Accounting Assignment

1994 Words Mar 12th, 2012 8 Pages
Question 1:
What are the ideas behind the establishment of Malaysian Institute of Accountants (MIA)? (5marks)

Answer: MIA is a statutory body established under the Accountants Act, 1967 to regulate and develop the accountancy professions in Malaysia. MIA’s responsibilities include education and quality assurance as well as enforcement which are carried out to ensure that the credibility to the profession is maintained and that public interest is continuously upheld. Its regulatory role is carried out through the following approaches:- * Having an effective and competitive assessment framework in admitting members into MIA to ensure
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(5marks)

Answer:
Reason for preparing accounts for a particular organization.
a)To report on company performance to various users and for internal purpose as well * Able to breakeven, made profits or losses ? * May refer to Balance Sheet on company position and Income Statement on company performance.
b)To create and maintain the creditors trust. * Able to repay? * Do repayments are efficient? * Creditors trust? Are we maintaining the trust well?
c)To know money owed to the company(debtors)? * Collection. Efficient? * Bad debts?
d)What is the cash situation of the company? * Sufficient? Able to meet short-term obligations? * Is the company efficiently using the company funds?
e)Where can efficiencies/expansion required? * Ready to expand * Domestically or globally?
f)To maintain record of the business.

g)To know financial position.

Question 5:
Explain the FOUR(4) qualities that the accounting information should have. (8marks)

Answer:

(i) RELEVANCE
In accounting, the term relevance means it will make a difference to a decision maker.
For example, in the decision to replace equipment that has been used for the past six years, the original cost of the equipment does not
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