Describe a transaction that would: a. Increase both an asset and a liability. b. Increase one asset and decrease another asset. c. Decrease both a liability and an asset. d. Increase both an asset and retained earnings. e. Decrease both an asset and retained earnings.
Describe a transaction that would:
a. Increase both an asset and a liability.
b. Increase one asset and decrease another asset.
c. Decrease both a liability and an asset.
d. Increase both an asset and
e. Decrease both an asset and retained earnings.
Identify whether the following group of people belongs to internal or external users of
annual reports for a company. Eexplain their need for financial information.
a. Johari, investment banker of CIMB Investment Bank.
b. Daisy Ong, purchasing manager of the company.
c. Happy Berhad, supplier of the company.
d. Great Sdn Bhd, regular customer of the company.
e. Amy, officer from Inland Revenue Board.
Eng Hardwares has the following balance as at 30 November 2020:
Accounts RM’000
Wages(Debit) 110,000
Insurance (Debit) 2,000
Rental (Credit) 50,000
Additional information:
i. Eng Hardwares pays wages to its workers at the end of every month. However, some internal problems arise and it did not pay wages amounting to RM10,000 to its workers on time on the last day of December 2020.
ii. It paid RM10,000 for insurance covered from period December 2020 until March 2021 on 3rd December 2020.
iii. It rents out part of its warehouse to another business for RM2,000 per month and receives the rent on the last day of each quarter on 31 st
March, 30th June, 30th September, and 31 st December. However, the tenant has some financial difficulties and failed to pay the three-month rent from October 2020 to December 2020 on 31 December, 2020.
iv. On 1 December 2020 it received RM21,600 for a one year rental from a new tenant.
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