UKAL1014 A172 TUTORIAL 2

PART A: 20 MULTIPLE CHOICE QUESTIONS

(TOPIC 4: COMPLETING THE ACCOUNTING CYCLE)

1. An account that still has balance after closing entries have been journalized and posted is:

A. Service Revenue
B. Advertising expense
C. Prepaid Insurance
D. Depreciation expense

Exp: Semua akaun yg ada dalam Income statement atau ada income summary account kena tutup eg:
(Revenue, Fees Earned, Expenses). Jawapan C betul sebab akaun prepaid insurans akan ada balance if it
is accrued maksudnya belum guna lagi, and sebab dia asset, asset mana ada dlm income statement

2. Which types of accounts will appear in the post-closing trial balance?

A. Accrued expenses
B. Unearned revenue
C. Accumulated depreciation
D. All of the above

Exp: Dalam accounting cycle akan ada unadjusted trial balance, adjusted trial balance dan post closing
trial balance. Unadjusted trial balance akan wujud bg transaksi semasa pada bulan itu (cash, A/R,
Inventory, COGS, expenses, Dividends, Drawing and etc), Adjusted Trial Balance akan ada semua akaun
revenue, expenses dan akaun lain termasuk depreciation, prepaid, unearned dan juga drawing tapi akaun
expenses, revenue dan drawing akan tutup kat adjusted ni sbb dia takkan dibawa ke post closing trial
balance. Post closing trial balance takkan ada akaun revenue dan expenses dan akaun yg dah recognized
pada bulan itu sbb kita dah close akaun tu kat adjusted Trial Balance. So accrued expenses/account
payable is not expenses sbb tak jadi expenses sebenar kita, sama macam unearned revenue, selagi tak
guna selagi tak guna/ dah guna tapi ada bagi selagi tu dia akan wujud dalam post closing trial balance dan
akan dibawa ke balance sheet/SFP, accumulated depreciation pon sama.

3. Which of the following is step related in completing the accounting cycle?

A. Source of document
B. Journal
C. Ledger
D. Adjusting trial balance
Exp:
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4. Adjusting entries are journal entries that required to be prepared ______________

A. at the end of accounting period to adjust the amount or balance of certain items or
accounts
B. at the beginning of accounting period to adjust the amount or balance of certain items or
accounts
C. in the middle of accounting period to adjust the amount or balance of certain items or
accounts
D. after every transaction of accounting period to adjust the amount or balance of certain
items or accounts
Exp: Adjusting entries buat kat hujung sbb kita nak close mana akaun yg patut di closed pada
bulan tersebut
5. If the supplies account, before adjustment on 30 June indicated a balance of RM2,500 and
supplies on hand at 30 June totaled RM890, the adjusting entry would be:
A. Debit supplies expense RM890, and credit supplies RM890
B. Debit supplies RM890, and credit supplies expense RM890
C. Debit supplies, RM1,610, and credit supplies expense RM1,610
D. Debit supplies expense RM1,610, and credit supplies RM1,610

Exp: Adjusting entries dibuat dalam soalan ni untuk recognized perbelanjaan pada bulan tu sbb ia
merupakan transaksi semasa pada bulan tersebut dan perbelanjaan yang kita buat bulan ini tidak akan
dibawa ke bulan depan

6. If the equipment account has a balance of RM24,500 and its accumulated depreciation account
has a balance of RM12,500, the book value of the equipment would be:
A. RM12,000
B. RM37,000
C. RM24,500
D. RM12,500
Exp: Book value nilai terkini sesebuah asset dah siap tolak depreciation

7. Which of the following accounts would be classified as a current asset on the balance sheet?
A. Accumulated depreciation
B. Land
C. Accounts receivable
D. Office equipment
Asset current : A/ R, Cash, Inventory Non-current : Asset yang tahan lebih dari setahun ( land, Office
Equipment)
8. Which of the following accounts would not be included in a post-closing trial balance?
A. Owner’s equity
B. Accumulated depreciation
C. Cash
UKAL1014 A172 TUTORIAL 2

D. Fees earned
Exp: Akaun revenue takkan ada waktu post closing sbb waktu buat statement of owner
equity dia dah jadi retain earnings.

9. Which of the following accounts in the Adjusted Trial Balance columns of the end-of-period
work sheet would be extended to the Balance Sheet columns?
A. Miscellaneous expense
B. Drawing
C. Rent revenue
D. Utilities expense
Exp: Revenue dan expenses takkan wujud sbb dah tutup waktu adjusted trial balance

10. Which of the following entries closes the owner’s drawing account at the end of the period?
A. Debit the income summary account, credit the drawing account
B. Debit the drawing account, credit the income summary account
C. Debit the owner’s capital account, credit the drawing account
D. Debit the drawing account, credit the owner’s capital account
Exp: Account yg akan tutup pada closing entries adalah akaun yang ada dalam Income statement (revenue
dan expenses). Walaupun drawing takde dalam income statement tapi kita kena tutup jugak akaun
drawing so kita akan Debit Owner Capital dan Credit Drawing Account (HAFAL!!!)

11. Which of the following accounts would not be closed to the income summary account at the end
of a period?
A. Wages expense
B. Rent expense
C. Fees earned
D. Accumulated depreciation
Exp: Closed revenue dan expenses sahaja accumulated depreciation account kita akan bawak ke bulan
depan.

12. If the estimated amount of depreciation on equipment for a period is RM3,500, the adjusting
entry to record depreciation would be:
A. Debit depreciation expense RM3,500 and credit accumulated depreciation RM3,500
B. Debit depreciation expense RM3,500 and credit equipment RM3,500
C. Debit accumulated depreciation RM3,500 and credit depreciation expense RM3,500
D. Debit equipment RM3,500 and credit depreciation expense RM3,500
Exp : HAFAL!!!

13. An accumulated depreciation of building is an example of ________________________.

A. An asset account in a statement of financial position

B. A contra account to an asset in a statement of financial position
C. An expenses account in a profit/loss account or statement of comprehensive income
D. A revenue account in a profit/loss account or statement of comprehensive income
Exp: Akaun Contra adalah akaun yg bertentangan dengan akaun induk(Parent Account). Cth:
Accumulated depreciation adalah akaun contra bagi asset, Akaun Sales return adalah akaun Contra bagi
Sales.
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14. The following accounts appear in the Statement of Financial Position EXCEPT:

A. Building Account
B. Fees Earned Account
C. Loan Account
D. Owner’s Equity Account
Statement of financial Position adalah Balance Sheet Means Aset = Liabiliti + Owner Equity. So, no
revenue and expenses account. Also account yg kita dah tutup dalam adjusted trial balance

15. Adjusting entries are made to ensure that:

A. Expenses are recognized in the period in which they are incurred.

B. Revenues are recorded in the period in which they are earned.
C. Financial position statement and comprehensive income statement accounts have correct
balances at the end of an accounting period.
D. All of the above.

16. On 1st September 2017, AAN Enterprise purchased an insurance policy for theft, burglary and fire
by cash. The insurance expires on 31th August 2018. The journal entry on 1st September would
be:

A. Dt Prepaid Insurance Account

Cr Accounts Receivable
B. Dt Insurance Expense Account
Cr Accounts Receivable
C. Dt Cash Account
Cr Insurance Expense Account
D. Dt Prepaid Insurance Account
Cr Cash Account

At the end of month biasanya akan jadi Dt Expenses Ct Insurance Expense

17. On 1st August 2017, the beginning Cash Account balance of AAS Enterprise is amounted to
RM32,670. During the month of August the company has cash receipts of RM12,400, and a
closing balance of RM19,150 at the end of the month. Determine the cash payment in the month
of August.

A. RM20,270
B. RM25,920
C. RM13,520
D. RM31,550

18. In the normal accounting cycle, the:

A. Financial statements are prepared after the adjusting entries are posted
B. Financial statements are prepared before the adjusting entries are posted
C. Adjusting and closing entries are journalized before the financial statements are
prepared
D. Post-closing trial balance is prepared before the closing entries are posted
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Exp: Buat journal dulu baru buat prepare statement

19. The post-closing trial balance will:

A. Be prepared before closing entries are posted to the ledger

B. Contain both comprehensive income statement and financial position statement accounts
C. Contain only financial position statement accounts
D. Contain only comprehensive income statement accounts

20. Adjusting entries are required:

A. Because some costs expire with the passage of time and have not yet been
journalized
B. When the company's profits are below the budget
C. When expenses are recorded in the period in which they are incurred
D. When revenues are recorded in the period in which they are earned

Exp: Cth prepaid rent hujung bulan baru jadi expenses, baru kita journalized.

END OF QUESTIONS