Accounts from Incomplete Records – MCQs

1. What is another name for the Single Entry System?
A. Double Entry System
B. Incomplete Accounting System
C. Cash System
D. Accrual System
Answer: B. Incomplete Accounting System

2. Under the Single Entry System, which of the following accounts are generally maintained?
A. All accounts
B. Only Personal and Real accounts
C. Only Personal and Cash accounts
D. Only Nominal accounts
Answer: C. Only Personal and Cash accounts

3. Statement of Affairs resembles which of the following?
A. Cash Flow Statement
B. Balance Sheet
C. Trial Balance
D. Trading Account
Answer: B. Balance Sheet

4. The difference between assets and liabilities in the Statement of Affairs is called:
A. Capital
B. Net Profit
C. Surplus
D. Deficit
Answer: A. Capital

5. How is profit ascertained under the Single Entry System?
A. By Trading Account
B. By Income and Expenditure Account
C. By Capital Comparison Method
D. By Trial Balance
Answer: C. By Capital Comparison Method

6. Which method is used to find out opening capital under single entry?
A. Receipts and Payments Account
B. Statement of Affairs
C. Cash Book
D. Income and Expenditure
Answer: B. Statement of Affairs

7. The formula for calculating profit under the Statement of Affairs method is:
A. Closing Capital + Drawings – Additional Capital – Opening Capital
B. Closing Capital – Drawings + Additional Capital – Opening Capital
C. Closing Capital – Opening Capital + Drawings – Additional Capital
D. Closing Capital – Opening Capital – Drawings + Additional Capital
Answer: A. Closing Capital + Drawings – Additional Capital – Opening Capital

8. Under Single Entry System, depreciation is:
A. Ignored
B. Properly recorded
C. Charged only on fixed assets
D. Not charged at all
Answer: A. Ignored

9. When opening capital is not given, it is ascertained by preparing:
A. Trading Account
B. Statement of Affairs
C. Income Statement
D. Cash Flow Statement
Answer: B. Statement of Affairs

10. Which of the following statements is true about the Single Entry System?
A. It provides a complete picture of financial position
B. It is suitable for large businesses
C. It is based on double entry principles
D. It does not record all transactions
Answer: D. It does not record all transactions

Would you like 30 more MCQs with answers or a PDF/Word format for easy distribution?

Here are 40 more MCQs from Chapter 9: Accounts from Incomplete Records for CA Foundation students:

Accounts from Incomplete Records – MCQs (Part 2)

11. Which method is most suitable to calculate profit under Single Entry?
A. Cash Flow Method
B. Capital Comparison Method
C. Profit and Loss Account Method
D. Receipts and Payments Method
Answer: B. Capital Comparison Method

12. Single Entry System mainly ignores:
A. Real accounts
B. Personal accounts
C. Nominal accounts
D. Cash account
Answer: C. Nominal accounts

13. Incomplete records are generally kept by:
A. Government firms
B. Large-scale companies
C. Small traders
D. Public limited companies
Answer: C. Small traders

14. Which of the following is not prepared under Single Entry?
A. Statement of Affairs
B. Cash Book
C. Ledger
D. Trial Balance
Answer: D. Trial Balance

15. Under Incomplete Records, opening capital is calculated using:
A. Trading Account
B. Cash Book
C. Statement of Affairs
D. Income and Expenditure Account
Answer: C. Statement of Affairs

16. The net profit calculated from incomplete records is:
A. Exact
B. Always overstated
C. Only an estimate
D. Based on actual transactions
Answer: C. Only an estimate

17. Cash Book under single entry is generally:
A. A double column
B. A three-column
C. A single column
D. Not maintained
Answer: C. A single column

18. Debtors and Creditors balances are generally taken from:
A. Ledger
B. Statement of Affairs
C. Cash Book
D. Memorandum books
Answer: B. Statement of Affairs

19. The Single Entry System does not provide:
A. Debtors balance
B. Complete financial statements
C. Cash balance
D. Creditors list
Answer: B. Complete financial statements

20. Which of the following is used to convert single entry into double entry?
A. Conversion method
B. Statement of Affairs method
C. Trial balance method
D. Statement of Changes method
Answer: A. Conversion method

21. Single Entry System is:
A. Scientific
B. Incomplete
C. Legal
D. Statutory
Answer: B. Incomplete

22. Profit under capital comparison is calculated after adjusting:
A. Drawings
B. Additional capital
C. Both A and B
D. None
Answer: C. Both A and B

23. Closing capital is usually derived from:
A. Cash Book
B. Ledger
C. Statement of Affairs
D. Trading Account
Answer: C. Statement of Affairs

24. Statement of Affairs is different from Balance Sheet because:
A. It uses only nominal accounts
B. It is based on estimated figures
C. It includes profit figures
D. It uses trial balance
Answer: B. It is based on estimated figures

25. Under incomplete records, depreciation is:
A. Adjusted every year
B. Ignored
C. Estimated
D. Not recorded
Answer: B. Ignored

26. Which of the following is not a limitation of Single Entry?
A. Incomplete information
B. Accurate profit calculation
C. Difficulty in detecting fraud
D. No check on arithmetic accuracy
Answer: B. Accurate profit calculation

27. The main objective of the Statement of Affairs is to:
A. Prepare trial balance
B. Find missing items
C. Find capital
D. Calculate liabilities
Answer: C. Find capital

28. Drawings by the proprietor should be:
A. Added to closing capital
B. Deducted from closing capital
C. Added to profit
D. Deducted from profit
Answer: A. Added to closing capital

29. Additional capital introduced during the year is:
A. Deducted from closing capital
B. Added to drawings
C. Ignored
D. Deducted while calculating profit
Answer: D. Deducted while calculating profit

30. In Single Entry System, cash received from debtors is recorded in:
A. Debtors ledger
B. Creditors account
C. Cash Book
D. Profit and Loss Account
Answer: C. Cash Book

31. Which of the following errors can be detected using Single Entry System?
A. Errors of omission
B. Errors of principle
C. Arithmetic errors
D. None
Answer: D. None

32. Opening and closing capital are found using:
A. Ledger accounts
B. Statement of Affairs
C. Trial Balance
D. Journal
Answer: B. Statement of Affairs

33. Which item is not required to compute profit under Single Entry?
A. Opening Capital
B. Closing Capital
C. Debtors
D. Drawings
Answer: C. Debtors

34. Business using Single Entry System cannot prepare:
A. Cash Book
B. Trial Balance
C. Statement of Affairs
D. Receipts & Payments
Answer: B. Trial Balance

35. Which of the following is an advantage of Single Entry?
A. Less accurate
B. Less expensive
C. Comprehensive
D. Detects frauds easily
Answer: B. Less expensive

36. A business maintains only Cash and Personal Accounts. This is called:
A. Cash System
B. Memorandum Book System
C. Double Entry
D. Single Entry
Answer: D. Single Entry

37. In Statement of Affairs, capital is calculated as:
A. Liabilities – Assets
B. Assets – Liabilities
C. Debtors + Cash
D. Sales – Expenses
Answer: B. Assets – Liabilities

38. Conversion method is used to:
A. Prepare journal
B. Reconstruct financial records
C. Calculate depreciation
D. Match trial balance
Answer: B. Reconstruct financial records

39. Accounts from incomplete records are also called:
A. Systematic accounts
B. Deficient accounts
C. Statement-based accounts
D. Single Entry accounts
Answer: D. Single Entry accounts

40. The person who maintains incomplete records is usually a:
A. Professional accountant
B. Bookkeeper
C. Trader or small businessman
D. Auditor
Answer: C. Trader or small businessman

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