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Accounting Process

The document contains sample multiple choice questions (MCQs) for the CA Foundation Paper 1 on Accounting principles and practices, specifically focusing on theoretical frameworks relevant for upcoming examinations. It includes various questions covering topics such as financial statements, accounting policies, and bank reconciliation statements, along with their correct answers. Additionally, it encourages sharing the content with peers and offers a link to purchase a comprehensive MCQ test series.

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4 views

Accounting Process

The document contains sample multiple choice questions (MCQs) for the CA Foundation Paper 1 on Accounting principles and practices, specifically focusing on theoretical frameworks relevant for upcoming examinations. It includes various questions covering topics such as financial statements, accounting policies, and bank reconciliation statements, along with their correct answers. Additionally, it encourages sharing the content with peers and offers a link to purchase a comprehensive MCQ test series.

Uploaded by

ssonyyadav14
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Sample Multiple Choice Questions (MCQ's) for CA Foundation -

Paper 1 - Principal and Practice of Accounting - Chapter 1


THEORETICAL FRAMEWORK - For Practice relevant for Dec 22 and
May/June 23 Examinations

Q:1 Financial statements are a part of

1. Accounting
2. Book-keeping.
3. Management Accounting.
Answer: 1

Q:2 A businessman purchased goods for Rs 25,00,000 and


sold 80% of such goods during the accounting year ended
31st March, 2020. The market value of the remaining
goods was Rs 4,00,000. He valued the closing Inventory at
cost. He violated the concept of

1. Money measurement.
2. Conservatism.
3. Cost.
Answer: 2

Q:3 Is the statement True or False

The drawer’s signed assent on bill of exchange, to the


order of the drawee is called an acceptance:

1. True
2. False
Answer: 2

Q:4 If repair cost is Rs 25,000, whitewash expenses are Rs


5,000, (both these expenses relate to presently used
building) cost of extension of building is Rs 2,50,000 and
cost of improvement in electrical wiring system is Rs
19,000; the amount to be expensed is

1. Rs 2,99,000.
2. Rs 44,000.
3. Rs 30,000.
Answer: 3

Q:5 Present liability of uncertain amount, which can be


measured reliably by using a substantial degree of
estimation is termed as _.

1. Provision.
2. Liability
3. Contingent liability.
Answer: 1.

Q:6 Accounting policy for inventories of Xeta Enterprises


states that inventories are valued at the lower of cost
determined on weighted average basis or net realizable
value. Which accounting principle is followed in adopting
the above policy?

1. Materiality.
2. Prudence.
3. Substance over form.
Answer: 2

Q:7 Book value of machinery on 31st March, 2019 Rs


10,00,000 . Market value as on 31st March, 2019 if sold Rs
11,00,000. As on 31st March, 2019, if the company values
the machinery at Rs 11,00,000, which of the following
valuation principle is being followed?

1. Historical Cost.
2. Present Value.
3. Realisable Value.

Answer: 3

Q:8 Accounting Standards


1. Harmonise accounting policies.
2. Eliminate the non-comparability of financial statements.
3. Improve the reliability of financial statements.
4. All the three.
Answer: 4

Q:9 The Government of India in consultation with the ICAI


decided to

1. Adapt with IFRS.


2. Converge with IFRS.
3. apply IFRS in India.
4. notify IFRS in India.

Answer: 2

CA Foundation Accounting MCQ for Chapter


2 - Click Here
To get back to the Chapterwise MCQ list Page

Hope you can find this article helpful. If you did like the content then
Share it with your friends who are preparing for CA Foundation Exams or
who will be giving their CA Foundation Exams in the near future.

In order to buy MCQ Test Series (Having more than 1000 Questions) for
CA Foundation Examinations. Please visit Link
- https://bit.ly/FoundationMCQ

Q:1 A Ltd. has a Rs 35,000 account receivable from


Mohan. On January 20, Mohan makes a partial payment of
Rs 21,000 to A Ltd. The journal entry made on January 20
by A Ltd. to record this transaction includes:
1. A credit to the cash received account of Rs 21,000
2. A credit to the Accounts receivable account of Rs 21,000.
3. A debit to the cash account of Rs 14,000.
Answer: 2

Q:2 At the end of the accounting year all the nominal


accounts of the ledger book are

1. Balanced but not transferred to profit and loss account


2. Not balanced and also the balance is not transferred to the profit and
loss account
3. Not balanced and their balance is transferred to the profit and loss
account.
Answer: 3

Q:3

S.N Account Debit (Rs)


Credit(Rs)
o. heads

1. Sales 15,000

10,000
2. Purchases

Miscellaneou 2,500
3.
s expenses

4. Salaries 2,500

12,500
Total 17,500

The difference in trial balance is due to _____________

1. Wrong placing of sales account


2. Wrong placing of salaries account
3. Wrong placing of miscellaneous expenses amount
Answer: 2
Q:4 In which book of original entry, will you record a bills
receivable of Rs1,000, which was received from a debtor
in full settlement for a claim of Rs1,100, is dishonoured
____________________.

1. Purchases Return Book


2. Bills Receivable Book
3. Journal Proper (General Journal)
Answer: 3

Q:5 The total of discounts column on the debit side of the


cash book, recording cash discount deducted by
customers when paying their accounts, is posted to the
__________________________

1. Credit of the discount allowed account.


2. Debit of the discount allowed account
3. Credit of the discount received account.
Answer: 2

Q:6 If a purchase return of Rs1,000 has been wrongly


posted to the debit of the sales returns account, but has
been correctly entered in the suppliers’ account, the total
of the

1. Trial balance would show the debit side to be Rs1,000 more than the
credit.
2. Trial balance would show the credit side to be Rs 1,000 more than the
debit.
3. The debit side of the trial balance will be Rs 2,000 more than the credit
side.

Answer: 3

For Practice relevant for Dec 22 and May/June 23 Examinations


Q:1 When the balance as per Cash Book is the starting
point, direct deposits by customers are:

1. Added
2. Subtracted
3. Not required to be adjusted.
Answer: 1

Q:2 A debit balance in the depositor’s Cash Book will be


shown as:

1. A debit balance in the Bank Statement.


2. A credit balance in the Bank Statement.
3. An overdrawn balance in the Bank Statement.
Answer: 2

Q:3 When balance as per Pass Book is the starting point,


interest allowed by Bank is

1. Added
2. Subtracted
3. Not required to be adjusted
Answer: 2

Q:4 A Bank Reconciliation Statement is prepared with the


help of:

1. Bank statement and bank column of the Cash Book.


2. Bank statement and cash column of the Cash Book
3. Bank column of the Cash Book and cash column of the Cash Book
Answer: 1

Q:5 The cash book showed an overdraft of Rs 1,50,000,


but the pass book made up to the same date showed that
cheques of Rs 10,000, Rs 5,000 and Rs 12,500 respectively
had not been presented for payments; and the cheque of
Rs 4,000 paid into account had not been cleared. The
balance as per the pass book will be:
1. Rs 1,10,000
2. Rs 2,17,500
3. Rs 1,26,500
Answer: 3

Q:6 When drawing up a Bank Reconciliation Statement, if


you start with a debit balance as per the Bank Statement,
the unpresented cheques should be:

1. Added;
2. Deducted;
3. Not required to be adjusted.
Answer: 1

Q:7 When drawing up a BRS if you start with a Dr. Balance


as per Bank Statement, the following are added:
1. Cheque issued but not presented to bank
2. B/R collected directly by bank
3. Overcasting of the Dr. Side of bank A/c in the cash
book.

Which of the following statement/s is/are correct

1. only statement 1
2. only statement 1& 2
3. all of the above
4. only statement 3.
Answer: 2

CA Foundation Accounting MCQ for Chapter


3 - Click Here
To get back to the Chapterwise MCQ list Page

Hope you can find this article helpful. If you did like the content then
Share it with your friends who are preparing for CA Foundation Exams or
who will be giving their CA Foundation Exams in the near future.

In order to buy MCQ Test Series (Having more than 1000 Questions) for
CA Foundation Examinations. Please visit Link
- https://bit.ly/FoundationMCQ

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