CA Foundation Financial Accounts MCQ

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

2. Accounting Standards in India are issued by

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

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

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

6. 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?

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

8. 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?

9. 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

10. Financial statements are part of

11. Decrease in the amount of trade payables results in

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

13. A change in accounting policy is justified

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

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

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

17. Financial statements do not consider

18. Selection of an inappropriate accounting policy decision may

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

20. Accounting policies refer to specific accounting

21. 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

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

23. All of the following are functions of Accounting except

24. Book-keeping is mainly concerned with

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

26. Users of accounting information include

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

28. Two primary qualitative characteristics of financial statements are

29. Accounting Standards

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

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