Theoretical Framework of Accounting
| Description: CPT - 1 | |
| Number of Questions: 25 | |
| Created by: Ashok Pandey | |
| Tags: CPT - 1 Final Accounts Accounting Process Inventories Company Accounts Theoretical Framework |
Expenses are reflected in the form of
Bookkeeping is mainly concerned with
Which one of the following is correct?
Financial position of the business is ascertained on the basis of
When stock is valued at cost in one accounting period and at lower of cost and net realisable value in another accounting period
Current assets are those assets
During the year 2006, Mr. X purchased goods for Rs. 5, 00, 000 and sold 3/5th of the goods for Rs. 5, 00, 000 and met expenses amounting Rs. 1, 50, 000. He counted net profit as Rs. 50, 000. Which of the accounting concept was followed by him?
On March 31, 2007 after sale of goods worth Rs. 10,000, there is closing stock of Rs. 20, 000. This is
Mr. X has a sundry creditors of Rs. 1, 00, 000 creating a reserve for discount @ 2% on sundry creditors. This is a violation of
X purchased merchandise worth Rs. 1, 00, 000 and sold 60% for Rs. 90, 000 and sold 40% of the remaining for Rs. 60, 000 and met operating expenses of Rs. 10, 000. He counted operating profit as Rs. 40, 000. He has violated
A proprietor, Mr. X has reported a profit of Rs. 1, 00, 000 at the end of the financial year after taking into consideration the following amounts.
(i) The cost of an asset of Rs. 10, 000 has been taken as an expense. (ii) Mr. X is anticipating a profit of Rs. 5, 000 on the future sale of a car shown as an asset in his books. (iii) Salary of Rs. 2000 payable in the financial year has not been taken into account. (iv) Mr. X purchased an asset for Rs. 50, 000 but its fair value on the date of purchases was Rs. 60, 000. Mr. X recorded the value of asset in his books at Rs. 60, 000
On the basis of the above facts answer the following question from the given choices: What is the correct amount of profit to be reported in the books?
The going concern concept is the underlying basis for
How many mandatory Accounting Standards have been issued by ICAI as on July 2012?
A proprietor, Mr. X has reported a profit of Rs. 1, 00, 000 at the end of the financial year after taking into consideration the following amounts.
(i) The cost of an asset of Rs. 10, 000 has been taken as an expense. (ii) Mr. X is anticipating a profit of Rs. 5, 000 on the future sale of a car shown as an asset in his books. (iii) Salary of Rs. 200 payable in the financial year has not been taken into account. (iv) Mr. X purchased an asset for Rs. 50, 000 but its fair value on the date of purchases was Rs. 60, 000. Mr. X recorded the value of asset in his books at Rs. 60, 000
On the basis of the above facts answer the following question from the given choices: Which measurement base should be followed in statement (iv)?
All of the following are limitations of Accounting Standards except
If the change in accounting policy has no material effect in current period but which is reasonably expected to have a material effect in later periods, then
It is essential to standardise the accounting principles and policies in order to ensure
A proprietor, Mr. X has reported a profit of Rs. 1, 00, 000 at the end of the financial year after taking into consideration the following amounts.
(i) The cost of an asset of Rs. 10, 000 has been taken as an expense. (ii) Mr. X is anticipating a profit of Rs. 5, 000 on the future sale of a car shown as an asset in his books. (iii) Salary of Rs. 200 payable in the financial year has not been taken into account. (iv) Mr. X purchased an asset for Rs. 50, 000 but its fair value on the date of purchases was Rs. 60, 000. Mr. X recorded the value of asset in his books at Rs. 60, 000
On the basis of the above facts answer the following question from the given choices: Which concept should be followed in the statement (ii)?
A proprietor, Mr. X has reported a profit of Rs. 1, 00, 000 at the end of the financial year after taking into consideration the following amounts.
(i) The cost of an asset of Rs. 10, 000 has been taken as an expense. (ii) Mr. X is anticipating a profit of Rs. 5, 000 on the future sale of a car shown as an asset in his books. (iii) Salary of Rs. 200 payable in the financial year has not been taken into account. (iv) Mr. X purchased an asset for Rs. 50, 000 but its fair value on the date of purchases was Rs. 60, 000. Mr. X recorded the value of asset in his books at Rs. 60, 000
On the basis of the above facts answer the following question from the given choices: Which concept should be followed in statement (iii)?
Which of the following is the main objective of accounting?
Cost of machinery purchased on 1st April, 2006 Rs. 5, 00, 000 Market value as on 31st March 2007 Rs. 6, 00, 000 As on 31st March 2007, if the company values the machinery at Rs. 6, 00, 000
Which of the following valuation principles is being followed?
In accounting, the words 'analysis and interpretation' are related to
Measurement Discipline deals with
Which of the following is correct in respect of accounting?
Which accounting principle is followed in adopting accounting policy of making provision for doubtful debts @ 5% on debtors?