PENINSULA COLLEGE GEORGETOWN

TUTORIAL 1:
Answer all the question below.
SECTION A: SHORT ESSAY
1. What is the meaning of accounting?
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2. Give the definition of bookkeeping?

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3. Describe the step in the accounting process?

4. List down three (3) examples of type of accounting user.

Users Example
a.
Internal user b.
c.
External user a.
b.
c.

5. List down two (2) characteristics of sole proprietorship.

a. …………………………………………………………………………………………
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b. …………………………………………………………………………………………
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SECTION B:
1. The following users are the internal users of accounting information, except
I. Creditors
II. Managers
III. Potential investors
IV. employees
A. I and III
B. I, II and III
C. I, II and IV
D. I, II and IV

2. The following characteristics belong to a business organization:

Characteristics
Number of members 2-50
Capital contribution large
Liabilities Limited
Book of account Must be audited
Which of the answers below best fit the above characteristics?
A. Nasi Lemak Pak Ali Enterprise
B. Poliklinik Rodziah & Family
C. Cahaya Sdn.Bhd
D. Rozie Landscaping bhd.

3. Bookkeeping is different from accounting. Which part of the accounting process

does bookkeeping primarily involve?
A. Identification
B. Measurement
C. Recording
D. Communication

4. The accounting process involves all the following, except?

A. Identifying economics transaction that are relevant to the business
B. Communication financial information users by preparing financial report
C. Recording non-quantifiable economics event
D. Analysing and interpreting economics reports

5. Which of the following statement is incorrect?

A. As a sole trader, the owner is not responsible for the liabilities of the
business when the business goes bankrupt.
B. The minimum number of members of a partnership is two.
C. The partners for the partnership are responsible for the liabilities if the
partnership is bankrupt.

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D. The liability of the shareholders of a limited company is limited to their

investment in company

6. Which type of business organization has the following characteristics?

• Is owned by two to 20 persons
• Has unlimited liability
• Has no legal obligation to audit the account
A. Sole proprietorship
B. Partnership
C. Company
D. None of the above

7. Which of the following are part of the recording process?

A. Analysing transaction
B. Entering transaction in a journal
C. Positing journal entries
D. All the above

8. Which of the following statement best describes the term accounting?

A. Accounting is a process of recording economics events in journals and
ledgers in the proper order, so that the financial statement prepared are
correct.
B. Accounting is a process of keeping business record to determine the
profit made in a financial period.
C. Accounting is technique of recording business data using the double
entry system to produce an accurate trial balance to aid decision making
D. Accounting is a process which involves analysing business data and
recording and communicating financial information of an entity in a
specifies period to be used for decision- making.

9. Which of the following highlights the correct order of the stages in an accounting
cycle?
A. Journalising, financial statement, posting to the ledger and trial balance
B. Posting to the ledger, trial balance, financial statement and journalising
C. Journalising, posting to the ledger, trial balance and financial statement
D. Posting to the ledger, journalising, financial statement and trial balance.

10. The output of an accounting cycle is the ………………

A. Post adjusted trial balance
B. Formal financial statement
C. Financial statement worksheet
D. Trial balance of the general ledger.

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