SECTION A: MULTIPLE CHOICE QUESTIONS 1. Below are the next accounting process following the preparation of unadjusted trial balance, EXCEPT: A. Post closing entries B. Journalise daily transactions C. Prepare financial statement D. Journalise adjusting entries 2. The followings are common types of adjusting entries, EXCEPT A. Accrued wages B. Prepaid insurance C. Purchase of fixed asset D. Unearned fees 3. Which of the followings is the correct category of accounts for adjusting entries? A. Unearned revenue Asset B. Accrued expense Owners Equity C. Prepaid expense Asset D. Accrued revenue - Liability 4. On 1 June 2023, DEF Enterprise paid cash of RM3,600 for 12 months insurance policy. At the end of the month, the remaining balance of the insurance policy is RM3,300. What is the right journal entry to record the difference of RM300? A. Debit Prepaid Insurance; Credit Cash B. Debit Prepaid Insurance; Credit Insurance Expense C. Debit Insurance Expense; Credit Prepaid Insurance D. Debit Cash; Credit Prepaid Insurance 5. The beginning balance of prepaid rent is RM5,000 and after doing adjusting entry, the remaining balance of the account represents . A. liability B. asset C. expense D. capital 6. ZEZ Sdn. Bhd.s supplies account on 1 July 2023 showed a balance of RM1,200 and supplies on hand as of 30 July 2023 totalled RM450. The adjusting entry at the end of the month would be: A. debit Supplies expense RM750, and credit Supplies RM750 B. debit Supplies expense RM450 and credit Supplies RM450 C. debit Supplies RM450, and credit Supplies expense RM450 D. debit Supplies, RM750, and credit Supplies expense RM750 7. What would be the impact of adjusting entry for unearned revenue earned at the end of the month of RM500 during an accounting period? A. Decrease revenue by RM500. B. Decrease net income by RM500. C. Decrease liability by RM500. D. Increase assets by RM500. 8. Depreciation expense using straight line method each year. A. increases B. decreases C. remains constant D. fluctuates 9. The vehicle was purchased for RM70 000. The depreciation expense of the vehicle on 30 September 2023 is RM770. Which of the following is a correct adjusting entry to record the depreciation of a vehicle? A. Debit Vehicle RM70 000; Credit Depreciation Expense RM70 000 B. Debit Accumulated Depreciation Vehicle RM770; Credit Depreciation Expense RM770 C. Debit Depreciation Expense RM770; Credit Accumulated Depreciation Vehicle RM770 D. Debit Depreciation Expense RM70 000; Credit Cash RM70 000 10. Every adjusting entry will not affect . A. assets and liabilities accounts B. revenue and expense accounts C. withdrawal account D. none of the above 11. Emily Bakery purchased an oven for RM13,500. If the accumulated depreciation account has a balance of RM4,050, calculate the book value of the oven. A. RM13,500 B. RM4,050 C. RM9450 D. RM17,550 12. What is the impact to financial statements if adjusting entries of accrued revenue are omitted? A. It understates revenue, net income, assets and owners equity. B. It overstates revenue, net income, assets and owners equity. C. It understates revenues, net income, owners equity and overstates liabilities. D. It overstates net income, assets, owners equity and understates expenses. 13. Which of the following is the correct closing entry for Wage expense? A. Debit Wage expense; Credit Income Summary B. Debit Income Summary; Credit Wage expense C. Debit Capital; Credit wage expense D. Debit Wage expense; Credit Capital 14. Post-closing trial balance will NOT contain . A. revenue, expenses and withdrawal accounts B. assets, liabilities and equity accounts C. assets and liabilities accounts D. revenue and expenses accounts 15. Which of the following is a temporary account? A. Income summary B. Unearned revenue C. Land D. Capital