ca foundation notes
Accounting Standards – CA Foundation Accounts Question 1.Need of Accounting StandardsAnswer:Need of Accounting Standards: Accounts gives information to various groups. The financial statement can serve the interest of different interest groups only if there is uniformity and full disclosure of relevant information. There are various alternatives regarding accounting treatment and valuation norms which may be […]
Accounting as a Measurement Discipline-Valuation Principles, Accounting Estimates Question 1.Historical CostAnswer:Historical Cost: It means acquisition price. According to this base, assets are recorded at an amount of cash or cash equivalent paid or the fair value of consideration given at the time of acquisition. Liabilities are recorded at the amount of proceeds received in exchange […]
Accounting Policies – CA Foundation Accounts Question 1.What do you mean by Accounting policies? What are the basis of their selection? What are the different areas in which different accounting policies are possible?Answer:Meaning of Accounting Policy:→ The accounting policies refers to the specific accounting principles and the methods of applying those principles → Adopted by […]
Contingent Assets and Contingent Liabilities – CA Foundation Accounts Question 1.Contingent liability.Answer:Contingent liability:(a) A contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise. Possible […]
Capital and Revenue Expenditure – CA Foundation Accounts Question 1.Capital ExpenditureAnswer:Capital Expenditure: Any amount spent by actual payment or for which a liability is incurred is known as an expenditure. Capital Expenditure is that expenditure which results in the acquisition of an asset (tangible or intangible) which can be later sold and converted into cash […]
Accounting Concepts, Principles and Conventions – CA Foundation Accounts Study Material Question 1.What are Accounting Concepts, Principles & Conventions?Answer:Usually, accounting theories are expressed (referred) as Postulates, Concepts, Principles, Doctrines, Axioms, Rules, Standard, Assumptions, Canon etc. These are basic assumptions & norms on which the whole system of accounting is developed. These gives the basic structure […]
Meaning and Scope of Accounting – CA Foundation Accounts Study Material Question 1.What do you mean by Accounting? Give its definition.Answer:According to AICPA, “Accounting” is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and […]
Business Cycles CA Foundation MCQ Economics Chapter 5 1. The term business cycle refers to _________.(a) The ups and downs in production of commodities.(b) The fluctuating levels of economic activity over a period of time.(c) Decline in economic activities over prolonged period of time.(d) Increasing unemployment rate and diminishing rate of savings.Answer:(b) The fluctuating levels […]
Price Determination in Different Markets CA Foundation MCQ Economics Chapter 5 1. In Economics, the term ‘market’ refers to a:(a) place where buyer and seller bargain a product or service for a price(b) place where buyer does not bargain(c) place where seller does not bargain(d) none of the aboveAnswer:(a) place where buyer and seller bargain […]
Theory of Production and Cost CA Foundation MCQ Economics Chapter 3 1. What is Production is Economics:(a) Creating/Addition of Utility(b) Production of food grains(c) Creation of services(d) Manufacturing of goodsAnswer:(a) Creating/Addition of Utility 2. Which of the following is considered as production in economics?(a) Helping a blind person in crossing the road(b) Group dance […]