- Information
- AI Chat
ACC466 TEST 2 JAN2023 - Question
Financial and Management Accounting (ACC466)
Universiti Teknologi MARA
Recommended for you
Preview text
UNIVERSITI TEKNOLOGI MARA
TEST 2
COURSE : FINANCIAL AND MANAGEMENT ACCOUNTING
COURSE CODE : ACC
TIME : 1 1/2 HOURS
INSTRUCTIONS TO CANDIDATES
- This question paper consist of three (3) questions.
- Answer ALL questions in English.
- Discussion is strictly prohibited.
QUESTION 1
a. Some of the users of financial statements include the manager of a business, employees, creditors, banks, and the government. Briefly explain the purpose of using the information in the financial statements for EACH of the users above. (5 marks) b. Basic accounting equation Current liabilities Management accounting Assets Predictive Timeliness Bookkeeping Expense Non-current assets Comparability Sole proprietor Faithful representation Choose the most appropriate answer provided in the table above to fill in the blanks in the following statements. i. ____________ is the mechanical aspect of recording, classifying and summarizing business transaction. ii. According to the ______________, total assets are equal to the sum of its liabilities and its owner's equity. iii. Motor vehicles and furniture are classified as _______________ in the statement of financial position. iv. A business entity that has limited ability to raise capital, unlimited liability and limited expertise is called a ________________. v. Accrued expenses are treated as ______________ in the statement of financial position. vi. Financial information is relevant if it can make a difference in the decisions made by users of that information. Relevant information contains confirmatory and _____________ value. vii. The characteristic of ____________ implies that financial information faithfully represents the phenomena it purports to represent. This depiction implies that the financial information is complete, neutral, and free from error. viii. The characteristic of _______________ means that the accounting information is available to all stakeholders in time for decision-making purposes. ix. _____________ are resources that have economic-value and owned or controlled by an individual, corporation, or country with the expectation of a future economic benefit. x. Carriage outwards is the example of ____________ and recorded in statement of profit or loss. (10 marks) (Total: 15 marks)
Additional information: 1. Inventory as at 30 June 2022 was valued at RM 45,000. 2. The following were the prepayments as at 30 June 2022: Prepaid commission revenues RM5, Prepaid insurance expenses RM2, 3. An invoice for maintenance and repair costs amounted to RM7,000 was not yet paid as at 30 June 2022. 4. The total amount of interest on loan in the trial balance was for the period of 12 months starting 1 February 2022. 5. The owner took goods worth RM200 for his personal consumption. 6. Depreciation for the year is to be provided as follows: Motor Vehicle 15% per annum reducing balance method, yearly basis Machinery 10% per annum straight line method, yearly basis Fixtures & Fittings 10% per annum straight line method, yearly basis 7. RM 6 00 need to be written off as bad debt when one of the credit customers was declared bankrupt and allowance for doubtful debt is to be adjusted to RM704. Required: a. A Statement of Profit or Loss for the year ended 30 June 2022. (18 marks) b. A Statement of Financial Position as at 30 June 2022. (12 marks) Note 1: Use vertical format presentation for both statements and show all calculations. Note 2: Calculate to the nearest RM. (Total: 30 marks)
QUESTION 3
You were recently hired by Baby Boom Sdn Bhd to assist the company with its financial planning and evaluate the company’s performance. The company’s principal activity is manufacturing and selling baby products. The financial statements of Baby Boom Sdn Bhd for the year ended 31 December 2022 are given below: Baby Boom Sdn Bhd Statement of Financial Position at the end of 31 December 2022 Cost Accumulated Net Book depreciation Value Non-current assets RM RM RM Plant and equipment 500,000 (200,000) 300 , Fixtures and fittings 116 ,000 (24,600) 91 , 391, Current asset Cash at bank 24 , Prepayments 7 , Account receivables 6 0, Inventories 58, 150, 541, Financed by: Shareholder's Equity: Ordinary share capital 300, Retained earnings 55, 355, Non-current liabilities Long term loan 100, Current liabilities Account payables 79, Accruals 7, 86, 541,
ACC466 TEST 2 JAN2023 - Question
Course: Financial and Management Accounting (ACC466)
University: Universiti Teknologi MARA
