• Fundamentals of Accounting - 1
Back
0

Fundamentals of Accounting - 1

Description: CA CPT Part 1 Fundamental of accounts
Number of Questions: 25
Created by:
Tags: CA CA-CPT Financial Accounting BBA MBA Accounts Business Accouting Fundamentals of Accounting
Start the Quiz
Attempted 0/25 Correct 0 Score 0
‹
›

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

Show answer
Correct Option: B
Explanation:

Going concern concept gives the fundamental assumption that the business entity will continue fairly for a long time.

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

Show answer
Correct Option: C
Explanation:

Accounting principles are accepted based on the past experiences.

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

Show answer
Correct Option: D
Explanation:

When an entity practice the substance over form, it means that the financial statements reflect the financial reality of the entity (Substance) rather than the legal form of the transactions and events (forms), which underlie them.

Accounting is the language of

  1. businessmen

  2. businesses

  3. owners

  4. creditors

Show answer
Correct Option: B
Explanation:

All accouting information belong to the business, so accounting term as the language of business.

Plant and machinery are the examples of

  1. fictitous assets

  2. current assets

  3. liquid assets

  4. fixed assets

Show answer
Correct Option: D
Explanation:

Fixed assets held for long time use in businss itself for the purpose of providing or producing of goods or services.

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

  1. Employee

  2. Management

  3. Owner

  4. Government

Show answer
Correct Option: D
Explanation:

Government is the external user of accounting to know the taxes/duties paid or payable by the business.

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

Show answer
Correct Option: B
Explanation:

Credit transaction is a non-cash transaction, which never affect the balance of cash/bank.

Who is credited for the birth of accounting?

  1. F. W. Taylor

  2. Henry Fayol

  3. Lucas Pacioli

  4. J. R. Baliboi

Show answer
Correct Option: C
Explanation:

 Lucas Pacioli is considered as the father of accounting.

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

  1. Government

  2. Creditor

  3. Investor

  4. Employee

Show answer
Correct Option: D
Explanation:

Employees are the internal user of accouting, to know the performance of the business for getting benefits & their security to the job.

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.

Show answer
Correct Option: D
Explanation:

The system of booking known as double-entry book keeping was introduced by Lucas Pacioli in 1494 A. D.

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

Show answer
Correct Option: C
Explanation:

Outstanding salary is the example of representative personal account.

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

Show answer
Correct Option: C
Explanation:

A cash memo is issued for this transaction.

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

Show answer
Correct Option: C
Explanation:

This transaction affects only one side of an accounting equation

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

Show answer
Correct Option: D
Explanation:

Capital  = Assets - Liabilities. i.e. Capital = 25,00,000 - 10,00,000

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

Show answer
Correct Option: A
Explanation:

There is no affect on the value of cash because this is a non-cash transaction.

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

Show answer
Correct Option: D
Explanation:

Motor car is the asset and comes in debit  and its increased the value of capital so the capital is to be credited.

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

Show answer
Correct Option: D
Explanation:

Sales value not affected because the value of sales amount not recoved is transffer to Bad Debt A/c.

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

Show answer
Correct Option: A
Explanation:

Drawings a/c represent for the owner of the business, so it is the example of representative personal account.

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

Show answer
Correct Option: D
Explanation:

Cash comes in so debited, dicsount is an expenes so debited and Harish is giver so credited.

Outstanding salary is a/an

  1. asset

  2. liability

  3. expense

  4. income

Show answer
Correct Option: B
Explanation:

Outstanding salary is a liability

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

Show answer
Correct Option: C
Explanation:

Capital = Assets - Liabilities. i.e. Capital = 32,20,000 - 11,20,000.

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

Show answer
Correct Option: C
Explanation:

Bad debts recoverd is an income so it is credit. 

Which is a representative personal account?

  1. Cash

  2. Bills payable

  3. Salary

  4. Dinesh's A/c

Show answer
Correct Option: B
Explanation:

Bills payable is a representative personal account

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

Show answer
Correct Option: C
Explanation:

A furniture is an asset and the after sale value of the furniture is decrease.

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

  1. contra voucher

  2. invoice

  3. debit voucher

  4. credit voucher

Show answer
Correct Option: C
Explanation:

Debit voucher also known as payment voucher and the entry is of a payment transaction.

- Hide questions
ADVERTISEMENT

Find more quizzes from top tags

general knowledge
3615 Quizzes
119858 Questions
 technology
307 Quizzes
36705 Questions
 sports
963 Quizzes
19148 Questions
 history
1187 Quizzes
13475 Questions
 physics
598 Quizzes
13441 Questions
 biology
1160 Quizzes
12174 Questions
 science & technology
551 Quizzes
11015 Questions
 chemistry
490 Quizzes
9892 Questions
 maths
518 Quizzes
9324 Questions
 softskills
0 Quizzes
7131 Questions