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7. Which of the following is a current asset? A. Insurance paid in advance Accrued salary B. C. Prepaid commission revenue Accrued Interest expenses D.

7. Which of the following is a current asset? A. Insurance paid in advance Accrued salary B. C. Prepaid commission revenue Accrued Interest expenses D.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PART AWhich of the following is a current asset? A. Insurance paid in advance B. Accrued salary C. Prepald commission revenue D. Accrued Interest expenses A machine was bought for RM150,000 on 1 January 2021. The business decided to use a polcy of a 20% straight-Ine method for depreciation. Calculate the carrying value for machinery as at 31 December 2022. A. RM30,000 B. RM60,000 C. RM 90,000 D. RM120,000 A decrease in allowance for doubtrul debts will result in A. a decrease in net proft B an increase in revenues C. an increase in expenses D. an increase in llabilities On 1 June 2022, one of the credit customers, Danlel was no longer able to repay his debts worth RM4,500 and the business decided to write off the amount. The adjustment to record this transaction for the year ended 31 December 2022 will require a A. credit to Allowance for doubtful debts account B. debit to Bad debts account C. deblt to Allowance for doubtiul debts account D. credit to Account recelvable This part consists of 10 multiple-choice questions. Choose the most sultable answers. A deblt note sent to a seler for damaged goods is to be recorded in A. return outwards journal B. sales journal C. purchases journal D. return Inwards journal A purchase of a motor van on credit is to be recorded in A. general Journal B. cash payments journal C. purchases journal D. cash receipts Journal Which of the following is correct regarding the calculation of the cost of goods soid? A. Opening Inventory + net purchases - carriage inwards - closing Inventory. B. Opening inventory - net purchases + carriage inwards - closing Inventory. C. Opening inventory + net purchases + carriage Inwards - closing Inventory. D. Opening inventory + net purchases + carriage inwards + closing inventory. Al of the following statements about an accrued revenue is not true? A. Goods or services have been provided to a customer, but no payment has been received from the customer. B. It is treated as a current asset. C. It is treated as a current llability. D. It is recognised as an earned revenue. Which of the following is true regarding a prepald expense? A. must be recorded as an expense in the accounting period in which the expense is pald. B. refers to an expenditure that has incurred during the current period but not yet pald. C. exists when payment is received in advance from customers for goods or services that have not yet been delivered. D. must be reported as an expense in the following accounting period when it is incurred. Which of the following items is not a capital expenditure? A. Purchase of delivery van for warehouse B. Warehouse renovation costs C. Repair costs for machine D. Machine Installation costs
Transcribed Image Text:PART AWhich of the following is a current asset? A. Insurance paid in advance B. Accrued salary C. Prepald commission revenue D. Accrued Interest expenses A machine was bought for RM150,000 on 1 January 2021. The business decided to use a polcy of a 20% straight-Ine method for depreciation. Calculate the carrying value for machinery as at 31 December 2022. A. RM30,000 B. RM60,000 C. RM 90,000 D. RM120,000 A decrease in allowance for doubtrul debts will result in A. a decrease in net proft B an increase in revenues C. an increase in expenses D. an increase in llabilities On 1 June 2022, one of the credit customers, Danlel was no longer able to repay his debts worth RM4,500 and the business decided to write off the amount. The adjustment to record this transaction for the year ended 31 December 2022 will require a A. credit to Allowance for doubtful debts account B. debit to Bad debts account C. deblt to Allowance for doubtiul debts account D. credit to Account recelvable This part consists of 10 multiple-choice questions. Choose the most sultable answers. A deblt note sent to a seler for damaged goods is to be recorded in A. return outwards journal B. sales journal C. purchases journal D. return Inwards journal A purchase of a motor van on credit is to be recorded in A. general Journal B. cash payments journal C. purchases journal D. cash receipts Journal Which of the following is correct regarding the calculation of the cost of goods soid? A. Opening Inventory + net purchases - carriage inwards - closing Inventory. B. Opening inventory - net purchases + carriage inwards - closing Inventory. C. Opening inventory + net purchases + carriage Inwards - closing Inventory. D. Opening inventory + net purchases + carriage inwards + closing inventory. Al of the following statements about an accrued revenue is not true? A. Goods or services have been provided to a customer, but no payment has been received from the customer. B. It is treated as a current asset. C. It is treated as a current llability. D. It is recognised as an earned revenue. Which of the following is true regarding a prepald expense? A. must be recorded as an expense in the accounting period in which the expense is pald. B. refers to an expenditure that has incurred during the current period but not yet pald. C. exists when payment is received in advance from customers for goods or services that have not yet been delivered. D. must be reported as an expense in the following accounting period when it is incurred. Which of the following items is not a capital expenditure? A. Purchase of delivery van for warehouse B. Warehouse renovation costs C. Repair costs for machine D. Machine Installation costs
7. Which of the following is a current asset? A. Insurance paid in advance B. Accrued salary C. Prepaid commission revenue D. Accrued Interest expenses 8. A machine was bought for RM150,000 on 1 January 2021. The business decided to use a policy of a 20% straight-line method for depreciation. Calculate the carrying value for machinery as at 31 December 2022. A. RM30,000 B. RM60,000 C. RM90,000 D. RM120,000 9. A decrease in allowance for doubtful debts will result in A. a decrease in net profit B. an increase in revenues C. D. an increase in expenses an Increase in Ilabilities 10. On 1 June 2022, one of the credit customers, Daniel was no longer able to repay his debts worth RM4,500 and the business decided to write off the amount. The adjustment to record this transaction for the year ended 31 December 2022 will require a A. credit to Allowance for doubtful debts account debit to Bad debts account B. C. debit to Allowance for doubtful debts account D. credit to Account receivable
Transcribed Image Text:7. Which of the following is a current asset? A. Insurance paid in advance B. Accrued salary C. Prepaid commission revenue D. Accrued Interest expenses 8. A machine was bought for RM150,000 on 1 January 2021. The business decided to use a policy of a 20% straight-line method for depreciation. Calculate the carrying value for machinery as at 31 December 2022. A. RM30,000 B. RM60,000 C. RM90,000 D. RM120,000 9. A decrease in allowance for doubtful debts will result in A. a decrease in net profit B. an increase in revenues C. D. an increase in expenses an Increase in Ilabilities 10. On 1 June 2022, one of the credit customers, Daniel was no longer able to repay his debts worth RM4,500 and the business decided to write off the amount. The adjustment to record this transaction for the year ended 31 December 2022 will require a A. credit to Allowance for doubtful debts account debit to Bad debts account B. C. debit to Allowance for doubtful debts account D. credit to Account receivable
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