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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 […]
Ledgers – Questions and Answers Q1. What is a ledger?A1. A ledger is a principal book of accounts that contains all the accounts (personal, real, and nominal) where transactions are posted from the journal in a classified manner. Q2. Why is a ledger called the “book of final entry”?A2. The ledger is called the book […]
Basic Accounting Procedures – Journal Entries Q1. Journal is also called as:A) LedgerB) Book of original entryC) Trial BalanceD) Balance SheetAnswer: B) Book of original entry Q2. Which of the following transactions will be recorded in the journal?A) Opening balanceB) Closing stockC) Depreciation on machineryD) Trial balanceAnswer: C) Depreciation on machinery Q3. Which account is […]
CA Foundation – Business Economics: Indian Economy (MCQs) Which sector contributes the most to India’s GDP?A. AgricultureB. IndustryC. ServicesD. ManufacturingAnswer: C NITI Aayog replaced which institution?A. Finance CommissionB. Planning CommissionC. Reserve Bank of IndiaD. SEBIAnswer: B What does GDP stand for?A. Gross Domestic ProductB. General Domestic ProductC. Gross Development PlanD. Government Development PolicyAnswer: A Which […]
International Trade MCQs for CA Foundation Q1. What is the main purpose of international trade?a) To restrict importsb) To increase domestic production onlyc) To exchange goods and services across countriesd) To increase taxes on exports Answer: c) To exchange goods and services across countries Q2. Which theory explains that countries should specialize in producing goods […]