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Theoretical Framework of Accounting (CA - CPT)

Tests fundamental accounting concepts including the accounting equation, inventory valuation, accounting standards (AS 2, AS 6, AS 10), and bank reconciliation principles for CA - CPT students

15 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

What is the effect on the net asset if cash received from debtors is Rs. 75,000?

  1. It will increase by 75,000.
  2. It will decrease by 75,000.
  3. There will be no change.
  4. It will decrease by Rs. 75,000 - 25,000= 50,000.
  5. None of the above
Question 2 Multiple Choice (Single Answer)

Anju purchased a table of Rs. 25,000 on credit. By this transaction, assets would

  1. increase by Rs. 25,000
  2. decrease by Rs. 25,000
  3. not change
  4. become less by Rs. 10,000
  5. None of the above
Question 3 Multiple Choice (Single Answer)

Which of the following will be the effect when a fixed asset is sold at cost?

  1. Total assets will increase
  2. Total assets will decrease
  3. No change in total assets
  4. Total liability will increase
  5. None of the above
Question 4 Multiple Choice (Single Answer)

Which of the following deals with accounting of fixed assets?

  1. AS 6
  2. AS 10
  3. AS 3
  4. AS 15
  5. AS 16
Question 5 Multiple Choice (Single Answer)

If capital of the business is Rs. 40,000 and liabilities are Rs. 20,000 then the total assets will be

  1. Rs. 60,000
  2. Rs. 40,000
  3. Rs. 20,000
  4. Rs. 80,000
  5. None of the above
Question 6 Multiple Choice (Single Answer)

Debit balance as per passbook means

  1. bank overdraft
  2. cash in hand
  3. cash balance at bank
  4. total sales
  5. None of the above
Question 7 Multiple Choice (Single Answer)

According to AS 2, cost of inventory should exclude

  1. direct labour cost
  2. interest on loan
  3. production overhead
  4. freight inward
  5. duty and taxes paid
Question 8 Multiple Choice (Single Answer)

Accounting Standard 2 by the ICAI defines inventory as

  1. asset held for sale in ordinary course of business
  2. fixed asset
  3. current asset
  4. current liability
  5. None of these
Question 9 Multiple Choice (Single Answer)

Closing inventory is shown in balance sheet under which of the following?

  1. Fixed assets
  2. Current liabilities
  3. Current assets
  4. Miscellaneous expenses
  5. None of the above
Question 10 Multiple Choice (Single Answer)

An asset was purchased for Rs. 6,60,000. Cash paid is Rs. 1,20,000 and the balance bill is drawn for 3 months. For giving effect to this transaction, fixed assets will be debited by which of the following?

  1. Rs. 1,20,000
  2. Rs. 6,60,000
  3. Rs. 5,40,000
  4. No effect
  5. Rs. 7,80,000
Question 11 Multiple Choice (Single Answer)

Cost of goods sold is Rs. 72,000, opening stock is Rs. 23,000 and purchase is Rs. 1,12,000. What will be the value of closing stock?

  1. Rs. 63,000
  2. Rs. 17,000
  3. Rs. 1,61,000
  4. Cannot be determined
  5. None of the above
Question 12 Multiple Choice (Single Answer)

Entry on credit side of bank passbook implies which of the following?

  1. Cash withdrawn
  2. Cash/cheque deposited
  3. Business expenses
  4. Personal expense
  5. None of the above
Question 13 Multiple Choice (Single Answer)

AS 2 deals with which of the following?

  1. Depreciation
  2. Revenue recognition
  3. Inventory
  4. Accounting of investment
  5. Earning per share
Question 14 Multiple Choice (Single Answer)

Which of the following deals with depreciation?

  1. AS 6
  2. AS 2
  3. AS 3
  4. AS 1
  5. AS 9
Question 15 Multiple Choice (Single Answer)

Credit balance in bank passbook means

  1. bank overdraft
  2. favourable balance
  3. total of bank book
  4. balance at cash book
  5. total of cash book
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