CONFIDENTIAL 1 AC/NOV 2017/ACC030

UNIVERSITI TEKNOLOGI MARA

COMMON TEST

COURSE : INTRODUCTION TO ACCOUNTING

COURSE CODE : ACC030
EXAMINATION : NOVEMBER 2017
TIME : 2 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of THREE (3) parts: PART A (5 Questions)

PART B (5 Questions)
PART C (3 Questions)

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

3. Do not bring any material into the examination room unless permission is given by the
invigilator.

4. Please check to make sure that this examination pack consists of :

i) the Question Paper

ii) an Answer Booklet – provided by the Faculty

5. Answer ALL questions in English

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

This examination paper consists of 5 printed pages

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PART A

This part consists of FIVE (5) multiple choice questions. Choose the most suitable
answer.

1. Which of the following process is NOT part of bookkeeping?

a. Classifying
b. Recording
c. Reporting
d. Summarizing
(1 mark)

2. “Sorting accounting data into orderly and meaningful manner”. The following statement
referring to the process of:

a. Classifying
b. Recording
c. Reporting
d. Summarizing
(1 mark)

3. Which of the following users of accounting information is an internal user?

a. Creditor
b. Tax authorities
c. Chief operating officer
d. Customer
(1 mark)

4. Which of the following is part of fundamental qualitative characteristic of financial

statements?

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

5. Residual interest in the assets of an entity after deducting all its liabilities referring to:

a. Income
b. Expense
c. Liability
d. Equity
(1 mark)
(Total: 5 marks)

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PART B

This part consists of FIVE (5) statements. State whether each statement is True (T) or
False (F).

1. Ledgers need to be prepared before journalizing transactions into journals.

2. Financial statements are the end products of accounting in an accounting cycle.

3. The objective of financial reporting is to provide information about the reporting entity
that is useful to existing and potential investors, lenders and other creditors in making
decisions about providing resources to the entity.

4. Comparability means that different knowledgeable and independent observers could

reach consensus, although not necessarily complete agreement, that a particular
depiction is a faithful representation.

5. Liabilities are fund supplied by external parties to the business for acquisition of assets.

(Total: 5 marks)

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PART C

QUESTION 1

Growgreen Sdn Bhd closes its account on 31 December every year. The principle activity of
the entity is selling reading materials. The entity prepare its account with assumption that the
entity will be in operation in the foreseeable future. Besides that, all information presented in
the financial statements are free from error and bias. The following are extract of balances
as at 30 September 2017:

RM’000
Cash 125,000
Trade receivables 45,000
Sales 850,000
Electricity 12,000
Short term loan 25,000
Trade payables 55,000

Required:

a. Outline TWO (2) characteristics of the above entity.

(2 marks)

b. List TWO (2) accounting concept applied on the above situation.

(2 marks)

c. Classify the above balances into asset, liability, equity, revenue and expense
(3 marks)
(Total: 7 marks)

QUESTION 2

Compute the missing figures

No. Liabilities Assets Owner’s Equity

RM RM RM
a ? 450,000 230,000
b 15,000 ? 32,000
c 23,000 96,000 ?
d 85,700 ? 63,300
e ? 49,500 15,500

(Total: 5 marks)

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QUESTION 3

Identify the effects (increase/decrease) of the following transactions to asset, expense,

owner’s equity, revenue and liability and state the journal entries using the following
format. The answer for the first transaction was provided as example:

Date Effects Journal Entry

Increase Decrease Debit Credit
1 Jun Asset Cash Sales
Revenue

Date Transactions
June
2017
1 Cash sales RM5,000. (Example)
5 Credit purchased from Mesra Trading RM9,000.
12 Paid salary and wages RM5,700 by cheque.
16 Received cheque for goods sold RM2,250.
20 Returned goods to Mesra Trading RM300.
22 The owner took cash for personal use RM1,000.
28 Part of the shoplot was rented out and received a cheque amounting RM500
as rental income for June 2017.
(Total: 18 marks)

END OF QUESTION PAPER

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