CHAPTER 1: INTRODUCTION TO ACCOUNTING

Question 1
(i) Explain the definition of accounting
(ii) Name three (3) accounting professional bodies in Malaysia and their main functions.
(iii) List the differences between accounting and bookkeeping.

Question 2
(i) Give two (2) examples of internal users and the importance of accounting
information for each user.
(ii) State two (2) examples of external users and the importance of accounting
information for each user.

Question 3
(i) Kaisara starts a book distribution business worldwide with a capital contribution of
RM50,000. Kaisara offers Aisyah to invest in her business by offering benefits in
accordance with the amount of capital contributed by Aisyah.
a) What type is Kaisara’s business?
b) If Aisyah accepts the offer, what is the type of their business?
c) State two (2) business characteristics by referring to (b).
(ii) List three (3) types of business ownership. State an advantage of each type of
business ownership.
(iii) Explain two (2) advantages and two (2) disadvantages of sole proprietorship.
(iv) Explain three differences between sole proprietorship, partnership and company.

Question 4
State four (4) types of financial statements.