CA CPT Examination

Fundamentals of Accounting

Level of Knowledge : Basic knowledge

Objective :

6. Income tax demand disputed will be _____

a) Contingent liability
b) Current Liability
c) Possible Asset
d) Possible Liability

7. Goods worth Rs.100 bought from Narayan have remained unrecorded. What will be the effect of the error on trial balance.

a) No effect
b) Trial Balance Credit total will be short by Rs.100
c) Trial Balance Debit total will be short by Rs.100
d) Trial Balance Credit total will be increased by Rs.200

8. Credit balance in the ledger will be either _____ or ____

a) Assets, Revenue
b) Expenses, Assets
c) Liabilities, Revenue
d) Expenses, Liabilities

9. Which method of depreciation is approved as per the income tax rules?

a) Sinking fund method
b) Written Down Value Method
c) Annuity Method
d) None of the above

10. Capital A/c is a _______ A/c.

a) Personal
b) Real
c) Nominal
d) None