A MULTIPLE CHOICE QUESTIONS (Total: 50 marks) INSTRUCTION: Answer ALL questions. No Need Explaination 1. Master Sdn Bhd can be regarded as: A) Private Limited Company B) Private Partnership C) Public Limited Company D) Sole Proprietor 2. 'The business must incur its expenses in order to obtain its revenue". This statement describes the following Accounting concepts: A) Going Concern B) Matching Concept C) Prudence Concept D) Monetary Concept 3) Which of the below private company business criteria is incorrect? A) Numbers of partner is between 2 to 20 B) Numbers of partner is between 2 to 50 C) Incorporated under Company's Act 1965 D) Limited liabilities 4) Janet Sdn Bhd is preparing to pay Helen Enterprise its outstanding debt during the business transactions. In Helen Enterprise's book, Janet will be the: A) Taxpayer B) Creditor C) Debtor D) Auditor 5) Mr Hailam added RM15,000 into the business by cheque. The transaction was recorded as. A) Dr Hailam, Cr Bank B) Dr Bank, Cr Hailam C) Dr Bank, Cr Capital D) Dr Capital, Cr Bank 6) The transaction below has taken place for Oris Enterprise. Explain on the Accounting equation effect. Asset (RM) Liability (RM) Owner's Equity (RM) A) (4,300) 200 (4,500) Asset (RM) Liability (RM) Owner's Equity (RM) B) 4,300 4,300 - Asset (RM) Liability (RM) Owner's Equity (RM) C) (4,300) - (4,300) Asset (RM) Liability (RM) Owner's Equity (RM) D) (4,500) (4,300) (200) 7) The information below is obtained from the book of Aikon Enterprise as at 1 July 20X3: RM Current Assets 12,400 Non - Current Assets 25,000 Current Liabilities 5,000 Long-Term Liabilities 11,000 Calculate the owner's equity of the business. A) RM13,000 B) RM17,000 C) RM21,400 D) RM 25,400 8) T Identify the possible effect to the Accounting equation. A) Asset Decrease Liability Decrease Owner's Equity - B) Asset Increase Liability - Owner's Equity Increase C) Asset - Liability Decrease Owner's Equity Increase D) Asset Decrease Liability - Owner's Equity Decrease 9) If a business has its liability increased by RM75,000 due to a purchase of asset and has its owner's equity reduced due to expenses of RM30,000, the possible effect to the asset will be: A) Decreased by RM45,000 B) Increased to RM45,000 C) Increased by RM105,000 D) Decreased to RM45,000 10) Mr. Taufik invested RM200,000 into the business. During the first month of the business it has earned RM500,000 from its sales while the expenses was RM240,000. He has also took RM15,000 for his own use. Calculate the amount of owner's equity. A) RM260,000 B) RM445,000 C) RM700,000 D) RM715,000 11) Which from the below is not a business transaction? A) Paid advertisement expenses RM9,400 B) Bought a furniture by credit RM12,000 C) Received bank statement with a balance of RM45,000 D) Received an invoice from supplier for purchases of RM19,500 12) Cordoba Sdn Bhd bought its furniture at a cost of RM37,500 and still owed the vendor RM30,000. The Accounting equation will be: A) Asset increased by RM37,500; Owner's Equity increased by RM37,500 B) Asset increased by RM37,500; Liability increased by RM30,000 C) Asset increased by RM30,000; Liability increased by RM30,000 D) Asset increased by RM37,500; Liability increased by RM37,500 13) The items below would give effect to the owner's equity except: A) Sales B) Purchases C) Rental D) Creditors 14) In selling kebab, the below transaction can be classified as purchase of stocks: A) Equipment B) Furniture C) Meat D) Chairs 15) From the below, identify who will be the external user of Accounting statement. A) Employees B) Investors C) Finance Manager D) General Manager 16) A monthly rental of RM600 is paid at every month end. However, if the rental is not yet paid for three months, the payment is termed as: A) Accruals B) Prepayment C) Loan D) Debts