BKARK1013 A241 Exercise In Class PDF

**BKARK1013 A241** **EXERCISE IN CLASS** **TOPIC 1-CONCEPTUAL FRAMEWORK** **QUESTION 1** State the accounting assumption, principle, information characteristics or constraint that is most applicable in the following cases. 1\. Personal transactions of the proprietor are distinguished from busin...

**BKARK1013 A241** **EXERCISE IN CLASS** **TOPIC 1-CONCEPTUAL FRAMEWORK** **QUESTION 1** State the accounting assumption, principle, information characteristics or constraint that is most applicable in the following cases. 1\. Personal transactions of the proprietor are distinguished from business transactions. 4\. All payments less than RM10 are expensed as incurred. 6\. The company employs the same inventory valuation method from period to period. 7\. Rent paid in advance is recorded as prepaid rent. 8\. Prepare financial statements at least once a year. **QUESTION 2** Kwason Bhd is a company that produces a range of pastries. At present, Kwason Bhd is experiencing cash flow problems and encountering the following issues: a. Kwason Bhd also offers corporate event planning services. Kwason Bhd signed a contract to arrange a special event for Semporna Bhd. The event shall take place next month. The value of the contract is RM 30,000, and 40% of the amount has already been paid by Semporna Bhd. Kwason Bhd recognised the RM30,000 received as the company's revenue. \(b) Kwason Bhd rents a one-storey building to store their corporate event appliances. Kwason Bhd paid RM18,000, which covers the next 12 months. Kwason Bhd recognised the rental payment of RM18,000 as the company's expense. \(c) Kwason Bhd bought a motor vehicle for RM145,000 with an expected useful life of five years. After two years of use and without any valid reasons, Kwason Bhd decided to change the depreciation method from a straight-line basis to a reducing balance method at the rate of 15%. **REQUIRED:**