Accounting Process [CA (Chartered Accountant) Foundation Principles of Accounting]: Questions 22 - 25 of 67
Choose Programs:
🎯 408 MCQs (& PYQs) with Full Explanations (2024-2025 Exam)
Rs. 300.00 -OR-
3 Year Validity (Multiple Devices)
CoverageDetailsSample Explanation
Help me Choose & Register (Watch Video) Already Subscribed?
Question 22
Question MCQ▾
Which of these statement (s) are correct about contingent assets?
Choices
Choice (4) | Response | |
---|---|---|
a. | The term contingent is used when the outcome of a condition is uncertain | |
b. | A legal case of compensation whose judgment will be declared after the balance sheet date is an example | |
c. | When the term contingent is used as a prefix to asset it means the asset is a possible asset to the enterprise | |
d. | All a., b. and c. are correct |
Question 23
Question MCQ▾
Which of these are the limitations of trial balance?
Choices
Choice (4) | Response | |
---|---|---|
a. | Error of omission | |
b. | Compensating errors | |
c. | Error of commission | |
d. | All a., b. and c. are correct |
Question 24
Question MCQ▾
What specific entries are typically recorded in a journal proper?
Choices
Choice (4) | Response | |
---|---|---|
a. | Rectification entries AND Opening entries | |
b. | Transfer entries | |
c. | Closing entries | |
d. | All a., b. and c. are correct |
Question 25
Question MCQ▾
When the errors are located in the next accounting year, what are the steps taken for their rectification?
Choices
Choice (4) | Response | |
---|---|---|
a. | In case of double sided effect, there is no change in the treatment of rectifying the error | |
b. | Profit and loss appropriation account substitutes the nominal accounts in the rectification entry | |
c. | Errors relating to real and personal accounts will pass through the relevant account to know the exact position of such accounts | |
d. | All a., b. and c. are correct |