The three (3) most common cost behavior classifications are:

•A. variable costs, product costs, and sunk costs.

© B. fixed costs, variable costs, and mixed costs.

•C. variable costs, period costs, and differential costs.

•D. variable costs, sunk costs, and opportunity costs.

Clear selection

If fixed costs are RM500,000 and the unit contribution margin is RM40, what is

the break-even point if fixed costs are increased by RM80,000?

O A. 14,500

© B. 12,500

• C. 8,333

O D. 9,667

Clear selection

An accountant has debited an asset account for RM1,500 and credited a liability
account for RM500. What can be done to complete the recording of the

transaction?

:
• A. Nothing further must be done.

O B Debit an owner's equity account for RM1,000.

C. Debit another asset account for RM1,000.

D. Credit a different asset account for RM1,000.

Vaksino Corona Sdn Bhd has 12,000 units in beginning finished goods. If sales
are expected to be 60,000 units for the year and Vaksino Corona Sdn Bhd

desires ending finished goods of 15,000 units, how many units must the

company produce?

O A. 57,000

• B. 60,000

O c. 63,000

D. 70,000
 Which of the following rules is INCORRECT?

•A. Credits decrease the drawing account.

B. Debits increase the capital account.

C. Credits increase revenue accounts.

D. Debits decrease liability accounts.

Clear selection

Cost of goods manufactured is calculated as follows:

A. beginning work in process + direct materials used + direct labor + manufacturing

overhead + ending work in process.

B. direct materials used + direct labor + manufacturing overhead - beginning work in

process + ending work in process.

C beginning work in process + direct materials used + direct labor + manufacturing

overhead - ending work in process.

D. direct materials used + direct labor + manufacturing overhead - ending work in

process - beginning work in process.

Clear selection

Maju Services received a payment for RM18,000 on 1 July 2020 which represents
a 6 months advance payment of rent on a building it rents to a client. Unearned
Rent was credited for the full RM18,000. Financial statements were prepared on
31 July every year. Maju Services should make the following adjusting entry on 31
July 2020:

•A. debit Unearned Rent RM3,000, credit Rental Revenue RM3,000

-
O B. debit Rental Revenue RM3,000, credit Unearned Rent RM3,000

O c. debit Unearned Rent RM15,000, credit Rental Revenue RM15,000

O D. debit Rental Revenue RM15,000, credit Rental Revenue RM15,000

Adjusting entries are required:

and have not yet been

A. because some costs expire with the passage of time
journalized.

B. when the company's profits are below the budget.

are incurred.
O c. when expenses are recorded in the period in which they

D. when revenues are recorded in the period in which they are earned.

Clear selection

Creditors' claims on the assets of a company are called:

• A. expenses.

•B. revenues.

•c. equity.

D. liabilities.

Clear selection

Managerial accounting is different from financial accounting in

that:

A. Managerial accounting is more focused on the organization as a whole and

financial accounting is more focused on subdivisions of the organization.

information.
B. Managerial accounting never includes nonmonetary
C. Managerial accounting includes many projections and estimates whereas financial
accounting has a minimum of predictions.

D. Managerial accounting is used extensively by investors, whereas financial

accounting is used only by creditors.
Clear selection
Vaksino Corona Sdn Bhd expects RM350,000 of credit sales in November and

RM400,000 of credit sales in December. Based on previous collection records,

Vaksino Corona Sdn Bhd is able to collect 80% of its sale in the month of sale and
20% in the following month. How much cash does Vaksino Corona Sdn Bhd
expect to collect for the month of December?

•A. RM280,000

*
B. RM320,000

O C. RM360,000

D. RM390,000

If the liabilities of a business increased by RM75,000 during a

period of time and
the owner's equity in the business decreased by RM30,000 during the same
period, the assets of the business must have:

O A. decreased by RM105,000.

B. decreased by RM45,000.

•C. increased by RM30,000. *

O D. increased by RM45,000.

The first step in the recording process is to:

A. prepare financial statements.

B. analyze each transaction for its effect on the accounts.

O C. post to a journal.

• D. prepare a trial balance.

Clear selection
Berjaya Sakan Enterprise sells its product at RM20 per unit, variable cost RM12
per unit, and the total fixed costs are RM160,000, how many units must be sold
to earn net income of RM80,000?

A. 45,000 units

:
O B. 30,000 units

O C. 24,000 units

D. 18,000 units

SS Enterprise purchased office supplies costing RM8,000 and debited Office

Supplies for the full amount. At the end of the accounting period, a physical
count of office supplies revealed RM4,400 still on hand. The appropriate
adjusting journal entry to be made at the end of the period would be:

A. debit Office Supplies Expense RM4,400, credit Office Supplies RM4,400

B. debit Office Supplies RM3,600, credit Office Supplies Expense RM3,600

C. debit Office Supplies Expense RM3,600, credit Office Supplies RM3,600

• D. debit Office Supplies RM4,400, credit Office Supplies Expense RM4,400

Which of the following represents a period cost?

A. The vice president of sales' salary.

B. Overhead allocated to the

manufacturing operations.

C. Labor costs associated with quality control.

O D. Retirement benefits associated with factory workers.

Clear selection
On 30 November 2020, the balance in Covido Enterprise's supplies account was
RM250. During December, Covido Enterprise purchased supplies of RM300 and
used supplies of RM400. At the end of December, the balance in the supplies
account should be:

✓
O A. RM250 debit.

•B. RM350 credit.

C. RM950 debit.

• D. RM150 debit.

If the machinery account has a balance of RM33,750 and its accumulated

depreciation account has a balance of RM21,000, the book value of the

machinery would be:

A. RM12,750

B. RM21,000
*
C. EM33,750

D. RM54,750

The area of accounting aimed at serving the decision making needs of internal
users is:

•A. financial accounting.

B. managerial accounting.

C. external auditing.

D. security commision reporting.

Clear selection
Which of the following goods would NOT be included in merchandise inventory
for a purchasing company?

A. goods in transit shipped FOB shipping point.

O B. goods on hand in the showroom.

O C. goods in transit shipped FOB destination.

O D. goods ordered and received from the supplier.

Clear selection

Closing entries are made:

• A. in order to terminate the business as an operating entity.

B. so that all assets, liabilities, and owner's capital accounts will have zero balances
when the next accounting period starts.

C. in order to transfer net income (or loss) and owner's drawing to the owner's capital
account.

D. so that financial statements can be prepared.

Clear selection

Which one of the following does NOT appear on the Statement of Financial
Position of a manufacturing company?

O A. Finished goods inventory

B. Work in process inventory

© C. Cost of goods manufactured

D. Raw materials inventory

Clear selection
On 1 December 2020 Corona Enterprise. reported a cash balance of RM12,000.

During December, Ms Corona made deposits of RM3,000 and made

disbursements totaling RM14,000. What is the cash balance at the end of
December?

A. RM1,000 debit balance

•B. RM15,000 debit balance

*
•C. RM1,000 credit balance

D. RM4,000 credit balance

The breakeven point is:

O A. where fixed and variable costs reach the upper level of the relevant range.

B. the level of activity where all fixed costs are recovered.

C. where total revenue equals total costs.

D. where fixed costs meet variable costs.

Clear selection

The statement of owner's equity:

point in time.
A. reports how equity changes at a

B. reports how equity changes over a period of time.

and investing activities over a period

C. reports on cash flows for operating, financing,
of time.

D. reports on cash flows for operating, financing, and investing activities at a point in
time.

Clear selection
Which of the following descriptions about a corporation is most appropriate:

A. Is a legal entity separate and distinct from its owners.

B. Is controlled by the MASB.

C. Has shareholders
who have unlimited liability for the acts of the corporation.

OD. Is the same as a limited liability partnership.

Clear selection

The
broad principles that requires to do adjusting entry at the end of accounting
period are:

A. historical cost principle and matching principle

O B. revenue recognition principle and matching principle

C. full disclosure principle and revenue recognition principle

D. matching principle and full disclosure principle

Clear selection

Costs that are incurred as part of the manufacturing process but are not clearly

associated with specific units of product or batches of production, including all

manufacturing costs other than direct material and direct labor costs, are called:

•A. administrative expenses.

O B. nonmanufacturing costs.

C. sunk costs.

© D. factory overhead.

Clear selection
The three (3) major cost components of a manufactured product are:

• A. Marketing, selling, and administrative costs.

O B. Indirect labor, indirect materials, and miscellaneous factory expenses.

C. Direct materials, direct labor, and factory overhead.

D. Differential costs, opportunity costs, and sunk costs.

Clear selection

All of the following rules are true EXCEPT:

O A. credits decrease the drawing account.

B. debits increase the capital account.

C. credits increase revenue accounts.

D. debits decrease liability accounts.

Clear selection

Which of the following items appears only in a manufacturing company's

financial statements?

U A. Cost of goods sold.

B. Cost of goods manufactured.

C. Goods available for sale.

D. Gross profit.
Fixed costs are RM900,000 and the contribution
margin per unit is RM150. What
is the break-even point?

•A. RM2,250,000

B. RM6,000,000

C. 2,250 units

- D. 6,000 units

pays its employees twice a month, on the 7th and the 21st. On 21
December,
Bagus Sdn Bhd paid employee salaries of RM4,000. This transaction
would

A. increases owner's equity by RM4,000.

*
B. decreases the balance in Salaries Expense by RM4,000.
C. decreases net income for the month by RM4,000.

D. be recorded by a RM4,000 debit to Salaries Payable and a RM4,000 credit to

Salaries Expense.

Amli Laundry purchased equipment for RM2,500. Amri paid RM500 in cash and
signed a note for the balance. Amli debited the Equipment account, credited
Cash and

A. debited the Amli, Capital account for RM2,000.

B. credited another asset account for RM2,000.

I C. credited a liability account for RM2,000.

If sales are RM820,000, variable costs are 62% of sales, and operating income is
RM260,000, what is the contribution margin ratio?

A. 53.1%

:
B. 38%

•C. 62%

D. 32%

Costs that remain constant in total dollar amount as the level of activity changes
are called:

A. fixed costs

B. mixed costs

•C. opportunity costs

D. variable costs

Clear selection

When fixed costs are RM41,500, the variable cost is RM12 per unit, and the

product sells for RM22 per unit, the breakeven point is

OA. 4,150 units.

• B. 8,300 units

O C. 2,075 units.

• D. 6,225 units.

The primary objective of financial accounting is:

O A. to serve the decision-making needs of internal users.

B. to provide financial statements to help external users analyze an organization's

activities

c. to monitor and control company activities.

D. to provide information on both the costs and benefits of looking after products and
services.

Clear selection
If fixed
costs are RM500,000 and the unit contribution margin is RM12, what
amount of units must be sold in order to realize an operating income of
RM100,000?

O A. 5,000

B. 41,667

-
• c. 50,000

D. 58,333

Which of the following statement is TRUE?

A. The left side of a T-account is the credit side.

B. Debits
decrease asset and expense accounts, and increase liability, equity, and
revenue accounts.

C. The left side of a T-account is the debit side.

D. Credits increase asset and

expense accounts, and decrease liability, equity, and
revenue accounts.

Clear selection

The accounting guideline that requires financial statement information to be

supported by independent, unbiased evidence other than someone's belief
or
opinion is the:

A. business entity principle.

C B. monetary unit principle.

O c going-concern principle.

O D. objectivity principle.

Clear selection
Which of the following differences of the accrual basis and cash basis of

accounting are TRUE?

• A. Accrual basis is required by generally accepted accounting principles.

B. Accrual basis records expenses when incurred. Cash basis records expenses when
cash is paid.

C. Accrual basis records revenue when services are performed. Cash basis records
•
revenue when cash is received.

O D All of the above are true.

Clear selection

Under the perpetual inventory system, the entry to record a purchase return
would include a credit to which account?

© A. Merchandise Inventory

•B. Purchases Returns and Allowances

C. Accounts Payable

D. Sales

Clear selection

Contribution margin is:

O A. the excess of sales revenue over variable cost.

•B. another term for volume in the "cost-volume-profit" analysis.

O C. profit.

D. the same as sales revenue.

Clear selection

Which of the following costs is a mixed cost?

• A. Salary of a factory supervisor.

O B. Electricity costs of RM2 per kilowatt-hour.

C. Rental costs of RM5,000 per month plus RM0.30 per machine hour of use

O D. Straight-line depreciation on factory equipment.

Clear selection
Unearned revenues are:

O A. received and recorded as liabilities before they are earned.

B. earned and recorded as liabilities before they are received.

C. earned but not yet received or recorde

O D. earned and already received and recorded.

Clear selection

A credit entry to a general journal may indicate a(n):

O A. decrease in both assets and liabilities.

O B. decrease in assets and increase in liabilities.

C. increase in both assets and liabilities.

D. increase in assets and decrease in liabilities.

Clear selection

Which of the following is an example of a cost that varies in total as the number

of units produced changes?

A. Salary of a production supervisor.

B. Direct materials cost.

C Property taxes on factory buildings.

•D. Straight-line depreciation on factory equipment.

Clear selection

At 1 January 2020, Vaksino Industries reported owner's equity of RM130,000.

During 2020, Vaksino had a net loss of RM30,000 and owner drawings of
RM20,000. At 31 December 2020, the amount of owner's equity is

A. RM130,000.

B. RM140,000.
*
C RM100,000.

D. RM80,000.
The rule that requires financial statements to reflect the assumption that the
or sold, unless evidence
business will continue operating instead of being closed
shows that it will not continue, is the:

A. going-concern principle.

B. business entity principle.

C. objectivity principle.

D. cost principle.

Clear selection