1. Tutorial 1: Conceptual Framework
Question 1
What is accounting? How does it differ from bookkeeping?
Question 2
Identify the groups of external and internal users of accounting. Provide example of decisions
made by each users of accounting information
Question 3
(a) What is the relationship between a business and the proprietor in the accounting context?
(b) How should a proprietor record the monthly installments of his personal car if payments were
made through the business account?
Question 4
C. Charles operates a laundry business. During the year, he receives RM30,000 for services
rendered. His customers still owe him RM10,000 for services rendered in the same year. The
operating expenses paid so far amount to RM15,000 while accrued expenses total RM5,000.
(a) Calculate his total revenue and total expenses for the year.
(b) What is his profit for the year?
(c) Which accounting concept is being applied here?