Start learning →

CA Foundation Introduction to Accounting & Recording Transactions — practice questions

Explore 8 free Introduction to Accounting & Recording Transactions questions in CA Foundation Accountancy. Open each question or exercise to read its content, reference answers and available explanation.

Practise Introduction to Accounting & Recording Transactions with Quill →

Introduction to Accounting & Recording Transactions questions and exercises with answers

Showing questions 1–8 of 8.

Accounting Standards in India are issued by theRead the answer and worked solution →Revenue is recognised when it is earned, not when cash is received. This is theRead the answer and worked solution →The accounting equation isRead the answer and worked solution →A business introduces ₹50,000 cash as capital. The effect on the accounting equation isRead the answer and worked solution →The book of original entry in which transactions are first recorded is theRead the answer and worked solution →Under the modern rules, an increase in a liability is recorded as aRead the answer and worked solution →The process of transferring journal entries to individual accounts is calledRead the answer and worked solution →A source document that serves as evidence of a transaction and basis for recording is aRead the answer and worked solution →

Worked practice questions

Accounting Standards in India are issued by the

  1. RBI
  2. ICAI
  3. Ministry of Finance
  4. SEBI
Show answer and solution

Correct answer: B. ICAI

The Institute of Chartered Accountants of India (ICAI) issues Accounting Standards to bring uniformity to accounting practice.

Open this question →

Revenue is recognised when it is earned, not when cash is received. This is the

  1. conservatism
  2. realisation of cash
  3. accrual concept
  4. cash basis
Show answer and solution

Correct answer: C. accrual concept

The accrual concept recognises revenue when earned and expenses when incurred, regardless of cash flow timing.

Open this question →

The accounting equation is

  1. Assets = Liabilities + Capital
  2. Assets + Capital = Liabilities
  3. Capital = Assets + Liabilities
  4. Assets = Capital − Liabilities
Show answer and solution

Correct answer: A. Assets = Liabilities + Capital

Assets = Liabilities + Capital — the foundation of the dual-aspect (double-entry) system.

Open this question →

How to practise

  1. Choose a Introduction to Accounting & Recording Transactions question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

Put it into practice

Continue with Introduction to Accounting & Recording Transactions practice for CA Foundation. Read explanations as you go. No signup form needed to start.

Practise Introduction to Accounting & Recording Transactions →

More Accountancy topics

Partnership AccountsAccounting for Partnership Firms: Retirement and Death of a PartnerCompany AccountsIndian Partnership Act 1932Analysis of Financial StatementsReconstitution AdmissionBills of ExchangeTrial Balance and Rectification of Errors