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Company Accounts What is the minimum number of members required to form a private company?a) 1b) 2c) 7d) 10Answer: b) 2 What is the minimum number of members required to form a public company?a) 2b) 7c) 10d) 50Answer: b) 7 Which document contains the fundamental rules of a company?a) Prospectusb) Articles of Associationc) Memorandum of […]
Partnership and LLP Accounts Which document is created to outline the rights and duties of partners?a) Memorandum of Associationb) Articles of Associationc) Partnership Deed d) LLP Agreement In the absence of a partnership deed, partners share profits and losses:a) Equally b) In capital ratioc) Based on aged) Based on experience Which account is not prepared […]
Accounts from Incomplete Records – MCQs 1. What is another name for the Single Entry System?A. Double Entry SystemB. Incomplete Accounting SystemC. Cash SystemD. Accrual SystemAnswer: B. Incomplete Accounting System 2. Under the Single Entry System, which of the following accounts are generally maintained?A. All accountsB. Only Personal and Real accountsC. Only Personal and Cash […]
Financial Statements and Non-Profit Organisations: MCQs 1. What is the primary objective of preparing financial statements for a non-profit organisation? A) To determine net profitB) To find capital employedC) To show financial position and performanceD) To calculate depreciationAnswer: C – The primary objective is to show the financial position and performance. 2. The financial statements […]
Preparation of Final Accounts & Sole Proprietor 1. Final accounts include which of the following?A. Trial BalanceB. LedgerC. Trading and Profit & Loss Account and Balance SheetD. Cash BookAnswer: C 2. The main objective of preparing final accounts is to find out:A. Net SalesB. Financial Position and Profit or LossC. Cash in handD. Number of […]
Bills of Exchange and Promissory Notes – CA Foundation Q1. A bill of exchange is drawn by the ___.a) Creditorb) Debtorc) Bankd) BuyerAnswer: a) Creditor Q2. Promissory Note is made by the ___.a) Payeeb) Drawerc) Debtord) EndorseeAnswer: c) Debtor Q3. The person to whom the bill is payable is known as ___.a) Drawerb) Draweec) Payeed) […]
Rectification of Errors – Questions & Answers Q1. What are accounting errors?A: Accounting errors are mistakes in recording, classifying, or summarizing financial transactions. They may be clerical or procedural in nature. Q2. What is the difference between an error of omission and an error of commission?A: Error of Omission: A transaction is completely or partially […]
Cash book Questions & Answers 1. What is a Cash Book? Answer:A Cash Book is a financial journal that records all cash receipts and payments, including bank transactions. It serves as both a journal and a ledger for cash transactions. 2. How many types of cash books are there? Answer:There are three types of cash […]
Subsidiary Books – MCQs Q1. Which of the following is not a subsidiary book?A. Purchase BookB. Sales BookC. Journal ProperD. Trial Balance Answer: D. Trial Balance Q2. Cash Book is a type of:A. LedgerB. Subsidiary BookC. Journal ProperD. Memorandum Book Answer: B. Subsidiary Book Q3. The purchase return book is used to record:A. All purchasesB. […]
Trial Balance – MCQs with Answers Q1. What is a trial balance?A. A statement showing balances of all ledger accountsB. A summary of cash transactionsC. A financial statementD. None of the above Answer: A Q2. A trial balance is prepared to:A. Prepare final accountsB. Detect arithmetic errorsC. Check the accuracy of ledger postingsD. All of the […]