NUR AIEN NATASYA BINTI AZLIE (PBB23008)

Instruction:

This paper consist of TWENTY (20) multiple choice questions. You should read each question and
then decide which choice is the best. Write down your answers on the following MCQ answer sheet
template.

MCQ ANSWER SHEET

PART 1 (REFER TO ATTACHED PDF DOCUMENT FOR QUESTIONS)

Q1. C

Q2. D

Q3. B

Q4. D

Q5. A

Q6. C

Q7. C

Q8. A

Q9. C

Q10. A

PART 2 (REFER TO ATTACHED QUESTIONS ON PAGE 2-4 OF THIS PAPER)

Q11. D

Q12. B

Q13. D

Q14. A

Q15. B

Q16. D

Q17. C

Q18. D

Q19. B

Q20. A
QUESTIONS FOR PART 2

11. Accounts that normally have debit balances are:

A.Assets, expenses and revenues

B.Assets, expenses and owner’s equity

C.Assets, liabilities and drawings

D.Assets, drawings and expenses

12. Which of the following statements is true?

A.Debit means increase, credit means decrease

B.The left side of an account is debit

C.Posting is the process of preparing trial balance

D.Double entry means that the each transactions is recorded twice

13. A ledger is:

A.a book of original entry

B.an optional step in recording all the transactions

C.proof that all transactions have been recorded

D.a group of accounts

14. Posting means

A.The process of transferring journal entries to the accounts

B.The entering of transaction data to financial statements

C.A book of original entry

D.A list of accounts at a particular date

15. Which of the following statements about a trial balance is false?

A.A list of accounts with their balances at a given time

B.It provides a chronological record of transactions

C.It helps to locate errors in recording the transactions

D.It does not prove all transactions have been recorded

16. Which of the following is shown under the wrong classification?

A.Assets, cash at bank

B.Liabilities, Loan

C.Expenses, Wages and salary

D.Owner’s Equity, Accounts Payables

17. If total liabilities increased by RM4,000, then

A.assets must have decreased by RM4,000.

B.owner's equity must have increased by RM4,000.

C.assets must have increased by RM4,000, or owner's equity must have decreased by RM4,000.

D.assets and owner's equity each increased by RM2,000.

18. The accounting process involves all of the following except

A.identifying economic transactions that are relevant to the business.

B.communicating financial information to users by preparing financial reports.

C.recording nonquantifiable economic events.

D.analysing and interpreting financial reports

19. Joe has prepared the following journal entry:

Debit Cash RM850

Credit Sue Hong RM850

Which of the following is the correct narrative for the journal entry?

A.Cash sale to Sue Hong

B.Cash purchase from Sue Hong

C.Cash payment to Sue Hong

D.Cash receipt from Sue Hong.

20. Revenues would not result from

A.sales of goods.
B.initial investment of cash by owner.

C.performance of services.

D.rental of property.