Main Functions of Malaysian Institute of Accountants: A Study of

School: International Islamic University Malaysia (IIUM) - Course: ACC 1101 - Subject: Accounting

PART A-MULTIPLE-CHOICE QUESTIONS (20 minutes) 1.Which one of the following is the main function of Malaysian Institute of Accountants? A.To recruit, educate, train and assess by means of examination or otherwise a body of members skilled in accountancy B.To regulate the practice of the profession of accountancy in Malaysia C.To issue new accounting standards as approved accounting standards D.To regulate all matters relating to securities and derivatives contracts 2.A transaction caused a RM40,000 increase in both assets and total liabilities. Which of the following could this transaction be? A.Purchase of motor vehicle for RM40,000 cash B.Purchase of office equipment for RM70,000, paying RM30,000 cash and issuing a note payable for the balance C.Repayment of a RM40,000 bank loan D.Investment of RM40,000 cash in the business by the owner 3.Which of the following does the IASBConceptual Frameworkregard as essential characteristics of a liability? i.The amount of the obligation must be certain ii.The obligation must be legally enforceable iii.Settlement of the obligation must involve an outflow of economic resource iv.The liability must arise from a past event or transaction A.i and ii only B.i and iv only C.ii and iii only D.iii and iv only 4.General purpose financial statements are prepared primarily for: A.Internal users B.Auditors C.External users D.Government regulators 5.Which of the following statements is true: A.The fundamentals qualitative characteristics that make accounting information useful are relevance and reliability. B.Relevance information has predictive value, confirmatory value or both. C.Verifiability is solely an enhancing characteristics of useful information. D.Information that is a faithful representation is characterize as having predictive and confirmatory value. 6.The principal difference between management accounting and financial accounting is thatfinancialaccountinginformation is: A.Prepared by managers. B.Intended primarily for use by decision makers outside the business organization. C.Prepared in accordance with a set of accounting principles developed by the Institute of Certified Management Accountants. D.Oriented toward measuring solvency rather than profitability. 7.Asia Co. had the following transactions during the month of August 2018: * Cash received from bank loans was $20,000. * Dividends of $9,500 were paid to stockholders in cash. * Revenues earned and received in cash amounted to $33,500. * Expenses incurred and paid were $26,000.