BKAL1013 Business Accounting

TUTORIAL 1
DUE DATE: 5th November 2020 (DURING LECTURE TIME)

1. The type of accounting that generates reports for the use of external parties, such as
creditors, investors and government agencies, is known as:

A. Financial accounting.
B. Auditing. 
C. Managerial accounting.
D. Cost accounting.

2. The branch of accounting that generates reports and information for the use of internal
management is known as:

A. Management accounting.
B. Tax accounting.
C. Auditing.
D. International accounting.

3. The accrual basis of accounting records revenues when they are:

A. Collected.
B. Contracted.
C. Earned.
D. Readily available for use.

4. Which one of the following is NOT an external user of accounting information?

A. Investor
B. Manager
C. Creditor
D. Customer

1
 BKAL1013 Business Accounting
5. Calculate Adam’s opening capital given the following assets and liabilities: Non-current
Assets RM60,000; Inventory RM10,000; Bank RM5,000; and Bank Loan for Non-
current Assets RM20,000.

A. RM63,000
B. RM55,000
C. RM37,000
D. RM103,000

6. Which of the following is NOT an asset?

A. Motor Vehicle
B. Loan to buy Equipment
C. Building
D. Computer

7. The idea that financial statements should be free from bias is part of which characteristic?

A. Comparability.
B. Understandability.
C. Reliability.
D. Relevance.

8. The business entity concept states that:

A. business entities must prepare financial statements according to accounting

standards.
B. accounting policies apply to all business entities in preference to accounting
standards.
C. financial statements should be prepared by all business entities.
D. an organisation and its owners are separate entities for accounting purposes.

9. Which of the followings is CORRECT?

A. Owner’s Equity = Liabilities + Assets

2
 BKAL1013 Business Accounting
B. Liabilities = Assets + Owner’s Equity
C. Assets = Liabilities + Owner’s Equity
D. Assets = Owner’s Equity

10. Which of the following is CORRECT about double entry system of accounting?

A. Every business transaction brings at least two financial changes in business.

B. Financial changes are recorded as debits or credits in two or more accounts.
C. Every debit entry has a corresponding credit entry.
D. All of the above

3
 BKAL1013 Business Accounting
PART B: ACCOUNTING EQUATION

With referring to the basic accounting equation: Assets = Liabilities + Owner’s Equity,
determine the effect of the following transactions to the equation.

Oct 1 Commenced business with cash RM200,000, land RM50,000, and equipment
RM35,000.
5 Purchased furniture of RM5,000 on account.
7 Purchased supplies for a month, RM500, cash.
10 Provided services to Hakimi RM1,700, on account.
11 Received cash, RM500, from services performed to Saadiah.
17 Received cash from Hakimi.
20 Paid creditor in full for furniture purchased on October 5.
23 Recorded cash collected from services revenue during October, RM8,500.
27 Withdrew cash for personal use, RM500.
29 Paid salaries, RM1,000 and electricity bill, RM1,500.

4
 BKAL1013 Business Accounting