(1a) Which one of the following is an example of an internal stakeholder? A A shareholder
B Investment analyst / consultant
(1b) The original role of the accounting function was which one of the following? AProviding management information
BRecording financial information
C Maintaining financial control
D Managing funds efficiently
(1c) The major purpose of the Malaysian Accounting Standards Board (MASB) is to ensure consistency in ___________. Which two words complete this sentence? A Financial control
B Corporate reporting
C External auditing
(1d) What is the primary responsibility of the external auditor? A To verify all the financial transactions and supporting documentation of the client B To ensure that the client’s financial statements are reasonably accurate and free from bias C To report all financial irregularities to the shareholders of the client D To ensure that all the client’s financial statements are prepared and submitted to the relevant authorities on time (1e) To whom is the internal auditor primarily accountable? A The audit committee of the company
B The company as a separate entity
C The shareholders of the company
D The employees of the company
(2) Identify any four user groups of financial statements and explain what information that is of interest to them. (3) Your colleague, senior manager of Sales & Marketing, is confused with the amount of information available in financial reports. In your course of enlightening him, you stressed the importance of Malaysian Accounting Standards (MASB) / Financial Reporting Standards (FRS) & he asked you what purpose these serve. Required:
Briefly state the basic purpose of MASB / FRS.
(4) Briefly explain the business entity concept & its impact on the recording of transactions. (5) Explain briefly:
(a) What is a balance sheet?
(b) What is an income statement?
(2) Top of Form
(1a) “The business entity concept requires a business to be treated as being separate from its owners” Is this statement true or false?
(1b) Which of the following statements are correct?
(1) Materiality means that only items having a physical existence may be recognised as assets. (2) The substance over form convention means that the legal form of a transaction must always be shown in financial statements even if this differs from the commercial effect. (3) The money measurement concept is that only items capable of being measured in monetary terms can be recognized in financial statements. A2 only
B 1, 2 and 3
D 3 only
(1c) What is the main purpose of a balance sheet?
ITo report assets, liabilities at a particular date
II To report capital (owner ship equity) at a particular date III To report on valuation & information about business activities at a over a specific period of time. IV To report on the growth in value of business at a particular date AI only
BI & II only
CIII & IV only
(1d) What accounting concept / principle describe the following statement? “All business transactions shall be expressed in common money terms to facilitate comparison & evaluation purposes”. AMatching
DSubstance over form
(1e) Which of the following statements explain the consistency concept? A$1,200 was taken up in accounting records as purchase of 100 units of merchandise at $12 per unit. BStocks that have been taken from business for own use by a sole proprietor is known as drawings. CDepreciation rate of 15% per annum has been decided upon by the management to be applied on all company’s owned motor vehicles. DDiscount allowed & commission received will be taken up in the relevant financial statement in order to derive the profit or loss for the business. (1f) “The purchase of an air filtration & purifier equipment valued at $5,000. ABC Sdn Bhd treated it as an expense item where as for...
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