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    Tutorial 1

    Uploaded by

    uyiee
    This document contains a 10 question quiz on accounting concepts for the course BKAL1013 Business Accounting. It also includes an accounting equation worksheet with transactions to analyze the impact on the basic accounting equation of Assets = Liabilities + Owner's Equity. The quiz covers topics like the different fields of accounting, the accounting equation, the accrual basis of accounting, and the purposes of financial accounting.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Tutorial 1

    Uploaded by

    uyiee
    278 views4 pages
    This document contains a 10 question quiz on accounting concepts for the course BKAL1013 Business Accounting. It also includes an accounting equation worksheet with transactions to analyze the impact on the basic accounting equation of Assets = Liabilities + Owner's Equity. The quiz covers topics like the different fields of accounting, the accounting equation, the accrual basis of accounting, and the purposes of financial accounting.

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    This document contains a 10 question quiz on accounting concepts for the course BKAL1013 Business Accounting. It also includes an accounting equation worksheet with transactions to analyze the impact on the basic accounting equation of Assets = Liabilities + Owner's Equity. The quiz covers topics like the different fields of accounting, the accounting equation, the accrual basis of accounting, and the purposes of financial accounting.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    278 views4 pages

    Tutorial 1

    Uploaded by

    uyiee
    This document contains a 10 question quiz on accounting concepts for the course BKAL1013 Business Accounting. It also includes an accounting equation worksheet with transactions to analyze the impact on the basic accounting equation of Assets = Liabilities + Owner's Equity. The quiz covers topics like the different fields of accounting, the accounting equation, the accrual basis of accounting, and the purposes of financial accounting.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    BKAL1013 Business Accounting

    TUTORIAL 1
    DUE DATE: 30th September 2019 (DURING LECTURE TIME)

    1. The accounting profession can be divided into three major categories; specifically, the
    practice of public accounting, private accounting, and governmental accounting. A
    somewhat unique and important service of public accountants is:
    A. Financial accounting.
    B. Auditing.
    C. Managerial accounting.
    D. Cost accounting.

    2. Which of the following transactions would have no impact on stockholders’ equity?


    A. Dividends to stockholders.
    B. Purchase of land from the proceeds of a bank loan.
    C. Net loss.
    D. Investments of cash by stockholders.

    3. Accounting concepts must be defined clearly and well understood by both who prepare
    financial statements and use the information therein for decision making because of the
    following reasons:
    i. The information in financial statements then become more meaningful
    ii. It would assist accountants to account for unusual transactions
    iii. It would assist Standard Makers to be consistent in their pronouncements
    iv. It would improve comparability of financial statements

    Which of the above statements are CORRECT?


    A. i & ii
    B. i, ii & iii
    C. ii, iii, & iv
    D. All four

    1
    BKAL1013 Business Accounting

    4. In times of rising prices accounting on the basis of the historical cost concept would tend
    to:
    A. Inflate profit and inflate assets
    B. Understate profit and inflate assets
    C. Inflate profits and understate assets
    D. Understate profit and understate assets

    5. In the financial statements issued by large companies like Imperial Chemical Industries
    (ICI) the amounts stated are rounded off to the nearest million pounds. The reason for
    this is:
    A. To keep details secret from rival companies
    B. To show how big their company is
    C. The materiality concept
    D. Because this is currently fashionable

    6. The expenses relating to the proprietor and his household should be treated as drawings
    rather than as business expenses on the basis of which of the following accounting
    concepts:
    A. Conservatism concept
    B. Separate entity concept
    C. Going-concern concept
    D. Matching concept

    7. Which of the following statements is INCORRECT in relation to financial statements:


    A. It should convey information in a consistent and understandable way
    B. The information included in it should be relevant and reliable
    C. An amount/item may not be reported separately unless it is material for decision
    making
    D. When identifying information for inclusion in it subjectivity is not permitted

    2
    BKAL1013 Business Accounting

    8. Which of these is NOT included as a separate item in the basic accounting equation?
    A. Assets
    B. Revenues
    C. Liabilities
    D. Owner’s equity

    9. The accrual basis of accounting records revenues when they are:


    A. Collected
    B. Earned
    C. Contracted
    D. Readily available for use

    10. What is the main purpose of financial accounting?


    A. Organise financial information
    B. Provide useful, financial information to outsiders
    C. Keep track of company expenses
    D. Minimise company taxes

    3
    BKAL1013 Business Accounting

    PART B: ACCOUNTING EQUATION

    With referring to the basic accounting equation: Assets = Liabilities + Owner’s Equity,
    determine the effect of the following transactions to the equation.

    April 1 The following assets were transferred to be used for the business, by the owner:
    Cash RM250,000
    Furniture RM 70,000
    Equipment RM 40,000
    7 Purchased supplies for a month, RM200, cash.
    8 Recorded cash collected from services revenue during April amounted,
    RM12,500.
    10 Purchased office equipment on account, RM2,400.
    13 Provided services to a customer RM2,000, on account.
    19 Received cash from customers on account, RM1,200.
    25 Paid creditor for equipment purchased on April 10, RM1,100.
    29 Withdrew cash for personal use, RM600.
    30 Rented a shop and paid rent for April RM500.

    END OF QUESTIONS

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