CA Foundation Financial Accounts MCQ

CA Foundation Financial Accounts MCQ

1. All of the following are functions of Accounting except


2. It is essential to standardize the accounting principles and policies in order to ensure


3. On March 31, 2015 after sale of goods worth ` 2,000, he is left with the closing inventory of
` 10,000. This is


4. Two primary qualitative characteristics of financial statements are


5. Assets are held in the business for the purpose of


6. Financial statements are part of


7. Economic life of an enterprise is split into the periodic interval to measure its performance is as per


8. Accounting Standards in India are issued by


9. The determination of expenses for an accounting period is based on the principle of


10. Users of accounting information include


11. A purchased a car for 5,00,000, making a down payment of 1,00,000 and signing a 4,00,000 bill payable due in 60 days. As a result of this transaction


12. Decrease in the amount of trade payables results in


13. Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?


14. Financial statements do not consider


15. On January 1, Sohan paid rent of ` 5,000. This can be classified as


16. A change in accounting policy is justified


17. Accounting Standards


18. The concept of conservatism when applied to the balance sheet results in


19. Purposes of an accounting system include all the following except


20. The areas wherein different accounting policies can be adopted are


21. Capital brought in by the proprietor is an example of


22. Selection of an inappropriate accounting policy decision may


23. Mohan purchased goods for `15,00,000 and sold 4/5th of the goods amounting 18,00,000 and met expenses amounting 2,50,000 during the year, 2015. He counted net profit as 3,50,000. Which of the accounting concept was followed by him?


24. Revenue from sale of products, is generally, realized in the period in which


25. All the following items are classified as fundamental accounting assumptions except


26. Accounting policies refer to specific accounting


27. Kanika Enterprises follows the written down value method of depreciating machinery
year after year due to


28. Book-keeping is mainly concerned with


29. Financial position of the business is ascertained on the basis of


30. Which of the following is not a subfield of accounting?


31. A businessman purchased goods for 25,00,000 and sold 80% of such goods during the accounting year ended 31st March, 2015. The market value of the remaining goods was 4,00,000. He valued the closing Inventory at cost. He violated the concept of


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These books are relevant for CA Foundation May 2019

Module 1

Initial Pages

Chapter 1: Theoretical Framework

Unit 1: Meaning and Scope of Accounting

Unit 2: Accounting Concepts, Principles And Conventions

Unit 3: Accounting Terminology – Glossary

Unit 4: Capital And Revenue Expenditures and Receipts 

Unit 5: Contingent Assets and Contingent Liabilities

Unit 6: Accounting Policies

Unit 7: Accounting as a Measurement Discipline – Valuation Principles, Accounting Estimates

Unit 8: Accounting Standards

Unit 9: Indian Accounting Standards

Chapter 2: Accounting Process

Unit 1: Basic Accounting Procedures – Journal Entries

Unit 2: Ledgers

Unit 3: Trial Balance

Unit 4: Subsidiary Books

Unit 5: Cash Book

Unit 6: Rectification of Errors

Chapter 3: Bank Reconciliation Statement

Chapter 4: Inventories

Chapter 5: Concept and Accounting of Depreciation

Chapter 6: Accounting for Special Transactions

Unit 1: Bill Of Exchange and Promissory Notes

Unit 2: Sale of Goods on Approval or Return Basis

Unit 3: Consignment

Unit 4: Joint Ventures

Unit 5: Royalty Accounts

Unit 6: Average Due Date

Unit 7: Account Current


Initial Pages

Chapter 7: Preparation of Final Accounts of Sole Proprietors

Unit 1: Final Accounts of Non-Manufacturing Entities

Unit 2: Final Accounts of Manufacturing Entities

Chapter 8: Partnership Accounts

Unit 1: Introduction to Partnership Accounts

Unit 2: Treatment of Goodwill in Partnership Accounts

Unit 3: Admission of a New Partner

Unit 4: Retirement of a Partner

Unit 5: Death of a Partner

Chapter 9: Financial Statements of Not-for-Profit Organizations

Chapter 10: Company Accounts

Unit 1: Introduction to Company Accounts

Unit 2: Issue, Forfeiture and Re-Issue of Shares

Unit 3: Issue of Debentures

Chapter 11: Basic Accounting Ratios

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