Commerce exams sample papers

CA CPT Fundamentals of Accounting Questions with Answers

CA CPT Fundamentals of Accounting Questions
Share with your Friends...
Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Print this page
Print

Fundamentals of Accounting - Practice Test

Question 1
The portion of the acquisition cost of the asset, yet to be allocated is known as ___

Related: Indian Judiciary System Question Bank

A
Realisable value
B
Salvage value
C
Written down value
D
Accumulated value
Question 2
If delcredere commission is allowed for bad debt, consignee will debit the bad debt amount to:
A
Commission Earned A/c
B
Consignor A/c
C
General Trading A/c
D
Debtors A/c
Question 3
Interest on capital will be paid to the partners if provided for in the agreement but only from____
A
Goodwill
B
Reserves
C
Accumulated Profits
D
Profits
Question 4
A change in accounting policy is justified
A
To comply with law
B
To comply with accounting standard
C
To ensure more appropriate presentation of the financial statement of the enterprise
D
All of these
Question 5
Fundamental accounting assumptions are
A
Dual aspect
B
Going concern
C
Business entity
D
Materiality
Question 6
Contra entries are passed only when
A
Double column cash book is prepared
B
None of these
C
Simple cash book is prepared
D
Three-column cash book is prepared
Question 7
A Bank Reconciliation Statement is prepared to know the causes for the difference between:

Related: CPT Mercantile Law Questions / Answers

A
None of these
B
the balance as per bank column of Cash Book and the Pass Book
C
the balances as per cash column of Cash Book and the Pass Book
D
the balance as per bank column of Cash Book and balances as per cash column of Cash Book
Question 8
If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by__
A
The drawer of the bill
B
The discounting charges will be borne by bank
C
The discounting charges will be recorded in memorandum account
D
The drawer of the bill
Question 9
The determination of expenses for an accounting period is based on the principle of
A
Periodicity
B
Matching
C
Objectivity
D
Materiality
Question 10
In the absence of any provision in the partnership agreement, profits and losses are shared
A
None of these
B
Equally
C
In the ratio of capitals
D
In the ratio of loans given by them to the partnership firm
Question 11
Under inflationary conditions, ________ method will show highest value of closing stock?
A
LIFO
B
Weighted Average
C
None of these
D
FIFO
Question 12
Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation, is termed as ___
A
Liability
B
Provision
C
None of these
D
Contingent liability
Question 13
Purchases book records:
A
All cash purchases
B
All credit purchases
C
None of these
D
Credit purchases of goods in trade
Question 14
RPC Ltd. follows the written down value method of depreciating machinery year after year due to

Related: Legal Principle Multiple Choice Questions

A
Comparability
B
Consistency
C
All of these
D
Convenience
Question 15
Which of the following types of information are found in subsidiary ledgers, but not in the general ledger?
A
The portion of total current assets that consist of cash
B
The amount owed to a particular creditor
C
The quantity of a particular product sold during the period
D
Total cost of goods sold for the period
Question 16
The owner of the consignment stock is ________
A
Consignor
B
Consignee
C
Debtors
D
Debtors
Question 17
Change in accounting estimate means
A
Both
B
Differences arising between certain parameters estimated earlier and actual results achieved during the current period.
C
Differences arising between certain parameters estimated earlier and reestimated during the current period.
D
None
Question 18
Which of the following statement is not true:
A
If del-creder’s commission is allowed, bad debt will be debited in consignment account
B
If del-creder’s commission is allowed, bad debt will not be recorded in the books of consignor
C
Del-creder’s commission is generally relevant for credit sales
D
Del-creder’s commission is allowed by consignor to consignee
Question 19
When preparing a Bank Reconciliation Statement, if you start with a debit balance as per the Cash Book, then cheques issued but not presented within the period are _____
A
Deducted
B
Not required to be adjusted
C
Added
D
None of these
Question 20
It is essential to standardize the accounting principles and policies in order to ensure
A
Comparability
B
Consistency
C
All of these
D
Transparency
Question 21
If a concern proposes to discontinue its business from March 2005 and decides to dispose off all its assets within a period of 4 months, the Balance Sheet as on March 31, 2005 should indicate the assets at their ___
A
Historical cost
B
Cost less depreciation
C
Cost price or market value, whichever is lower
D
Net realizable value
Question 22
At the time of death of a partner, firm gets ________ from the insurance company against the Joint Life Policy taken jointly for all the partners.
A
Policy Value for the dead partner and Surrender Value for the rest
B
Policy Amount
C
Surrender Value
D
Surrender Value for all the partners
Question 23
As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the dead partner at ________ percentage per annum.
A
6
B
4
C
7
D
12
Question 24
In Double Entry System of Book-keeping every business transaction affects:
A
The same account on two different dates
B
Two accounts
C
All of these
D
Two sides of the same account
Question 25
Which of the following are of capital nature?
A
Wages paid for installation of machinery
B
Purchase of a goods
C
Cost of repair
D
Rent of a factory
Question 26
Which of the following errors are not revealed by the Trial Balance:
A
wrong totaling of an account
B
errors of commission
C
wrong balancing of an account
D
compensating errors
Question 27
Discount on issue of debentures is a _____

Related: Multiple Questions on Company Law

A
Revenue loss to be charged in the year of issue
B
Capital loss to be written off over the tenure of the debentures
C
Capital loss to be shown as goodwill
D
Capital loss to be written off from capital reserve
Question 28
While finalizing the current year’s profit, the company realized that there was an error in the valuation of closing stock of the previous year. In the previous year, closing stock was valued more by Rs.50,000. As a result
A
Previous year’s profit is understated and current year’s profit is also understated
B
Previous year’s profit is understated and current year’s profit is overstated
C
Previous year’s profit is overstated and current year’s profit is understated
D
Previous year’s profit is overstated and current year’s profit is also overstated
Question 29
The number of production or similar units expected to be obtained from the use of an asset by an enterprise is called as ____
A
Unit life
B
Expected life
C
Production life
D
Useful life
Question 30
Which account is the odd one out?
A
Office Furniture & Equipment
B
Stock of raw materials
C
Plant and Machinery
D
Freehold Land and Buildings
Question 31
Loss on issue of debentures is treated as ___
A
Current asset
B
Intangible asset
C
Current liability
D
Miscellaneous expenditure
Question 32
The balance of the petty cash is ____
A
liability
B
an expense
C
an asset
D
income
Question 33
Dividends are usually paid as a percentage of ______

Related: CPT General Economics Sample Paper

A
Called-up capital
B
Paid-up capital
C
Authorized share capital
D
Net profit
Question 34
Revenue from sale of products, is generally, realized in the period in which

Related: CA CPT Quantitative Aptitude Test

A
Products are manufactured
B
Cash is collected
C
Sale is made
D
None of these
Question 35
In the books of manufacturing concern, opening stock consists of
A
Work-in-progress
B
Finished goods
C
All of these
D
Raw materials
Question 36
Sales for the year ended 31st March, 2005 amounted to Rs. 10,00,000. Sales included goods sold to Mr. A for Rs. 50,000 at a profit of 20% on cost. Such goods are still lying in the godown at the buyer’s risk. Therefore, such goods should be treated as part of
A
Sales
B
Goods in transit
C
Closing stock
D
liability
Question 37
Which of the following is not a sub-field of accounting?
A
Management accounting
B
Cost accounting
C
Book-keeping
D
Financial accounting
Question 38
The preparation of a trial balance is for:
A
Locating errors of principle
B
Locating clerical errors
C
All of these
D
Locating errors of commission
Question 39
In the case of downward revaluation of an asset, which is for the first time revalued, _______ account is debited.
A
Profit & Loss account
B
Fixed Asset
C
Revaluation Reserve
D
General Reserve
There are 39 questions to complete.
Share with your Friends...
Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Print this page
Print

About the author

Vishal Arora