FAR 100

TUTORIALS 1. Mark the true statement with (T) and false statements with (F). TRUE 1. Accounting is an information system that identifies, records and analy e the economic e!ents of an organisation to interested users ". The #ur#ose of accounting is to #ro!ide the useful information in effecti!e, rele!ant, and relia$le way for a wide !ariety of decision. %. &wners of $usiness firms are the only #eo#le who need the accounting information. '. Management of $usiness enter#rise is ma(or e)ternal user of accounting information. *. +ookkee#ing and accounting are one end the same $ecause the $ookkee#ing function includes the accounting #rocess. ,. -ri!ate accountants are accountants who are em#loyees of $usiness enter#rise. .. Accounting communicates financial information a$out a $usiness enter#rise to $oth internal and e)ternal users. /. All accounting entries must $e su##orted $y the source document ". Aina 0om#any #erforms the following accounting tasks during the year. 1ndicate the tasks $elow as $eing either identifies, records or communicating. 222222 3ummari ing economic e!ents. 222222 3electing economic acti!ities rele!ant to the com#any. 222222 Re#orting information in a standard format. 222222 -re#aring accounting re#orts. 222222 Measuring e!ents in dollars and cents. 222222 0lassifying economic e!ents. 222222 Analy ing and inter#reting information. %. Accounting is 4an information system that identifies, records, and communicates the economic e!ents of an organi ation to interested users.5 a. 6)#lain $riefly and gi!e TWO (2) of the e)ternal user of accounting information $. 6)#lain $riefly and gi!e TWO (2) of the internal user of accounting information c. 7ifferentiate $etween $ookkee#ing and accounting. '. 7ifferentiate $etween sole #ro#rietorshi#, #artnershi# and com#any in term of its ownershi#, ca#ital and $ooks and accounts. FALSE

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FAR 100

*. The following are users of financial statements. 222222 0ustomers 222222 3ecurities and 6)change 0ommission 222222 1nternal Re!enue 3er!ice 222222 1n!estors 222222 9a$or unions 222222 3u##liers 222222 Factory manager 222222:uman resource worker 222222 ;ice<#resident of Finance Re uired! 1dentify the users as $eing either e"terna# users or interna# users.

,. 1ndicate the assum#tion, #rinci#les or constraint that descri$es $y each situation $elow= i. >atasha $uys a dress for RM 1,*00 on 11 ?anuary "00/. 3he #ays the store on 1' Fe$ruary "00/. The store records sale on 11 ?anuary "00/ not on 1' Fe$ruary "00/ when cash is recei!ed. 222222222222222222222222222222222222222222222222222222222222222222 ii. A $ill for re#airs of 3amad@s #ri!ate car was recorded se#arately from his $usiness financial information. 222222222222222222222222222222222222222222222222222222222222222222 iii. +usiness #remises is shown on the $alance sheet as RM *0,000, its original cost "0 years ago, although its current !alue RM *00,000. 222222222222222222222222222222222222222222222222222222222222222222 i!. 6ach transaction descri$ed $y a $usiness document that #ro!es that the transaction did take #lace. 222222222222222222222222222222222222222222222222222222222222222222

$u#ti%#e &'oice (uestions 1. The list $elow is re#resenting the internal users of accounting information, E)&E*T=

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FAR 100

A. 3u#er!isors +. &wner@s 0. Managers 7. +usiness contact grou# ". Ahat is the relationshi# $etween $ookkee#ing and accountingB A. +ookkee#ing only records the economic e!ent and it is #art of accounting. +. +ookkee#ing is also called accounting 0. +ookkee#ing will communicates the accounting to interested users. 7. +ookkee#ing does not ha!e any relationshi# with accounting

%.

The following descri$es the #rocess of identifying the economic e!ents of an organi ation= A. +. 0. 7. Cee#ing a chronological diary of #articular e!ents in an orderly and systematic manner. 3electing the economic acti!ities rele!ant to a #articular organi ation . -re#aring accounting re#orts, including financial statements. Duantifying e!ents in dollars and cents.

'.

9imited lia$ility is +OT en(oyed $y the owner(s) of a A. 0or#oration. +. -artnershi#. 0. -ro#rietorshi#. 7. +oth + and 0 a$o!e.

*.

Ahich of the following is the ste% of accounting #rocessB A. 1dentification E Recording E 0ommunication E ;erification +. 1dentification E -lanning E Recording < 0ommunication 0. 1dentification E Recording E0ommunication 7. 1dentification E Recording E;erification

,.

For accounting #ur#oses, the #ro#rietor of an enter#rise has always considered to $e se#arate and distinct from the $usiness which he controls or owns. 1n accounting term this is referred to as A. :istorical 0ost -rinci#le

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FAR 100

+. 3e#arate +usiness 6ntity 0. Time #eriod8accounting #eriod 7. Matching -rinci#le .. The #rocess of communicates in Accounting #rocess $est descri$e as A. 0lassify and summari e and classifying data as to $e useful to the $usiness +. To tell their result to the owner of the $usiness or to others allowed to recei!e accounting information 0. To record and $usiness acti!ities 7. To hel# the owner of the $usiness to #lan for the future

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Ahich of the following statement a$out user of information is I+&ORRE&TB A. Fo!ernment are considered as internal users +. 3hareholders are consider as internal users 0. 1n!estor are consider as e)ternal users 7. 0reditors are consider as e)ternal user

G.

Business events include $oth internal and e)ternal acti!ities. The following consider Business events e)ce#tB A. +ought furniture and fitting on cheHue worth $y Ali 3dn +hd +. Transfer of the land title from owner of the land to the sole #ro#rietor 0. -ayment of water $ill for Ali@s house 7. Recei!ed interest from Fi)ed de#osit

10.

Ahich of the following is I+&ORRE&T a$out -artnershi#B A. Inlimited 9ia$ility +. Register under +usiness act 1G*. 0. >o legal o$ligation to kee# the $ooks and #re#are the account 7. &wnershi# $y " E *0 #erson

11.

Accounting is only concerned with the recording of facts that can $e e)#ressed in monetary terms, as o##osed to using #hysical or time units of measurement. A. Foing 0oncern +. Monetary Init Assum#tion 0. Time #eriod8accounting #eriod

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FAR 100

7. Matching -rinci#le 1". 0ommunication of economic e!ents is the #art of the accounting #rocess that in!ol!es A. +. 0. 7. 1%. 1dentifying economic e!ents Duantifying transactions into dollars and cents -re#aring accounting re#orts Recording and classifying information

The accounting #rocess in!ol!es all of the following E)&E*T A. +. 0. 7. 1dentifying economic transactions that are rele!ant to the $usiness 0ommunicating financial information to users $y #re#aring financial re#orts. Recording non<Huantifia$le economic e!ents. Analy ing and inter#reting financial re#ort.

1'.

Ahich of the following would >&T $e considered an internal user of accounting data for the JKL 0om#anyB A. +. 0. 7. -resident of the com#any -roduction manager Merchandise in!entory clerk -resident of the em#loyee@s@ la$or union

1*.

Amar 0om#any owns land which cost is RM 100, 000. 1f a MHuick saleM of the land was necessary to generate cash, the com#any feels it would recei!e only RM /0,000. The com#any continues to re#ort the asset on the $alance sheet at RM 100, 000. This is (ustified under which of the following conce#tsB A. :istorical<cost #rinci#le +. Matching #rinci#le 0. Re!enue recognition #rinci#le 7. Full disclosure #rinci#le

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