for:

(a) Issues accounting and financial reporting standards in Malaysia

(b) Review and revise the existing accounting standards

(c) Ensure that Malaysian Accounting Standards (MAS) are consistent with International Accounting Standards

(d) Provide view in issuing the MAS

Q15). When do you record expenses and revenue under Accrual Concept?

(a) Incurred & Earned

(b) Incurred & Received

(c) Paid & Received

(d) Paid & Earned

Q16) Accountants record business transactions based on standards issued by MASB. The concept that can explain the reason for doing so would be?

(a) Materiality Concept

(b) Conservatism Concept

(c) Objectivity Concept

(d) Realisation Concept

Q17) Financial Statements of a company include the following, except for?

(i) Statement of financial position

(ii) Statement of Profit or Loss

(iii) Statement of Cash flows

(iv) Statement of Changes in Equity

(a) (i), (ii), (iii) & (iv)

(b) (i), (ii) & (iii)

(c) (i), (ii) (iii) & (iv)

(d) None of the above

Q18 Hire purchase loan for motor vehicle where the tenure of the loan is 5 years, will be recorded in which section of the company balance sheet?

(a) Non Current Assets

(b) Current Assets

(c) Current Liabilities

(d) Non Current Liabilities

Q19 & Q20 are based on the following information:

As at 31^st December 2020, Amanah Amir Sdn Bhd (AASB) has the following items in their ledger account, Motor Vehicle RM50,000, Bank RM50,000, Stocks RM15,000, Bank Loan RM50,000, Debtors RM20,000 and Creditors RM15,000.

Q19) What was AASB capital as at 31^st December 2020?

(a) RM70,000

(b) RM50,000

(c) RM100,000

(d) RM20,000

Q20). On 1^st January 2021, AASB buy computer worth RM5,000 using the company cheque. How much the company assets would be after these transactions?

(a) RM120,000

(b) RM125,000

(c) RM130,000

(d) RM135,000

Q21). Pay creditors of RM10,000 using the company cheque will result in?

(a) Reduce liabilities & Reduce assets

(b) Reduce assets & Increase assets

(c) Increase liabilities & Increase assets

(d) Increase liabilities & Reduce assets

Q22). Received RM15,000 from Ikhlas Ali Sdn Bhd (IASB) as a settlement of their outstanding debts will be recorded in the journal as:

I. Debit IASB & Debit Bank

II. Debit IASB & Credit Bank

III. Credit IASB & Credit Bank

IV. Credit IASB & Debit Bank

Q23) ZISB paid electricity RM1,000 using the company cheque. The effect of these transactions on ZISBs Income Statement and Balance Sheet would be:

(a)Reduce Profit & Reduce Owners Equity

(b)Increase Profit & Increase Owners Equity

(c )Increase Profit & Reduce Owners Equity

(d)Reduce Profit & Increase Owners Equity

Q24) As per mentioned below are the purpose of preparing Trial Balance except:

(i) To check whether the business transactions have been accurately posted to each ledger account.

(ii) To facilitate the accountant in preparing the financial statements

(iii) To check whether debit balances equal credit balances

(iv) To check whether any error has been made or not

(a) (i), (ii) & (iii)

(b) (i), (iii) & (iv)

(c) (i), (ii), (iii) & (iv)

(d) (i), (ii) & (iv)

Q25) What are the appropriate transactions to record the payment of RM12,000 car insurance in advance via cheque?

(a) Dr. Insurance & Cr. Bank

(b) Dr. Insurance & Cr. Prepaid Insurance Charges

(c ) Dr. Prepaid Insurance Charges & Cr. Bank

(d ) Dr. Prepaid Insurance Charges & Cr. Insurance Charges

Q26) What would be the effect of not recording Accrued Telephone Charges in the company account?

(a) Understate Net Profit & Overstate Liabilities

(b) Understate Net Profit & Understate Liabilities

(c ) Overstate Net Profit & Overstate Liabilities

(d ) Overstate Net Profit & Understate Liabilities

Q27). Catherine set up her own bridal company in the year 2003. During December 2003 she bought bridal garments that she used for her own weeding on the same month. These bridal garments were recorded as the company assets. By doing so she has violated which accounting concept?

(a) Objectivity concept

(b) Materiality concept

(c ) Separate Business Entity concept

(d) Accrual concept

Q28). Company need to record expenses and revenues when expenses are incurred and revenue are earned. Which concept described this statement?

(a) Objectivity concept

(b) Materiality concept

(c) Separate Business Entity concept

(d) Accrual concept

Q29). On 1^st January 2020, ASSB paid via cash RM1,200 for rental expenses. This expenditure will result

in.. (assuming other items remain the same)?

I Assets increased by RM1,200 and Assets decreased by RM1,200

II Liabilities decreased by RM1,200 and Assets decreased by RM1,200

III Equity increased by RM1,200 and Assets decreased by RM1,200

IV Equity decreased by RM1,200 and Assets decreased by RM1,200

Q30). ASSB paid liabilities for RM5,000 will result in (assuming other items remain the same)?

(a) Equity decreased by RM5,000 and Assets decreased by RM5,000

(b) Assets decreased by RM5,000 and Liabilities decreased by RM5,000

(c ) Revenue decreased by RM5,000 and Assets decreased by RM5,000

(d ) Expenses decreased by RM5,000 and Assets decreased by RM5,000

Q31). Received telephone bills from Telekom Malaysia Berhad will be recorded in journals as?

(a) Dr Telephone Charges and Cr Bank

(b) Dr Telephone Charges and Cr Prepaid Telephone Charges

(c) Dr Telephone Charges and Cr TMB

(d) Dr TMB and Cr Telephone Charges

Q32) Chongs Brothers Sdn Bhd (CBSB) received RM5,000 from their debtors Jennifer & Sisters Sdn Bhd (JSSB). These transactions will be recorded in the journals as?

(a) Dr CBSB and Cr JSSB

(b) Dr Bank and Cr JSSB

(c) Dr Bank and Cr CBSB

(d) Dr CBSB and Cr Debtors

Q33) Buy computers on credit to be sold to the company customers will be recorded as?

(a) Dr Purchases and Cr Bank

(b) Dr Purchases and Cr Creditors

(c) Dr Computers and Cr Bank

(d) Dr Computers and Cr Creditors

Q34) As stated below, these are some of the purpose in preparing Trial Balance. Choose only the correct statement.

(i) To check whether the business transactions have been accurately posted to each ledger account.

(ii) To facilitate the accountant in preparing the financial statements

(iii) To check whether debit balances equal credit balances

(iv) To check whether any error has been made or not

(a) (i), (ii) & (iii)

(b) (i), (iii) & (iv)

(c) (i), (ii), (iii) & (iv)

(d) (i), (ii) & (iv)

Q35) Prepaid Expenses will be recorded in which section of Financial Statements?

(a) Balance Sheet Current Assets

(a) Balance Sheet Current Liabilities

(b) Income Statement Overhead Expenses

(c) Income Statement - Revenue

Q36) These are the accounts that will be transferred to Income Statement except for?

(i) Commission Received.

(ii) Commission Received in Advance

(iii) Telephone Expenses

(iv) Commission Paid

(v) Accrued Bonus

(a) (ii) & (iv)

(b) (i), (ii) & (iv)

(c) (ii) & (v)

(d) (ii), (iv) & (v)

Q37) Makmur Jaya Sdn Bhd (MJSB) paid commission in advance on 1^st July 2020 for RM1,200 via cash. The payment was made for one year. As at 31^st December 2020, the adjustments that need to be recorded in MJSBs books are?

(a) Dr Prepaid Commission RM1,200 and Cr Bank RM1,200

(b) Dr Commission RM1,200 and Cr Prepaid Commission RM1,200

(c) Dr Commission RM600 and Cr Prepaid Commission RM600

(d) Dr Commission RM600 and Cr Bank RM600