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)

2. (i), (iii) & (iv)
3. (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

2. 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

2. 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

2. Materiality concept

(c ) Separate Business Entity concept

(d) Accrual concept