BKAL1013 BUSINESS ACCOUNTING

SEM A141

TUTORIAL # 2
1.

The type of account with a normal credit balance is:

A.
B.
C.
D.

2.

net loss.
gross profit.
gross loss.
net profit.

A company sells goods on credit for RM30,000. Which of the following entries
correctly records the transaction?
A.
B.
C.
D.

6.

transaction in a journal.
the chart of accounts.
general ledger accounts and balances.
the totals from the journal pages.

The excess of revenue over the expenses is called:

A.
B.
C.
D.

5.

a debit to cash and a credit to accounts payable.

a debit to accounts receivable and a credit to cash.
a debit to cash and a credit to accounts receivable.
a debit to accounts payable and a credit to cash.

A trial balance is a listing of:

A.
B.
C.
D.

4.

an asset.
a drawing.
an expense.
a revenue.

The receipt of cash from customers in payment of their accounts would be recorded
by:
A.
B.
C.
D.

3.

DUE DATE: 9th October 2014

Debit cash and credit sales RM30,000

Credit inventories and debit accounts receivable RM30,000
Credit accounts payable and debit sales RM30,000
Debit accounts receivable and credit sales RM30,000

Paying cash to the suppliers on account would include:

A.
B.
C.
D.

a debit to accounts receivable and a credit to revenue.

a debit to cash and a credit to accounts receivable.
a debit to accounts payable and a credit to cash.
a debit to cash and a credit to capital.

BKAL1013 BUSINESS ACCOUNTING

SEM A141

7.

A company had a cash balance of RM30,000 on 1 August 2014. During August total
payments were RM384,000 and total receipts were RM357,000. What is the cash
book balance at 31 August 2014?
A.
B.
C.
D.

8.

The economic resources owned; expected to benefit the business in future is:
A.
B.
C.
D.

9.

an increase in both total assets and total equities.

a decrease in both total assets and total equities.
an increase in total assets and a decrease in total equities.
no effect on total assets.

Which of the following statements is FALSE?

A.
B.

The left side of a T-account is the credit side.

Entries that increase asset accounts, or decrease liability accounts are posted as
debits.
The left side of a T-account is the debit side.
Entries that decrease asset accounts and increase liability accounts are posted
as credits.

C.
D.
11.

The recording of debit and credit parts of a transaction is:

A.
B.
C.
D.

12.

liabilities.
owners equity.
assets.
potential investors.

The owner withdraws cash from the business for personal use leads to:
A.
B.
C.
D.

10.

RM 1,800
RM 3,000
RM 4,500
RM 6,000

checking equality.
double-entry accounting.
single-entry accounting.
transaction analysis.

When cash is paid in advance for insurance, ____.

A.
B.
C.
D.

the Prepaid Insurance account is decreased

the Prepaid Insurance account is credited
the Prepaid Insurance account is increased
none of the above

BKAL1013 BUSINESS ACCOUNTING

SEM A141

13.

The account debited when cash is paid for supplies is ____.

A.
B.
C.
D.

14.

Supplies
Cash
Supplies Expense
none of the above

Which of the following transactions would increase both assets and liabilities?
A.
B.
C.
D.

Purchasing car by issuing a note payable.

Purchasing office supplies for cash.
Performing a service and receiving the cash immediately.
Pay money to the bank.

Use the following information for questions 15:

Cash in Bank
Accounts Receivable
Office Supplies
Office Furniture
Office Equipment
Accounts Payable
15.

RM62,000
RM10,000
RM18,000
RM3,000
RM2,000

RM8,000
RM15,000
RM20,000
RM25,000

A business makes a payment of RM9,600 on a Note Payable, consisting of a

RM1,600 interest payment and a RM8,000 principal payment. Which of the following
journal entries would be recorded?
A.
B.
C.
D.

17.

Ahmed Capital
Ahmed, Drawing
Revenue
Salaries Expense
Miscellaneous Expense

What is the correct balance for the Accounts Receivable?

A.
B.
C.
D.

16.

RM32,000
RM???
RM3,000
RM12,000
RM18,000
RM20,000

Cash is credited for RM8,000; Interest Expense is credited for RM1,600; and
Notes Payable is debited for RM9,600
Notes Payable is credited for RM8,000; Cash is credited for RM1,600; and
Interest Expense is debited for RM9,600
Cash is credited for RM9,600; Notes Payable is debited for RM8,000; and
Interest Expense is debited for RM1,600
Notes Payable is credited for RM9,600; Cash is debited for RM8,000; and
Interest Expense is debited for RM1,600

A business purchased an equipment by paying cash of RM36,000 and issuing a Note

Payable of RM54,000. Which of the following journal entries would be recorded?

BKAL1013 BUSINESS ACCOUNTING

SEM A141

A.
B.
C.
D.

18.

Cash is credited for RM36,000; Equipment is credited for RM90,000; and

Notes Payable is debited for RM54,000
Cash is credited for RM36,000; Equipment is debited for RM90,000; and
Notes Payable is credited for RM54,000
Cash is debited for RM36,000; Equipment is debited for RM54,000; and
Notes Payable is credited for RM90,000
Cash is credited for RM36,000; Equipment is credited for RM54,000; and
Notes Payable is debited for RM18,000

How does a cash withdrawal by the owner affect the accounting equation?
A.
B.
C.
D.

liabilities increase; owners equity decrease

assets increase; owners equity increase
assets decrease; owners equity decrease
assets increase; liabilities increase

Questions 19 to 21 are based on the following transactions for the month of October
2013 of Costa Enterprise.
i)

The owner started the business with a contribution of RM23,500 cash.

ii)

Purchased office furniture for RM11,500, paid RM2,500 down payment and
put the balance on a Note Payable.

iii)

Paid a utility bill for RM980 cash.

iv)

Paid RM2,000 cash for October rent.

v)

The business had sales of RM15,000 in October. Of these sales, 60% were
cash sales, and the balance was credit sales.

19.

vi)

Paid RM9,700 cash for the purchase of a second hand car.

vii)

Collected RM2,000 from credit sales.

How much is the net income for October 2013?

A.
B.
C.
D.

20.

RM5,300
RM6,020
RM9,000
RM12,020

What is the amount of total liabilities at the end of October 2013?

A.
B.

RM980
RM2,330

BKAL1013 BUSINESS ACCOUNTING

SEM A141

C.
D.
21.

How much is the balance in Accounts Receivable?

A.
B.
C.
D.

22.

RM4,800
RM9,000

RM4,000
RM6,000
RM7,000
RM9,000

The following entries were made by the accountant of Ultrawoman Sdn Bhd during
its first month of operation:
i) Ms Caprinova, the owner, deposited RM4,500 cash in the business.
ii) Ultrawoman Sdn Bhd paid the first month's rent of RM600 in cash.
iii) Ultrawoman Sdn Bhd purchased equipment by signing a Note Payable of
RM16,500.
iv) Cash sales for the month were RM6,750.
v) Ultrawoman Sdn Bhd purchased supplies for RM2,100 cash.
After posting these entries to the general ledger, how much are total assets?
A.
B.
C.
D.

23.

An office equipment is purchased for cash. Which of the following is TRUE?

A.
B.
C.
D.

24.

There is an increase in total assets

There is a decrease in both total assets and total liabilities
There is an increase in total assets and a decrease in total liabilities
There is no effect on total assets

An electricity bill is received for expenses incurred. It will be paid in the following
accounting period. The following is TRUE as a result of the receipt of the bill:
A.
B.
C.
D.

25.

RM9,150
RM10,650
RM25,050
RM27,150

Net income will increase

Owner's equity will decrease
Total liabilities will decrease
There will be no effect on total liabilities

Which of the following statements correctly describes a Trial Balance?

A.
B.
C.
D.

A Trial Balance is the first step in the accounting cycle

A Trial Balance is also known as a Statement of Financial Position
A Trial Balance is a list of all accounts with their balances
A Trial Balance is also known as the chart of accounts

BKAL1013 BUSINESS ACCOUNTING

SEM A141

26.

If a company uses cash-basis accounting, when is revenue recorded?

A.
B.
C.
D.

27.

Which of the following is TRUE?

A.
B.
C.
D.

28.

Accrual accounting is required by Generally Accepted Accounting Principles

Accrual accounting records expenses when incurred. Cash-basis accounting
records expenses when cash is paid
Accrual accounting records revenue when services are rendered. Cash-basis
accounting records revenue when cash is received
All of the above are true

Which of the following situations would result in an increase in income under the
accrual based accounting, but would not result in an increase in income under the
cash-basis accounting?
A.
B.
C.
D.

29.

When services are rendered, even though cash may be received at a later date
When cash is received, prior to the services being rendered
When cash is received, at a time after the services were rendered
When cash is received, either prior to the services being rendered or at a time
after the services were rendered

Purchase of supplies for cash

Rendering of services on account
Use of supplies purchased earlier
Receipt of cash for services that were rendered earlier on account

If the estimated amount of depreciation on machine for a period is RM3,000, the

adjusting entry to record depreciation would be:
A.
B.
C.
D.

debit Depreciation Expense RM3,000; credit Machine RM3,000

debit Machine RM3,000; credit Depreciation Expense RM3,000
debit Depreciation Expense RM3,000; credit Accumulated Depreciation
RM3,000
debit Accumulated Depreciation RM3,000; credit Depreciation Expense
RM3,000

BKAL1013 BUSINESS ACCOUNTING

SEM A141

DUE DATE: 9th October 2014

TUTORIAL # 2

MATRIC NO: _____________

NAME:

GROUP: _____

______________________________________

ANSWER:

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16.
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POSITION NO: ______