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Fundamentals of Accounting - 1

CA CPT Part 1 Fundamental of accounts

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Questions

Question 1 Multiple Choice (Single Answer)

Which accounting concept gives the fundamental assumption that the business entity will continue fairly for a long time?

  1. Periodicity concept
  2. Going concern concept
  3. Money measurement concept
  4. Accrual concept
Question 2 Multiple Choice (Single Answer)

What is the full form of GAAP?

  1. Generally Applied Accounting Principles
  2. Generally Accounting Applicable Principles
  3. Generally Accepted Accounting Principles
  4. Generally Advisable Accounting Principles
Question 3 Multiple Choice (Single Answer)

Which accounting principle is used to ensure that financial statements give a complete, relevant and accurate picture of transactions and events?

  1. Principle of full disclosure
  2. Principle of consistency
  3. Principle of materiality
  4. Principle of substance over form
Question 4 Multiple Choice (Single Answer)

Accounting is the language of

  1. businessmen
  2. businesses
  3. owners
  4. creditors
Question 5 Multiple Choice (Single Answer)

Plant and machinery are the examples of

  1. fictitous assets
  2. current assets
  3. liquid assets
  4. fixed assets
Question 6 Multiple Choice (Single Answer)

Which of the following is an example of an external user of accounting?

  1. Employee
  2. Management
  3. Owner
  4. Government
Question 7 Multiple Choice (Single Answer)

What is/are the type(s) of transaction Purchased machinery for Rs. 50,00,000 from ABC Machines Works, if the amount is paid by cheque?

  1. Cash transaction
  2. Credit transaction
  3. Both (1) & (2)
  4. None of these
Question 8 Multiple Choice (Single Answer)

Who is credited for the birth of accounting?

  1. F. W. Taylor
  2. Henry Fayol
  3. Lucas Pacioli
  4. J. R. Baliboi
Question 9 Multiple Choice (Single Answer)

Which of the following is the example of an internal user of accounting?

  1. Government
  2. Creditor
  3. Investor
  4. Employee
Question 10 Multiple Choice (Single Answer)

When was the system of booking, known as double-entry book keeping, introduced?

  1. 8500 B. C.
  2. 3600 B. C.
  3. 1340 A. D.
  4. 1494 A. D.
Question 11 Multiple Choice (Single Answer)

Which of the following is an example of representative personal account?

  1. Rahul's account
  2. Tata company limited account
  3. Outstanding salary account
  4. HDFC Bank account
Question 12 Multiple Choice (Single Answer)

For which of the following transactions a cash memo is issued?

  1. Cash paid to Rajesh
  2. Cash recieved from Hari
  3. Goods sold for cash
  4. Paid salary
Question 13 Multiple Choice (Single Answer)

Which transaction affects only one side of an accounting equation?

  1. Capital introduced in cash
  2. Cash paid to creditors
  3. Purchased furniture by cash
  4. Purchase of goods on credit
Question 14 Multiple Choice (Single Answer)

If assets are Rs. 25,00,000 and liabilities are Rs. 10,00,000, find out the capital amount.

  1. Rs. 35,00,000
  2. Rs. 25,00,000
  3. Rs. 10,00,000
  4. Rs. 15,00,000
Question 15 Multiple Choice (Single Answer)

Which of the following is not affected by depreciation charged on a motor car?

  1. Value of cash
  2. Value of motor car
  3. Value of profit or loss
  4. Total of balance sheet
Question 16 Multiple Choice (Single Answer)

Mr. Suresh brings his private motor car for his business activities. What will be the journal entry for this?

  1. Debit cash and credit: capital
  2. Debit motor car and credit: cash
  3. Debit capital and credit: cash
  4. Debit motor car and credit: capital
Question 17 Multiple Choice (Single Answer)

The goods were sold to Rajesh worth Rs. 10,000 @ 4% sales tax and recorded in the books. After somtimes, Rajesh becomes insolvent and paid only 60 paise in a rupee. Which of the following accounts is not affected?

  1. Cash A/c
  2. Rajesh's A/c
  3. Sales Tax A/c
  4. Sales A/c
Question 18 Multiple Choice (Single Answer)

What is the classification of drawings A/c for cash withdrawn for personal use?

  1. Representative personal account
  2. Natural personal account
  3. Artificial personal account
  4. Real account
Question 19 Multiple Choice (Single Answer)

What is the journal entry for transaction of cash received from Harish at 5% cash discount?

  1. Dr. Harish, Cr. cash and Cr. discount
  2. Dr. cash, Cr. Harish and Cr. discount
  3. Dr. cash, Dr. discount received and Cr. Harish
  4. Dr. cash, Dr. discount and Cr. Harish
Question 20 Multiple Choice (Single Answer)

Outstanding salary is a/an

  1. asset
  2. liability
  3. expense
  4. income
Question 21 Multiple Choice (Single Answer)

In a businees, the following assets and liabilities are shown as on 31st March, 2010: Cash at Bank Rs. 5,50,000, Furniture Rs. 4,20,000, Plant & Machinery Rs. 20,00,000, Debtors Rs. 1,00,000, Stock in Hand Rs. 1,50,000, Creditors Rs. 1,20,000 and Bank Loan Rs. 10,00,000. What is the difference of amount and where should it be transferred?

  1. Rs. 32,20,000, Capital A/c
  2. Rs. 21,00,000, Cash A/c
  3. Rs. 21,00,000, Capital A/c
  4. Rs. 11,20,000, Cash A/c
Question 22 Multiple Choice (Single Answer)

What is the journal entry for bad debts recoverd from Mohanlal worth Rs. 2,000?

  1. Dr. cash and Cr. Mohanlal
  2. Dr. bad debts and Cr. cash
  3. Dr. cash and Cr. bad debts recoverd
  4. Dr. Mohanlal and Cr. bad debts recoverd
Question 23 Multiple Choice (Single Answer)

Which is a representative personal account?

  1. Cash
  2. Bills payable
  3. Salary
  4. Dinesh's A/c
Question 24 Multiple Choice (Single Answer)

Which of the following is an example of decreased value of an asset?

  1. Profit transferred to capital a/c
  2. Loan converted to capital
  3. Sold furniture
  4. General reserve transferred to capital reserve
Question 25 Multiple Choice (Single Answer)

The entry paid Rs. 5,000 to Umesh will be recorded in ________.

  1. contra voucher
  2. invoice
  3. debit voucher
  4. credit voucher
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