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Tutorial 2

This document outlines a tutorial on financial accounting frameworks for a Bachelor of Economics program. It includes 10 multiple choice and true/false questions covering topics like the qualitative characteristics of financial reporting, types of business entities, accounting concepts such as matching expenses with revenue, and which business transactions should be recorded in accounting books.

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88 views2 pages

Tutorial 2

This document outlines a tutorial on financial accounting frameworks for a Bachelor of Economics program. It includes 10 multiple choice and true/false questions covering topics like the qualitative characteristics of financial reporting, types of business entities, accounting concepts such as matching expenses with revenue, and which business transactions should be recorded in accounting books.

Uploaded by

吴国豪
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY AND MANAGEMENT


Bachelor of Economics (Hons) Global Economics

TUTORIAL 2
FINANCIAL ACCOUNTING FRAMEWORK 1

1. Discuss the qualitative characteristic of reporting.

2. Explain the three types of business entities by highlighting their main characteristics

3. Discuss types of companies

4. For each of the following independent situations, some concepts and assumptions
have been violated. State the concept or assumption that has been violated and explain
the correct procedure that should be used.

(a) Encik Ali Abu, the owner of AA Shop, included his family’s vacation trip to
Disneyland and Gold Coast as expenses of the business.

(b) Versatile Trading changes its inventories valuation method every year. The
accounts officer would choose the method that will report a higher net income.

(c) The record of the credit sales is done by referring to the receipt issued to the
customers (when customer pay the sales amount)

5. A business owned by one person is called a __________.


a. Corporation
b. Free enterprise
c. Partnership
d. Sole proprietorship

6. The accounting assumption which states that a business exists independently of its
owner’s personal holdings is known as __________.
a. Accounting period
b. Business entity
c. Going concern
d. Matching

7. Following the same accounting procedures in the same way in each accounting period
is an application of the accounting concept
a. Matching Expenses with Revenue.
b. Accounting Period Cycle.
c. Consistent Reporting.
d. Going Concern

8. Keeping the reports and financial records of a business separate from the personal
records of the partners is an application of the accounting concept
a. Going Concern.
b. Business Entity.
c. Historical Cost.
d. Objective Evidence.

9. Recording expenses in the fiscal period in which the expenses contribute to earning
revenue is an application of the accounting concept
a. Accounting Period Cycle.
b. Adequate Disclosure.
c. Matching Expenses with Revenue.
d. Historical Cost.

10. Identify the following information that should be recorded in the books of account:
Put “yes” if it should be recorded and “no” if it shouldn’t.

a. Health of managing director


b. Purchase of factory building RM1.5million
c. Office rent paid RM2000 a month
d. Goods worth RM200,000 given as charity
e. Delay in supply of raw materials

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