CONFIDENTIAL AC/TEST2021/ACC106

UNIVERSITI TEKNOLOGI MARA

TEST

COURSE : INTRODUCTION TO FINANCIAL ACCOUNTING

AND REPORTING
COURSE CODE : ACC106
TEST : 3 DECEMBER 2021 (FRIDAY)
TIME : 1 HOURS 30 MINUTES (3.00 PM – 4.30 PM)

THIS TEST CONSISTS OF:

i. PART A - TRUE FALSE QUESTIONS (10 MARKS)

ii. PART B - MULTIPLE CHOICE QUESTIONS (10 MARKS)
iii. PART C - SHORT STRUCTURE (30 MARKS)

TOTAL: 50 MARKS

INSTRUCTIONS TO CANDIDATES

1. Answer All Questions.

2. Only HANDWRITTEN answers (pen only) should be UPLOADED.
3. Please make sure your images are clear, in portrait and A4 size form (on writing pad)
4. Write your name on every page.
5. Save your answers in (1) file ONLY in Pdf Format.
6. Name the file (pdf format) to your FULL NAME (IC)_STUDENT’S ID_GROUP

E.g. NURBAYA BINTI ISMAIL_202054214521_N4AM1202A

7. Recheck the file and make sure the completeness of your answers.
8. Upload your file.
9. You are given 15-20 minutes to upload your file after the test ends. If your upload speeds takes
longer than the stipulated time, snap the upload progress image and send to your lecturer as
proof of the submission in progress.

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

This test consists of 5 pages including cover page

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PART A: TRUE OR FALSE QUESTIONS

This part consists of 10 true false questions. Read the statements carefully. If the
statement is correct, write TRUE. If the statement is incorrect, write FALSE. Write the
answer in your answer sheet/booklet.

1. One of the objectives of financial accounting is to provide financial information to

the external users only.

2. Accounting is a process of classifying, recording, summarizing and

communicating financial information to users.

3. A partnership remains unchanged when a partner dies, retires or a new partner is

admitted to the business.

4. The management is one of an internal user of accounting information.

5. A faithful representation is a situation where financial statements represented a

legal form that is differed from the economic substance.

6. According to the economic entity concept, any economic events of a sole

proprietorship cannot be distinguished from the personal economic events of its
owner.

7. An assumption of a business that is to continue to operate for foreseeable future

is known as the going concern concept.

8. Accounting conceptual framework is established to assist MASB in developing

MFRS Standards that are based on comparability concepts.

9. Mortgage on lease-hold premises is a Non-Current Assets (Tangible).

10. According to the double entry principles, the credit side of an account is used to
record an increase in liabilities.

(10 marks)

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CONFIDENTIAL AC/TEST2021/ACC106

PART B: MULTIPLE CHOICE QUESTIONS

This part consists of 10 multiple choice questions. Choose the most suitable answer
and write the alphabet representing the answer in your answer sheet/booklet.

1. The following statements are true, except:

A. Source documents are the evidence for any economic transactions occurred
in the business.
B. Bookkeeping is the records of all business and owner’s personal transactions.
C. Bookkeeping is a part of accounting cycles.
D. Preparation of financial statements is one of example how business
communicate their financial information to users.

2. Which type of business organization has the following characteristics:

 Book of accounts must be properly kept and audited.
 Capital contributed by shareholders.
 Managed and controlled by board of directors appointed by the
shareholders.

A. Restoran Ahmad Dua Kali Lima

B. Tetuan Athiyah and Assosiates
C. Koperasi Sahabat Insani
D. MusKamal Synergy TT Sdn Bhd

3. The following are the external users of an organization, except:

A. Securities Commission, Inland Revenue Board and Bursa Malaysia.

B. Chief Executive Officer, Bank and Existing Shareholders.
C. Supplier, Government and Potential Customers.
D. Existing customers, Potential Shareholders and Tax Authorities.

4. What is the purpose of accounting?

i. Provide financial information to the users.
ii. Assist the management to make decision.
iii. Can be used as a tool of performance evaluation of the employees.
iv. To increase the wealth of the business.

A. i, ii and iii
B. i, iii and iv
C. i, ii and iv
D. ii, iii and iv

5. An accountant should record assets according to their equivalent cost. This is to

comply the:

A. money measurement concept

B. historical concept
C. materiality concept
D. confirmatory value concept
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CONFIDENTIAL AC/TEST2021/ACC106

6. Which of the following statement describes the comparability concept?

A. Comparable information enables comparison within the organization only and

it is uniformity.
B. Comparable information enables comparison across organization only and it
is uniformity.
C. Comparable information enables comparison within and across the
organization and it is uniformity.
D. Comparable information enables comparison within and across the
organization and it is not uniformity.

7. Which of the following are the accounting assumptions and concepts to be

applied for an organization?

A. Going concern, economic entity, comparability ad neutrality.

B. Going concern, money measurement, timeliness and confirmatory value.
C. Going concern, money measurement, historical cost and economic entity.
D. Going concern, economic entity, comparability and materiality.

8. The separation of business transactions from personal transactions of owners

are known as:

A. Economic entity concept

B. Going concern concept
C. Money measurement concept
D. Completeness concept

9. The following accounting equation is true except:

A. Assets - Liabilities + Revenues = Capital - Expenses

B. Assets + Expenses = Capital + Liabilities + Revenues
C. Assets + Expenses – Revenues = Liabilities + Capital
D. Assets - Liabilities = Capital + Revenues - Expenses

10. The following statement described the principles of double entry, except:

A. Purchased of goods from supplier on credit will debit the purchases account.
B. Cash contributed by the owner of the business will be debited in the capital
account.
C. Withdrawal of cash by the owner of the business for his/her personal usage
will be debited in the drawings account.
D. Sold of good to existing customers on credit will credit the sales account.

(10 marks)

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PART C

Kak Yak Enterprise which is owned by Pak Din started business on 1 November 2021.
Below are the business transactions during the month of November 2021.

Date Transactions
Nov
1 Pak Din brought in RM65,000 cash into the business bank account.
4 Purchased goods worth RM10,000 on credit from Purnama Enterprise.
5 Sold goods on credit RM8,500 to Cik Cun.
8 Returned defective goods worth RM800 to Purnama Enterprise
17 Paid Purnama Enterprise for the amount owed by cheque.
Pak Din took RM1,000 from the bank and RM800 worth of goods for his
20
personal use.
25 Pak Din paid RM600 electricity bill to TNB by cheque.

Required:
a. Identify the effects (increase or decrease) of assets, liabilities, owner's equity,
revenues or expenses for the transactions dated from 1 November 2021 to 25
November 2021.

b. Show the journal entry (debit and credit) of all above transactions.

(Use the format given below to answer the above questions)

Example: November 30 Paid RM2,000 for driver's salary by cash.

Date a. Effects b. Journal Entry

Nov Increase Decrease Debit Credit

30 Expenses Asset Salaries Cash

(30 marks)

END OF QUESTION PAPER

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