CA CPT -sample Test- 1

20 Questions
CPT Quizzes & Trivia

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Questions and Answers
  • 1. 
    Which of the following is one of the basic accounting principle ?
    • A. 

      Profit Concern

    • B. 

      Going Concern

    • C. 

      Online concern

    • D. 

      Own concern

  • 2. 
    A change in accounting policy is justified
    • A. 

      To comply with accounting standard

    • B. 

      To ensure more appropriate presentation of the financial statement of the enterprise

    • C. 

      To comply with law

    • D. 

      All of the above

  • 3. 
    Which of the following should be considered while slecting and applying accounting policies.
    • A. 

      Consistency

    • B. 

      Going Concern

    • C. 

      Substance over form

    • D. 

      All of the above

  • 4. 
    Depreciation on assets is calculated as per Straight line method at rate specified in Companies Act 1956 - is an
    • A. 

      Accounting concept

    • B. 

      Accounting Standard

    • C. 

      Accounting convention

    • D. 

      None of the above

  • 5. 
    A bill has been drawn on 20.02.2008 payable after 90 days the due date of the bill will be
    • A. 

      20.05.2008

    • B. 

      24.05.2008

    • C. 

      23.05.2008

    • D. 

      22.05.2008

  • 6. 
    Material of Rs. 500 used in the installation of the machinery and wages paid for it amounting to Rs. 600 should be debited to
    • A. 

      Purchases account

    • B. 

      Machinery account

    • C. 

      Petty expenses account

    • D. 

      Material account

  • 7. 
    Carriage Inward is debited to
    • A. 

      Trading Account

    • B. 

      Profit & Loss Account

    • C. 

      P&L Appropriation Account

    • D. 

      None of the above

  • 8. 
    Amount spent, for the construction of temporary huts, which were necessary for construction of the factory and demolished when the factory was ready is a
    • A. 

      Capital Expenditure

    • B. 

      Revenue Expenditure

    • C. 

      Prepaid Expenditure

    • D. 

      Deferred Revenue Expenditure

  • 9. 
    Difference of totals of both debit and credit side of the trial balance is transferred to
    • A. 

      Difference Account

    • B. 

      Adjustment Account

    • C. 

      Suspense Account

    • D. 

      Profit & Loss Account

  • 10. 
    Identify correct statement
    • A. 

      Capital is equal to assets minus liabilities

    • B. 

      Capital is equal to assets plus liabilities

    • C. 

      Assets are equal to liabilities minus capital

    • D. 

      Liabilities is equal to capital plus assets

  • 11. 
    All of the following have debit balance except one. That account is
    • A. 

      Advances Given

    • B. 

      Outstanding Expenses

    • C. 

      Prepaid Expenses

    • D. 

      Deferred Revenue Expenses

  • 12. 
    Which of the statement is true wih reference to WDV method
    • A. 

      Dep amount remains constant

    • B. 

      Dep amount declines even if rate remains same

    • C. 

      Dep rate changes every year

    • D. 

      All of above

  • 13. 
    Closing balance of cash book is written as
    • A. 

      By balance b/d

    • B. 

      By balance c/d

    • C. 

      To balance b/d

    • D. 

      To balance c/d

  • 14. 
    • A. 

      Disclose the fact in financial statements by recognising liability

    • B. 

      Not disclose anything

    • C. 

      Disclose it as continegent liability

    • D. 

      Should put this matter in Board of directors meeting

  • 15. 
    • A. 

      Purchase A/c debit and Suspense A/c Credit

    • B. 

      Suspense A/c Debit and Purchase A/c Credit

    • C. 

      Overcasting of Purchase book Debit and Purchase A/c Credit

    • D. 

      Rectification A/c Debit and Purchase Account Credit

  • 16. 
    A credit sale Rs. 1000/- was recorded in purchase day book & credit purchase of Rs. 2000/- was entered in sales day book. Rectification entry will be
    • A. 

      Purchase Dr. 3000 To Sales 3000

    • B. 

      Purchase Dr. 1000 Sales Dr. 1000 To Sundry Drs. 1000 To Sundry Crs. 1000

    • C. 

      Sales Dr. 3000 To Purchase 3000

    • D. 

      None of above

  • 17. 
    Difference in cash book & bank book may be due to
    • A. 

      Error of principle

    • B. 

      Error of vision

    • C. 

      Timing difference

    • D. 

      All of above

  • 18. 
    Insurance premium directly paid by bank will be
    • A. 

      Added to Balance as per cash book

    • B. 

      Added to Balance as per bank pass book

    • C. 

      Deducted from balance as per pass book

    • D. 

      Added to suspense account

  • 19. 
    Which of the following technique is used to value inventory not ordinarily interchangable
    • A. 

      Historical cost

    • B. 

      Specific identification method

    • C. 

      Both A & B

    • D. 

      None of the above

  • 20. 
    • A. 

      Increase in asset & decrease in owner's liability

    • B. 

      Increase in liability & decrease in owner's liability

    • C. 

      Decrease in liability & owner's liability

    • D. 

      Increase in assets & owner's liability