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CA CPT Test Series 1

Fundamentals of Accounting for CA CPT, MBA and BBA examinations covering accounting standards, principles, concepts, company accounts and financial statements.

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Questions

Question 1 Multiple Choice (Single Answer)

For employer, TDS on salary is a/an ……………

  1. <span style="font-size:">asset
  2. liability
  3. <span style="font-size:">expense
  4. <span style="font-size:">income
Question 2 Multiple Choice (Single Answer)

Basically accounting process divide in 8 processes, 'IMRCSAIC'. Which one is correctly match about the acronym of 'IMRCSAIC'?

  1. I = Illustration
  2. C = Collecting
  3. S = Summarising
  4. A = Accounting
Question 3 Multiple Choice (Single Answer)

Accounting Information System classify in four steps, i.e. inputs, processing, output & user. Which task belongs to the step of processing?

  1. Business transaction
  2. Management plan & policies
  3. Regulatory filings
  4. Rating agency
Question 4 Multiple Choice (Single Answer)

The double entry system of accounting is based on a set of principles, which are called GAAP. What is the full form of GAAP?

  1. Generally Applied Accounting Principles
  2. Generally Accepted Accounting Policies
  3. Generally Accepted Accounting Principles
  4. Generally Accepted Accounts Principles
Question 5 Multiple Choice (Single Answer)

One of the main function and objective of Accounting is to fulfill the statutory requirement of various regulatory bodies such as Registrar of Companies, SEBI, Income Tax authorities and the government. What is the expansion of SEBI?

  1. Secure Exchange Board of India
  2. Securities Exchange Body of India
  3. Securities Extension Board of India
  4. Securities Exchange Board of India
Question 6 Multiple Choice (Single Answer)

In which year the ICAI established Accounting Standard Board to bring uniformity in terminology, accounting concepts, conventions and assumptions?

  1. 1980
  2. 1944
  3. 1949
  4. 1977
Question 7 Multiple Choice (Single Answer)

At present there are …….. accounting standards (issued, applicable & mandatory) issued by the ASB of the ICAI.

  1. 26
  2. 28
  3. 31
  4. 32
Question 8 Multiple Choice (Single Answer)

Which accounting standard was withdrawn pursuant to AS-26 becoming mandatory?

  1. AS-6
  2. AS-7
  3. AS-8
  4. AS-9
Question 9 Multiple Choice (Single Answer)

Which accounting standard belongs to cash flow statement?

  1. AS-6
  2. AS-3
  3. AS-10
  4. AS-13
Question 10 Multiple Choice (Single Answer)

Which accounting concept defines as: 'The business stands apart from other organizations as an economic unit. It is necessary to record the business's transactions to distinguish them from the owner's personal transactions'?

  1. Money Measurement Concept
  2. Business Entity Concept
  3. Accrual Concept
  4. Periodicity Concept
Question 11 Multiple Choice (Single Answer)

Which of the following pairs is mismatched?

  1. AS-17 : Segment Reporting
  2. AS-24 : Discounting Operations
  3. AS-26 : Tangible Assets
  4. AS-19 : Leases
Question 12 Multiple Choice (Single Answer)

Purchased goods worth Rs. 40,000 @ 10% Trade Discount and 5% Cash Discount and the amount is paid by cheque. What is the amount of discount recorded in the books?

  1. Rs. 3,600
  2. Rs. 1,800
  3. Rs. 2,000
  4. Rs. 4,000
Question 13 Multiple Choice (Single Answer)

In case of Pro-rata allotment, which account (other than Bank A/c) need to be debited while making receipt of allotment?

  1. Share capital A/c
  2. Share allotment A/c
  3. Share call A/c
  4. Share application A/c
Question 14 Multiple Choice (Single Answer)

Amount received on right shares transfers to which account?

  1. Share capital account
  2. Capital reserve account
  3. Securities premium account
  4. Forfeited share account
Question 15 Multiple Choice (Single Answer)

What is the correct enty in the books of Accounts for the following transaction?
Purchased goods worth Rs. 60,000 from M/s Rameshlal & Co. @ 10% Trade discount & @ 3% Cash discount. Half amount is paid by cheque.

  1. Dr. Purchase a/c 54,000
    Cr. Bank a/c 52,380
    Cr. Discount rec. a/c 1620
  2. Dr. Purchase a/c 27000
    Cr. Bank a/c 25,380
    Cr. Discount rec. a/c 1620
  3. Dr. Purchase a/c 54,000
    Cr. Bank a/c 26,190
    Cr. M/s Rameshlal & Co. 27,000
    Cr. Discount rec. a/c 810
  4. Dr. Purchase a/c 54,000
    Cr. Bank a/c 27,000
    Cr. M/s Rameshlal & Co. 27,000
Question 16 Multiple Choice (Single Answer)

Which of the following are include in Equity Shareholders' Funds?
I. Equity Share Capital

II. Preference Share Capital

III. Reserve & Surplus

IV. Long-term Funds

  1. I, II, III & IV
  2. I & II
  3. I & III
  4. I, III & IV
Question 17 Multiple Choice (Single Answer)

Which one is the formula for calculating depreciation?

  1. (Cost - Scrap Value) * Life of Assets
  2. (Cost - Scrap Value) / Life of Asset
  3. (Cost + Scrap Value) * Life of Asset
  4. (Cost + Scrap Value) / Life of Asset
Question 18 Multiple Choice (Single Answer)

ABC Co. issued 50,000 equity shares of Rs.10 at par & amount payable Rs. 5 on application, Rs. 3 on allotment & Rs. 2 on first call. All amount received on time except of 500 shares, on which first call amount is not received. Their shares forfeited and re-issued at Rs. 9 per share. What is the entry of forfeiture recored in the books?

  1. Dr. Share capital a/c 5,000
    Cr. Share application a/c 2,500
    Cr. Share allotment a/c 1,500
    Cr. Share forfeiture a/c 1,000
  2. Dr. Share capital a/c 5,000
    Cr. Share first call a/c 1,000
    Cr. Share forfeiture a/c 4,000
  3. Dr. Share capital a/c 4,000
    Cr. Share forfeiture a/c 4,000
  4. Dr. Share capital a/c 5,000
    Cr. Share first call unpaid a/c 1,000
    Cr. Share forfeiture a/c 4,000
Question 19 Multiple Choice (Single Answer)

Calculate the cost of goods sold.
Purchases- Rs.8,00,000
Sales- Rs.12,00,000
Opening stock- Rs.2,00,000
Closing stock- Rs.75,000
Wages- Rs.10,000
Carriages- Rs.12,000

  1. 4,00,000
  2. 9,25,000
  3. 9,47,000
  4. 10,97,000
Question 20 Multiple Choice (Single Answer)

According to the Matching concept, Revenue - ? = Profit. Which one replaced by '?' mark?

  1. expenses
  2. assets
  3. liabilities
  4. loss
Question 21 Multiple Choice (Single Answer)

Which financial statement represents the accounting equation, Assets = Liabilities + Owner's equity?

  1. Income statement
  2. Balance sheet
  3. Statement of cash flows
  4. Statement of fund flows
Question 22 Multiple Choice (Single Answer)

Personal income tax should be charged to

  1. capital
  2. direct expense of business
  3. indirect expense of business
  4. indirect income of business
Question 23 Multiple Choice (Single Answer)

In the absence of any provision in the partnership agreement, profits and losses are shared

  1. in the ratio of capitals contributed
  2. in accordance with Partnership Act.
  3. in the ratio of loans given by them to the firm
  4. as per Income Tax Act.
Question 24 Multiple Choice (Single Answer)

Shares issued to promoters of the company, crediting the share capital should be debited to

Dr. ..............?.................
Cr. Share Capital

  1. Promoters account
  2. Services account
  3. Formation expenses account
  4. Goodwill account
Question 25 Multiple Choice (Single Answer)

The IFRS stands for …………… Financial Reporting …………..

  1. <span style="font-size:12.0pt;font-family:"Times" new="">Indian, Standard
  2. <span style="font-size:12.0pt;font-family:Times" new="" roman;mso-fareast-font-family:times="" roman;mso-ansi-language:en-us;mso-fareast-language:en-us;mso-bidi-language:ar-sa="">Indian, System
  3. <span style="font-size:12.0pt;font-family:Times" new="" roman;mso-fareast-font-family:times="" roman;mso-ansi-language:en-us;mso-fareast-language:en-us;mso-bidi-language:ar-sa="">International, System
  4. <span style="font-size:12.0pt;font-family:Times" new="" roman;mso-fareast-font-family:times="" roman;mso-ansi-language:en-us;mso-fareast-language:en-us;mso-bidi-language:ar-sa="">International, Standard
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