Question

Question 4

On 1 st March 2014, Azizah started a business. Azizah Trading had the following balances:

Cash at bank RM31500	Fixtures and fittings RM600
Cash in hand RMI ,000	Freehold land and building RM45,000
Inventory RMIO,OOO	Loan from North Finance RM30,000 (5-year loan)
Machinery RM25,000	Accounts payables RM12,000

From the above information, determine Azizah Trading's capital.

Answer question 4 (a)

Compare between liabilities and owner's equity.

Answer question 4 (b). Complete the table.

Liabilities	Owner's equity

Differentiate between accrued expenses and prepaid expenses.

Answer question 4 (c). Complete the table.

Accrued ex enses

Prepaid expenses

From the below accounting concept, match to the following statements that is most closely related to it:

Prudence

Consistency

Going concern

Business entity

Accounting period

Money measurement

Complete the table.

		Accountin concepts
example	Assets are recorded at cost. This cost figure will be recorded in the accounts untii the assets is sold or used up.	Historical cost
	Once a particular financial period is adopted by a business, it is not changed from one period to the next period.
2.	The financial statements of a business report the economic activities of the business only and does not include the economic activities of the owner or owners of the business.
3.	Generally a business is assumed to have a indefinite life, unless there is evidence to indicate otherwise.

Answer 1