Common Proficiency Test (CPT) Exam Preparation

CPT Exam is held twice a year in the month of June and December conducted by ICAI. The *CPT Exam *would consist of 4 Papers scheduled to be conducted in 2 Sessions of 2 Papers1.Fundamentals of Accounting2.General Economics3.Mercantile …

CPT Exam is held twice a year in the month of June and December conducted by ICAI.


The CPT Exam would consist of 4 Papers scheduled to be conducted in 2 Sessions of 2 Papers

1.Fundamentals of Accounting

2.General Economics

3.Mercantile Laws

4.Quantitative Aptitude


Exam dates -

CPT exams are held in June and December in paper pencil mode. On-line CPT exams are also conducted periodically.


Exemption -

With effect from 3rd Aug 2012, CPT is exempted for the Graduates, Post Graduates and the students having equivalent degrees. Commerce graduates with 55% and other graduates with 60% can take direct admission for IPCC.


I hope you are preparing well for CPT exam 👏

If not, start early so that you don't have to regret later !!


Through this thread, motive is to build upon concepts required in CPT exam through collaborative study... plz share and gain from others..


Happy studying

👍


a CPT aspirant..

Q. 1 The objectives of accounting are


a.

Determining the solvency position of a business


b.

Ascertaining financial position of the business

c.

Ascertaining profit or loss of the business

d.

All of above


Q. 2

What is accounting?

a.

Accounting is the art of recording, classifying and summarising in a significant manner and in terms of money , transaction and events which are in part, at least, of a financial character, and interpreting the result thereof.

b.

The process of identifying, measuring and communicating economic information to permit informed judgement and decision by the users of accounts.

c.

The process of recording, classifying, summarising, analysing and interpreting the financial transactions and communicating the results thereof to the persons interested in such information.

d.

All of the above


Ques.

Out of following which purpose accounting do not serve?

Options

a.

Information about financial position of business

b.

Solvency position of business

c.

Defining the types of transactions a business may enter into

d.

Communicating information to users



Ques.

Rs 35,000 paid as salaries to worker is

Options

a.

An event

b.

A transaction

c.

An action

d.

Both a) and b)


Ques.

What is the basic requirement for starting of accounting ?

Options

a.

Company

b.

Transaction

c.

Transaction or Event

d.

Transaction or Cash Flow


Ques.

Which of the following is not a branch(sub field) of accounting?

Options

a.

Book Keeping

b.

Cost Accounting

c.

Human Resource Accounting

d.

Management Accounting

What is Management Accounting

Options

a.

Reporting of the financial position and performance of a firm through financial statements issued to users on a periodic basis.

b.

The process of identifying, quantifying and reporting investments made in management and human resources of an organization

c.

The process of preparing reports and accounts that provide relevant and timely financial and business information to a company's managers

d.

All of the above

Ques.

On 5th April 2013 Suresh purchased furniture and fittings from Mukesh for Rs 1,93,000. This is


Options

a.

A transaction as well as an event

b.

An event

c.

A transaction

d.

None of the above

Ques.

Payment towards whitewash of Building wrongly debted to Building account , which type of error is this

Options

a.

Error of principle

b.

Error of omission

c.

Error of commission

d.

Compensating errors


Ques.

Purchases book records contains:

Options

a.

All cash purchases

b.

All credit purchases of goods & assets

c.

All Credit purchases of goods in trade only.

d.

None of the above



Ques..

The owner of the consignment stock is________

Options

a.

Consignor

b.

Debtors

c.

Consignee

d.

None


The owner of the consignment stock is________

Options

a.

Consignor

b.

Debtors

c.

Consignee

d.

None

Q. 20

Payment towards whitewash of Building wrongly debted to Building account , which type of error is this

Options

a.

Error of principle

b.

Error of omission

c.

Error of commission

d.

Compensating errors

Ques -

At the time of death of a partner, firm gets ________ from the insurance company against the Joint Life Policy taken jointly for all the partners

Options

a.

Policy Amount

b.

Surrender Value

c.

Policy amount or surrender value which ever is higher

d.

Policy amount or surrender value which ever is lower




Q. 38

Bills Payable A/c is shown in the balance sheet under the head ______

Options

a.

Current Assets

b.

Provisions

c.

Reserve and Surplus

d.

Current Liability



Ques.

Provision for discount on debtors is calculated on the amount of debtors.

Options

a.

Before deducting provision for doubtful debts.

b.

After deducting provision for doubtful debts.

c.

Before deducting actual debts and provision for doubtful debts.

d.

After adding actual bad and doubtful debts.


Ques.

If cost of goods sold is Rs.80,700, Opening stock Rs.5,800 and Closing stock Rs.6,000. Then the amount of purchase will be

Options

a.

Rs.80,500

b.

Rs.74,900

c.

Rs.74,700

d.

Rs.80,900



Ques..

X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted withbanker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited by

Options

a.

Rs 19900

b.

Rs 20100

c.

Rs 20000

d.

Rs 19800




Ques..

If the balance as per cash book is the starting point in the preparation of the bank reconciliation statement, cash of Rs 500 deposited directly by the customer would be

Options

a.

Added

b.

Deducted

c.

No adjustment required

d.

Subtracted

Ques..

A purchased goods for Rs 20,00,000 and sold 3/4th of the goods at Rs 18,00,000. He incurred selling expenses amounting to Rs 1,00,000. He calculated profit at Rs 200,000. Which accounting concept is implicit in the calculation of profit by A?

Options

a.

Periodicity

b.

Comparability

c.

Conservatism

d

Matching.

I am a CA by profession and want to support CA Aspirant especially CPT students ( The first step towards CA Preparation)

Low value items like stationery item such as calculators, hole punches, pencils, etc., are not shown on the books as fixed assets. What accounting concept is this practice based on?

Options

a.

Accrual

b.

Conservatism

c.

Materiality

d.

Cost



Which out of these is not a fundamental accounting assumption.

Options

a.

Going concern

b.

Consistency

c.

Materiality

d.

Accrual

Maruti Suzuki manufactures and sells 500 Ritz in 2012 and receives the payment in the next accounting period i.e., in 2013. The company would record the revenue in the period in which

Options

a.

Cash is collected

b.

Sale is made

c.

Products are manufactured

d.

Cars are despatched





The primary qualitative characteristics of financial statements include:

Options

a.

Relevance and Reliability

b.

Relevance and Comparability

c.

Reliability and Understandability

d.

Understandability and Comparability


According to money measurement concept, in which currency transactions should be recorded in the books of account

Options

a.

In the currency set by the ministry of finance

b.

In the ruling currency of the country in which the books of accounts are prepared

c.

In the ruling currency of the country in which transaction takes place

d.

In the currency set by the government





Out of following which one is not a limitation of Accounting Standards

Options

a.

There may be a inclination towards rigidity

b.

Statutes can override the Accounting Standards

c.

Accounting Standards can eliminate choices between two different accounting treatment

d.

Accounting Standards do not necessarily eliminate choices between two different accounting treatment


Written policy documents issued by expert accounting body or by government or other regulatory body covering the aspects of recognition, treatment, measurement, presentation and disclosure of accounting transactions and events in financial statements are known as:

Options

a.

Fundamental accounting assumptions

b.

Accounting framework

c.

Accounting Standards

d.

Accounting Policy



A company may change its accounting policy once selected

Options

a.

False

b.

True


Loss is an item under?

Options

a.

Revenue

b.

Expense

c.

Asset

d.

Owner's capital item