Start learning →

CA Foundation Trial Balance and Rectification of Errors — practice questions

Explore 5 free Trial Balance and Rectification of Errors questions in CA Foundation Accountancy. Open each question or exercise to read its content, reference answers and available explanation.

Practise Trial Balance and Rectification of Errors with Quill →

Trial Balance and Rectification of Errors questions and exercises with answers

Showing questions 1–5 of 5.

The concept that treats the business as separate from its owner is theRead the answer and worked solution →According to the going-concern concept, a business is assumed toRead the answer and worked solution →Recording only transactions that can be expressed in money terms reflects theRead the answer and worked solution →'Anticipate no profit but provide for all possible losses' expresses the convention ofRead the answer and worked solution →Closing stock is valued at cost or net realisable value, whichever is lower. This follows the principle ofRead the answer and worked solution →

Worked practice questions

The concept that treats the business as separate from its owner is the

  1. going concern concept
  2. money measurement concept
  3. business entity concept
  4. dual aspect concept
Show answer and solution

Correct answer: C. business entity concept

The business entity concept treats the business and its owner as distinct the owner's personal transactions are kept out of the business books.

Open this question →

According to the going-concern concept, a business is assumed to

  1. sell all assets immediately
  2. continue operating for the foreseeable future
  3. close at the end of the year
  4. have unlimited capital
Show answer and solution

Correct answer: B. continue operating for the foreseeable future

Going concern assumes the enterprise will continue indefinitely, which justifies recording assets at cost and charging depreciation over their life.

Open this question →

Recording only transactions that can be expressed in money terms reflects the

  1. money measurement concept
  2. matching concept
  3. prudence concept
  4. accrual concept
Show answer and solution

Correct answer: A. money measurement concept

The money measurement concept records only monetary transactions non-monetary facts (e.g. staff morale) are excluded.

Open this question →

How to practise

  1. Choose a Trial Balance and Rectification of Errors 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 Trial Balance and Rectification of Errors practice for CA Foundation. Read explanations as you go. No signup form needed to start.

Practise Trial Balance and Rectification of Errors →

More Accountancy topics

Partnership AccountsIntroduction to Accounting & Recording TransactionsAccounting for Partnership Firms: Retirement and Death of a PartnerCompany AccountsIndian Partnership Act 1932Analysis of Financial StatementsReconstitution AdmissionBills of Exchange