CA Foundation Accounting Practice Questions - ICAI CA Foundation Paper 1 Accounting Exam - CA Foundation Accounting Practice Questions - ICAI CA Foundation Paper 1 Accounting Exam

Question 1

According to the accounting concept that a business is treated as separate and distinct from its owners, how should a proprietor's personal car purchased from business funds for private use be recorded?

As a fixed asset of the business As a current liability of the business As a business expense in the profit and loss account As drawings reducing the owner's capital

Correct Answer:

As drawings reducing the owner's capital

Question 2

The accounting convention that requires anticipating all possible losses but not anticipating profits is known as:

Consistency Materiality Conservatism (prudence) Full disclosure

Correct Answer:

Conservatism (prudence)

Question 3

Expenditure incurred to acquire a new delivery van for a trading business is classified as:

Revenue expenditure A contingent liability Deferred revenue expenditure Capital expenditure

Correct Answer:

Capital expenditure

Question 4

Under the accrual concept, rent of 12,000 paid for the year but covering 3 months of the next accounting period should be treated in the current year as:

Full 12,000 expense with no adjustment 3,000 expense and 9,000 prepaid expense 12,000 expense and 3,000 outstanding liability 9,000 expense and 3,000 prepaid expense (asset)

Correct Answer:

9,000 expense and 3,000 prepaid expense (asset)

Question 5

Which qualitative characteristic of financial statements requires that information be free from material error and bias and faithfully represent transactions?

Reliability Comparability Understandability Timeliness

Correct Answer:

Reliability

Question 1

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About this Exam

Prepare with the CA Foundation Accounting Practice Questions - ICAI CA Foundation Paper 1 Accounting Exam practice quiz. This question bank includes 100 questions covering account, profit, balance, book, and accounting. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CA Foundation Accounting Practice Questions - ICAI CA Foundation Paper 1 Accounting Exam

This practice set contains 100 questions from the matching question bank and focuses on account, profit, balance, book, and accounting. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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CA Foundation Accounting Practice Questions - ICAI CA Foundation Paper 1 Accounting Exam

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