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CA Foundation Accounting Concepts — practice questions — page 3

Explore 98 free Accounting Concepts questions in CA Foundation Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Accounting Concepts questions and exercises with answers

Showing questions 61–90 of 98.

The convention of conservatism requires probable losses to beRead the answer and worked solution →Prudence in accounting follows the convention ofRead the answer and worked solution →The Accounting Standards Board was constituted in which year?Read the answer and worked solution →The ASB, which supervises Ind AS, is a committee underRead the answer and worked solution →NFRA recommends Ind AS to which body for notification?Read the answer and worked solution →Ind AS are named and numbered in the same way asRead the answer and worked solution →Ind AS 107 deals with disclosures aboutRead the answer and worked solution →Before adopting Ind AS, India followed which set of standards?Read the answer and worked solution →Once Ind AS is adopted, the company mayRead the answer and worked solution →Ind AS applied from 1 April 2016 to every company with net worth of at leastRead the answer and worked solution →Which body issues the International Financial Reporting Standards?Read the answer and worked solution →In the United Kingdom, accounting standards are set by theRead the answer and worked solution →All listed and grouped EU companies have had to use IFRS sinceRead the answer and worked solution →The late 1990s Asian crisis was partly blamed onRead the answer and worked solution →Money spent to buy or improve fixed assets such as buildings and equipment isRead the answer and worked solution →Which of these is normally a capital expenditure?Read the answer and worked solution →A firm buys a photocopier and then pays yearly for paper, toner and power. The yearly payments areRead the answer and worked solution →Money spent on a capital expenditure is recorded by adding it toRead the answer and worked solution →Capitalised costs are charged to profit over the asset's life throughRead the answer and worked solution →A property with a life beyond the tax year has its costRead the answer and worked solution →Capital expenditure appears in the cash flow statement underRead the answer and worked solution →Which of these is an operating expense?Read the answer and worked solution →Services received in March but paid for in April createRead the answer and worked solution →Accrued revenue appears on the balance sheet asRead the answer and worked solution →Compared with accruals, provisions involveRead the answer and worked solution →Each double-entry transaction is recorded withRead the answer and worked solution →The golden rule for real accounts is to debitRead the answer and worked solution →In a personal account, the person who gives a benefit isRead the answer and worked solution →Nominal accounts relate toRead the answer and worked solution →Accounts of tangible and intangible assets are calledRead the answer and worked solution →

Worked practice questions

The convention of conservatism requires probable losses to be

  1. recognised even if not yet incurred
  2. ignored until they actually occur
  3. set off against probable gains
  4. disclosed only when goods are sold
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Correct answer: A. recognised even if not yet incurred

Prudence means a loss is booked once it is probable, without waiting for it to happen.

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Prudence in accounting follows the convention of

  1. disclosure
  2. conservatism
  3. materiality
  4. periodicity
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Correct answer: B. conservatism

Prudence is described as the convention of conservatism, being timely and realistic.

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The Accounting Standards Board was constituted in which year?

  1. 1977
  2. 1987
  3. 1965
  4. 1995
Show answer and solution

Correct answer: A. 1977

The ASB was constituted as a body in 1977.

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