Reference no: EM132712890

Problem 1: Ahmad bought the machinery amounted RM120,000. With useful life of 10 years. Calculate how much the depreciation amount per month.

a) RM12,000

b) RM 1,200

c) RM 1,000

d) RM10,000

Problem 2: According to accrual concept of accounting, financial or business transaction is recorded

a) when cash is received or paid

b) when transaction occurs

c) when profit is computed

d) when balance sheet is prepared

Problem 3: The John Marketing Company provides advertising services to an investment company in year 2017 but receives advertising fee in year 2018. The John Marketing Company recognizes this revenue in year 2017. This action of John Marketing Company is justified by

a) Business entity concept

b) Revenue recognition principle

c) Economic entity concept

d) Going concern concept

Problem 4: A company is a going concern if

a) Its balance sheet shows a strong financial position

b) Its income statement for the current year shows huge profit

c) There is no evidence that it will or will have to cease operations within foreseeable future.

d) It is a public limited company

Problem 5: Which accounting concept or principle states that the transactions of a business must be recorded separately from those of its owners or other businesses?

a) Materiality concept of accounting

b) Time period concept of accounting

c) Matching principle of accounting

d) Economic entity concept of accounting