CONFIDENTIAL 1 AC/MAY2022/ACC117/106/ONLINETEST1

UNIVERSITI TEKNOLOGI MARA

ONLINE TEST 1

COURSE : INTRODUCTION TO FINANCIAL ACCOUNTING/

INTRODUCTION TO FINANCIAL ACCOUNTING
AND REPORTING
COURSE CODE : ACC117/106
EXAMINATION : MAY 2022
TIME : 1 HOUR 30 MINUTES

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of THREE (3) questions.

2. Answer ALL questions. Start each answer on a new page.

3. Answer the question in your own Answer Paper.

4. Answer ALL questions in English.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 6 printed pages

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PART A: True and False Questions

State whether each of the following statements is True or False.

1. Individuals who manage the business are known as internal users such as owner, manager,
employees and public accountants.

2. The number of owners in a general partnership can range from 2 to 20.

3. Unlimited liability of a business is when its members have a joint obligation to meet any
insufficiency in the assets of the business to enable settlement of any outstanding liability.

4. The similarities between Klinik F&E and Qisya Bookstore are that both businesses raise
capital by issuing shares.

5. Financial information provided in the financial statements must be free of error and perfectly
accurate.

6. The sooner the accounting information is available the more useful it is.

7. Predictive value means that the information provides feedback on previous evaluations.

8. The going concern assumption assumes that the business will continue for a long period of
time to carry out its existing objective and commitments.

9. Copyright is classified as a tangible asset.

10. Allen studio received a commission from the supplier for facilitating sales in cash. The
journal entry to record the transaction in Allen’s book is debit commission and credit cash.

(Total: 10 marks)

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PART B: Multiple Choices Questions.

This part consists of TEN (10) multiple-choice questions. Choose the most suitable answer.

1. All the followings are characteristics of a Partnership, EXCEPT ______.

a. capital contributed by partners.

b. managed and controlled by partners.
c. has legal obligation to keep and prepare accounts.
d. owned by 2 – 20 partners.
(1 mark)

2. The following are the purpose of accounting information EXCEPT for ______.

a. decision making of the users.

b. to evaluate the performance of the business.
c. to avoid misleading financial statement.
d. None of the above.
(1 mark)

3. Which of the following is the external user of accounting information for Fashion Star Sdn
Bhd?

a. Clerk of Fashion Star Sdn Bhd

b. Mr. Stanley, one of the potential investors of Fashion Star Sdn. Bhd.
c. Operation Manager of women product line in Fashion Star Sdn Bhd.
d. Puan Mariam, one of Fashion Star Sdn Bhd's shareholders.
(1 mark)

4. The term JOURNALISING in the accounting process refers to ______.

a. The total amount will be posted to the ledger

b. The process of recording transactions in the journals
c. Prepare the financial statement based on the list of balances in the trial balance
d. Adjustment to journal due to errors
(1 mark)

5. If financial data has predictive, confirmatory, or both values, it can influence consumers'
decisions. This statement follows ________ characteristic.

a. Faithful representation
b. Relevance
c. Comparability
d. Verifiability
(1 mark)

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6. Puan Aminah observe the clerk counting the business cash received for the day before
closing the accounts. This statement follows ________ characteristic.

a. Comparability
b. Timeliness
c. Verifiability
d. Understandability
(1 mark)

7. Mei Ling has recently opened a Floweriest Shop, and she has meticulously recorded all of
her business transactions in her shop's accounting records. In the Floweriest Shop books
of accounts, she also takes account of her own automobile. This statement would violate
________ concept.

a. Going concern concept

b. Historical cost concept
c. Business entity concept
d. Money measurement concept
(1 mark)

8. A Pharmacist owner sells all kinds of medicine. She records all the purchases and sales in
the accounting books in terms of Ringgit Malaysia (RM). This is in accordance with the
__________ concept.

a. Money measurement concept

b. Going concern concept
c. Historical cost concept
d. Business entity concept
(1 mark)

9. Tudung Cotton & Co sold goods worth RM10,000 on credit to Raya Sakan Sdn Bhd.
Determine the effect of this transaction on the accounting equation.

a. Increase revenue, increase liability

b. Increase revenue, increase asset
c. Increase asset, decrease asset
d. Increase expense, decrease liability
(1 mark)

10. Purchased contact lens from Korea Optic for resale worth RM8,500 on credit. Determine
the double entry of this transaction.

a. Debit stock, credit account receivable

b. Debit purchase, credit account receivable
c. Debit purchase, credit account payable
d. Debit cash, credit bank
(1 mark)
(Total: 10 marks)

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PART C

QUESTION 1

Afiq Sdn Bhd is a newly established pharmacy company which began its operation on 1 April
2022 and is located in Segamat, Johor. The following was extracted for the month of April 2022:

Date Transactions
(April)

1 Started a business with RM100,000 cash at bank and RM55,000 vehicle

3 Paid office rental RM1,300 by cheque

Bought office furniture RM10,000, computer RM2,500 and printer RM1,500

4
paid by cheque

6 Purchased inventories RM18,000 on credit from LabTech Bhd

12 Sold inventories to Ronasutera on credit RM8,000

14 Sold inventories to D’Herba and received cash RM5,500

Received cheque from Ronasutera RM7,500 being a full settlement of the

16
amount owed

19 Purchased machine on credit from BK Lab RM30,000

22 Goods returned from D’Herba amounting RM200 and paid cash to them

Afiq took inventories amounted RM200 for his personal sponsorship for the
26
Syawal feast organized by Majlis Perbandaran Segamat

Paid a cheque to LabTech Bhd for the amount due after deducting a cash
28
discount of RM500

30 Paid salaries RM3,000 and utility expenses RM1,500 by cash

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Required:

Using the format given below, answer the following questions:

Example: March 2 : Paid electricity bill by cheque amounting RM100.

Date a. Effects b. Journal entry
Increase Decrease Debit Credit
March 2 Expenses Asset Electricity Cash at Bank

a. Identify the effects (i.e., Increase or Decrease) of the transactions on Asset, Liability,
Owner’s equity, Revenue or Expense.
(15 marks)

b. Determine the accounts to be debited or credited.

(15 marks)
(Total: 30 marks)

END OF QUESTION PAPER

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