CA Foundation Accounts - All Chapters CA Foundation - Principles and Practice of Accounting - All Chapters Consolidated Quiz 1 / 10 Consider the following data pertaining to Alpha Ltd.:ParticularsRs.Cost of machinery purchased on 1st April, 201610,00,000Installation charges1,00,000Market value as on 31st March, 201712,00,000While finalizing the annual accounts, if the company values the machinery at Rs. 12,00,000. Which of the following concepts is violated by the Alpha Ltd.? Cost. Matching. Accrual. 2 / 10 PQ draws a bill on XY for Rs. 130,000 on 1.1.2017. X accepts the same on 4.1.2017 for period of 3 months after date. What will be the maturity date of the bill: 4.4.2017 3.4.2017 7.4.2017 3 / 10 If the equipment account has a balance of Rs. 22,50,000 and the accumulated depreciation account has a balance of Rs. 14,00,000, the book value of the equipment is Rs. 36,50,000 Rs. 8,50,000 Rs. 14,00,000 4 / 10 Two primary qualitative characteristics of financial statements are Understandability and materiality. Relevance and reliability. Neutrality and understandability. 5 / 10 While finalizing the current year’s profit, the company realized that there was an error in the valuation of closing Inventory of the previous year. In the previous year, closing Inventory was valued more by Rs. 50,000. As a result Previous year’s profit is overstated and current year’s profit is also overstated Previous year’s profit is overstated and current year’s profit is understated Previous year’s profit is understated and current year’s profit is also understated 6 / 10 In the financial statements, contingent liability is Recognised. Not recognised. Adjusted. 7 / 10 Purchase of office furniture Rs. 1,200 has been debited to General Expense Account. It is: A clerical error. An error of principle. An error of omission. 8 / 10 A Ltd. has a Rs. 35,000 account receivable from Mohan. On January 20, Mohan makes a partial payment of Rs. 21,000 to A Ltd. The journal entry made on January 20 by A Ltd. to record this transaction includes: A credit to the cash received account of Rs. 21,000. A credit to the Accounts receivable account of Rs. 21,000. A debit to the cash account of Rs. 14,000. 9 / 10 If a purchase return of Rs. 1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of the Trial balance would show the debit side to be Rs. 1,000 more than the credit. Trial balance would show the credit side to be Rs. 1,000 more than the debit. The debit side of the trial balance will be Rs. 2,000 more than the credit side. 10 / 10 Financial statements are part of Accounting. Book-keeping. Management Accounting. Your score is 0% Restart quiz Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.