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UNIVERSITI TEKNOLOGI MARA

TEST 1

COURSE : INTRODUCTION TO FINANCIAL ACCOUNTING /

INTRODUCTION FINANCIAL ACCOUNTING AND
REPORTING
COURSE CODE : ACC117/106
TEST : 20 MAY 2022 (FRIDAY)
TIME : 1 HOURS 30 MINUTES (2.30 PM – 4.00 PM)

THIS TEST CONSISTS OF:

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

ii. PART B - MULTIPLE CHOICE QUESTIONS (10 MARKS)
iii. PART C - SHORT STRUCTURE QUESTION (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 POSITION IN ATTENDANCE LIST_FULL NAME
(IC)_STUDENT’S ID_GROUP

E.g. 15_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 6 pages including cover page
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PART A
This part consists of 10 true or false questions. Write the question number with TRUE
or FALSE in your answer sheet/booklet.

1. Accounting involved processes to classify, record and summarize the business economic
and non-economic events, and interpreting the results to their interested parties for making
decision and performance evaluation processes.

2. The income tax department is one of the business external users which use the financial
information to determine the business ability in repaying the amount of debts on time.

3. Public company is one of the business organizations which has the word “Sendirian
Berhad” at the end of its name.

4. Jamaliah is the owner and accountant of Jamaliah Trading. If Jamaliah Trading unable to
cover the debts, the payables have no right against Jamaliah personal properties.

5. Financial information is considered useful if it has fundamental qualitative characteristics

and considered relevant if it can make a difference in decision making process.

6. Predictive value of financial information will be useful if it can predict about the eventual
outcomes of past or current events.

7. Financial information should be comparable, verifiable, understandable and available in

time so that the internal users of business organization can plan, organise and control their
organization effectively.

8. Historical concern concept allows assets to be written off proportionately over its useful
life.

9. Profit is the only factor will increase the business capital.

10. Under double entry principles, each of the business economic event will affect at least two
accounting items, thus it will help the business to reduce the mistake.

(Total: 10 marks)
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PART B
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. Below are the objectives of accounting except __________.

A. To correctly record the transactions in the accounting books.

B. To ascertain the financial situation and the outcome.
C. Helps to record the expenses accurately and thus helps to reduce the cost.
D. Helps to determine the owner.
(1 mark)

2. Bookkeeping is a process of:

A. classifying, recording and interpreting the past economic events of the business
organization.
B. classifying, recording and interpreting the past and future economic events of the
business organization.
C. classifying, recording and summarizing the past economic events of the business
organization.
D. classifying, recording and summarizing the past and future economic events of
the business organization.
(1 mark)

3. The following statements are incorrect about the users of accounting information
EXCEPT:

A. existing management and board of directors are considered as internal users.

B. existing employees and government are considered as internal users.
C. existing and potential employees are considered as internal users.
D. existing supplier and potential investors are considered as internal users.
(1 mark)

4. Which of the following business entities have a limited liability characteristic?

i. Tuah Badan Trading

ii. Maimai & Partners Enterprise
iii. Kumans Sdn Bhd
iv. Muafakat Makmur Bhd

A. i and ii
B. i and iii
C. iii and iv
D. ii and iv
(1 mark)
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5. Which of the following explains the concept of Going Concern?

A. The accounting rule that requires profit to be realized at the time when goods or
services are passed to the customer.
B. The accounting rule that the life of a business is divisible into time periods of equal
length.
C. The accounting assumption is that the business will continue to operate in the
foreseeable future.
D. The accounting rule requires a persistent application of a selected accounting
method and procedure period after period.
(1 mark)

6. The following are the qualitative characteristics of financial accounting information

EXCEPT:

A. Materiality
B. Liquidity
C. Neutrality
D. Monetary
(1 mark)

7. The __________ concept states that the business and the owner of the business are two
separate entities. Therefore, we only record the transactions that affect the business and
not the owner of the business except when the owner withdraws assets for personal use
and introduces capital to start the business.

A. Materiality
B. Economic entity
C. Historical cost concepts
D. Comparability
(1 mark)

8. MHG Gemilang is a business dealing with designing and renovating houses in Negeri
Sembilan. Encik Helmi as the accountant of the business had record all the transactions
either based on cash and credit basis properly, which is in line with __________.

A. Cost concept
B. Accrual based concept
C. Monetary concept
D. Consistency concept
(1 mark)

9. The following is the correct expanded accounting equation:

A. Assets + Liabilities= Owner’s Equity + Expenses+ Revenues

B. Assets + Revenues +Liabilities= Owner’s Equity + Expenses
C. Assets + Expenses = Owner’s Equity +Liabilities + Revenues
D. Assets + Revenues = Owner’s Equity + Expenses + Liabilities

(1 mark)
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10. In double entry system, a credit is used to record __________.

A. increase in revenues and expenses

B. increase in assets and expenses
C. increase in owner’s equity and assets
D. increase in liabilities and owner’s equity
(1 mark)
(Total: 10 marks)

PART C: SHORT STRUCTURE QUESTION

Saloma is a young entrepreneur started textiles business named Pirmadona Trading. The
business deals with buying and selling varieties of fabric to customers in Seremban area. The
following are the business transactions for the month of April 2022.

April 2022 Transaction

Saloma started business with RM120,000 into business’ bank

1 current account (Bank Islam Malaysia Berhad) and brought-in
RM5,000 computer to the business.
Purchased office furniture and fittings RM30,000 from Saliwati
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Enterprise on credit.
Received invoice from Abu Bakar Enterprise worth RM10,000 for
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purchase of fabrics.
5 Made cash sales of RM2,500.

7 Sold fabrics RM23,500 to Terpesona Sdn Bhd on credit.

10 Returned defective fabrics to Abu Bakar Enterprise RM500.

Issued cheque for purchase RM3,000 fabrics (silk) from Jakello
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Enterprise.
16 Sent credit note to Terpesona Sdn Bhd RM200 for goods returned.

17 Cash purchases from Maduri RM300.

20 Saloma took fabrics RM550 and cash RM1,230 for personal used.

23 Received profit (hibah) from Bank Islam Malaysia Sdn Bhd RM50.

25 Issued cheque to Abu Bakar Enterprise for full settlement.

28 Received cheque from Terpesona Sdn Bhd for full settlement.

Paid RM5,000 for employees’ salaries. Payment made through
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eletronic fund transfer to the employees’ bank accounts.
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Required:

a. Identify the effects (increase or decrease) of assets, liabilities, owner's equity,

revenues or expenses for the transactions dated from 1 April 2022 to 30 April 2022.
(15 marks)

b. Show the journal entry (debit and credit) of the above transactions (without figures).
(15 marks)
(Total: 30 marks)

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

Example: April 28 - Paid RM200 for utilities expenses by cash.

Date (a) Effects (b) Journal Entry

Example Increase Decrease Debit Credit

April
28
Expenses Asset Utility Expenses Cash

END OF QUESTION