CA Exam Prep
The Negotiable Instruments Act, 1881 Question 1.Define a Bill of Exchange. In what respect does ¡t differ from a cheque. (May 1998, 6 marks)ORPoint out the differences between a Cheque” and a “Bill of Exchange” under the Negotiable Instruments Act, 1881. (May 2011, 8 marks)Apswer:According to Section 5 of the Negotiable Instruments Act, 1881, a […]
Companies Act, 2013 – CA Foundation Business Law Study Material Question 1.What is meant by the lifting of the corporate veil? What are the instances in which the corporate veil may be lifted?ORThere are cases where company law disregards the principle of corporate personality or the principle that the company is a legal entity distinct […]
Limited Liability Partnership Act, 2008 – CA Foundation Business Law Study Material Question 1.What is meant by Limited Liability Partnership? What are its salient features/characteristics?Answer:An LLP is a new form of legal business entity with limited liability. It is a separate legal entity where LLP itself is liable to the third parties up to the […]
General Nature of Partnership – CA Foundation Business Law Study Material Question 1.Define Partnership. Discuss the essential elements of Partnership.Answer:Section 4 of the Indian Partnership Act, 1932, lays down that “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them […]
Inventory Valuation – CA Foundation Accounts Question 1.Periodic inventory systemAnswer:Periodic/Physical inventory system No records of inventory are maintained. Inventory is ascertained by physical counting at the end of the year and then valued. It is simple and commonly followed by small organisations. Unless otherwise specified, we can always assume that inventory/closing stock for […]
Accounting Process (Journal, Ledger, Trial Balance, Cash Book, Subsidiary Books) Question 1.Double Entry System.Answer:Double Entry System: This system was invented by an Italian merchant named Fra Luco Pacioli in 1494 A.D. According to this system, every transaction has got a two-fold aspect (dual aspect), i.e. one party giving the benefit and the other receiving the […]
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 […]