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Accounting (CA - CPT)

Fundamentals of accounts

15 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

Which of the following is not a sub-field of accounting?

  1. Management accounting
  2. Cost accounting
  3. Financial accounting
  4. Book keeping
  5. None of these
Question 2 Multiple Choice (Single Answer)

It is essential to standardise the accounting principles and policies in order to ensure

  1. transparency
  2. consistency
  3. comparability
  4. All of the above
  5. None of these
Question 3 Multiple Choice (Single Answer)

Revenue from the sale of products is generally realised in the period in which the

  1. cash is collected
  2. sale is made
  3. products are manufactured
  4. bill drawn is accepted
  5. None of these
Question 4 Multiple Choice (Single Answer)

The determination of expenses for an accounting period is on the principle of

  1. objectivity
  2. materiality
  3. matching
  4. entity
  5. None of these
Question 5 Multiple Choice (Single Answer)

Change in accounting estimate means

  1. differences arising between certain parameters estimated earlier and re-estimated during the current period
  2. differences arising between certain parameters estimated earlier and actual results achieved during the current period
  3. differences arising between certain parameters re-estimated earlier and actual results achieved during the current period
  4. Both a and b
  5. None of these
Question 6 Multiple Choice (Single Answer)

The balance of petty cash is

  1. an asset
  2. an expense
  3. income
  4. liability
  5. None of these
Question 7 Multiple Choice (Single Answer)

In double entry system of book keeping, every business transaction affects

  1. two accounts
  2. two sides of the same account
  3. the same account on two different dates
  4. All of the above
  5. None of these
Question 8 Multiple Choice (Single Answer)

Choose the odd one out:

a. Office furniture and equipment
b. Freehold land and building
c. Inventory of raw materials
d. Plant and machinery
e. None of these

  1. a
  2. b
  3. c
  4. d
  5. e
Question 9 Multiple Choice (Single Answer)

Subsidiary ledger contains which of the following information that general ledger does not?

  1. Total cost of goods sold in the period
  2. The quantity of particular product sold in the period
  3. The amount owed to a particular seller
  4. The portion of total current assets that consists of cash
  5. None of these
Question 10 Multiple Choice (Single Answer)

Under inflationary conditions, _________ method will show the highest value of closing inventory.

  1. FIFO
  2. LIFO
  3. weighted average
  4. HIFO
  5. None of these
Question 11 Multiple Choice (Single Answer)

Trial balance is prepared for

  1. locating errors of complete omission
  2. locating errors of principle
  3. clerical errors
  4. All of the above
  5. None of these
Question 12 Multiple Choice (Single Answer)

In the preparation of a bank reconciliation statement, if a debit balance as per the cash book is the starting point, then cheques issued, but not presented within the period, are

  1. deducted
  2. added
  3. not required to be adjusted
  4. None of these
  5. ask the customer to present immediately
Question 13 Multiple Choice (Single Answer)

The portion of the acquisition cost of the asset yet to be allocated to profit and loss account is known as

  1. book value
  2. accumulated value
  3. realisable value
  4. salvage value
  5. None of these
Question 14 Multiple Choice (Single Answer)

External users of financial statements are

  1. government
  2. owners
  3. management
  4. employees
  5. None of these
Question 15 Multiple Choice (Single Answer)

Whenever errors are noticed in the accounting records, they should be rectified

  1. at the preparation of the trial balance
  2. without waiting for the accounting year to end
  3. after the preparation of the final account
  4. in the next accounting year
  5. None of these
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