COLLEGE OF BUSINESS MANAGEMENT AND ACCOUNTING

ABAF014 BUSINESS ACCOUNTING 1

 

TOPIC 2 ACCOUNTING PRINCIPLES

TUTORIAL QUESTIONS

MULTIPLE CHOICE QUESTIONS

INSTRUCTION: CHOOSE THE BEST POSSIBLE ANSWERS.

The accountancy profession in Malaysia is governed by the _______ through the powers conferred by the Accountants Act 1967.

According to accrual concept of accounting, financial or business transaction is recorded __________.

An organization is assumed to be in operation for an indefinite period of time and assets will continue to be used to generate revenue to the business. What is the relevant concept of accounting in the statement?

Charging off a wastepaper basket with an estimated life of ten years as an expense of the period when purchased is an example of the application of the __________.

__________ implies that the current market value or an estimation of a market price be used as the present value of expected cash flows.

An accountant should never anticipate profits but should make provision for all losses whether actual or anticipated. This concept refers to ___________.

Which accounting concept or principle states that the transactions of a business must be recorded separately from those of its owners or other businesses?

Which accounting principle/concept allows accountants to ignore other accounting principle/concept if the amount in question is immaterial?

Which financial information exhibits the characteristic of consistency when _________.

According to___________, the efficiency of the top management of the business must not be clearly recorded in the books of accounts.

Which concept requires the company's financial statements to have footnotes containing information that is important to users of the financial statements?

Any transactions that occur are recorded into two different accounts with the same amount in the ledger book.

All transactions are recorded in terms of value of money.

To measure the performance of a business, business life should be divided into specific periods of time.

The premises are recorded in the balance sheet at its cost price.

The financial statements of MetaL Company contained some footnotes important for users for decision making.

Insurance premiums for the owner’s house should be excluded from the expense of the business.

______ is established to oversee MASB’s performance and financial arrangements.

________ was established as an independent authority to issue accounting standards for the purpose of financial reporting in Malaysia.