FOUNDATION EXAMINATION SET 1
MODEL QUESTION PAPER TERM – JUNE 2023
PAPER - 2
FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING
Time Allowed: 1 Hour Full Marks: 100
Answer all questions. Each question carries 2 marks.
1. The main Purpose of Financial Accounting is?
(a) To Provide financial information to shareholders О
(b) To maintain Balance Sheet O
(c) To minimize taxes O
(d) To keep track of liabilities O
2. Trial Balance is used to check the accuracy of _________________.
(a) Balance Sheet balances О
(b) Ledger Accounts balances O
(c) Cash Flow Statement balances O
(d) Income Statement balances O
3. Money spent ₹ 12,000 as travelling expenses of the directors on trips abroad
for purchase of capital assets is ____________________.
(a) Capital Expenditure О
(b) Revenue Expenditure O
(c) Deferred Revenue Expenditures O
(d) None of the above O
4. Which of these errors affect two or more accounts ____________________.
(a) Errors of complete omission О
(b) Errors of principle O
(c) Errors of posting to wrong account O
(d) All the three O
5. Purchase price of machine ₹8,90,000, freight and cartage ₹7,000, installation
charges ₹30,000, Insurance charges ₹20000, residual value is ₹40,000,
estimated useful life 5 years. Calculate the amount of annual depreciation under
straight line method?
(a) ₹ 1,77,400 О
(b) ₹ 1,81,400 O
(c) ₹ 1,97,400 O
(d) ₹ 1,77,900 O
1
Directorate of Studies, The Institute of Cost Accountants of India
MODEL QUESTION PAPER TERM – JUNE 2023
PAPER - 2
FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING
Time Allowed: 1 Hour Full Marks: 100
Answer all questions. Each question carries 2 marks.
1. The main Purpose of Financial Accounting is?
(a) To Provide financial information to shareholders О
(b) To maintain Balance Sheet O
(c) To minimize taxes O
(d) To keep track of liabilities O
2. Trial Balance is used to check the accuracy of _________________.
(a) Balance Sheet balances О
(b) Ledger Accounts balances O
(c) Cash Flow Statement balances O
(d) Income Statement balances O
3. Money spent ₹ 12,000 as travelling expenses of the directors on trips abroad
for purchase of capital assets is ____________________.
(a) Capital Expenditure О
(b) Revenue Expenditure O
(c) Deferred Revenue Expenditures O
(d) None of the above O
4. Which of these errors affect two or more accounts ____________________.
(a) Errors of complete omission О
(b) Errors of principle O
(c) Errors of posting to wrong account O
(d) All the three O
5. Purchase price of machine ₹8,90,000, freight and cartage ₹7,000, installation
charges ₹30,000, Insurance charges ₹20000, residual value is ₹40,000,
estimated useful life 5 years. Calculate the amount of annual depreciation under
straight line method?
(a) ₹ 1,77,400 О
(b) ₹ 1,81,400 O
(c) ₹ 1,97,400 O
(d) ₹ 1,77,900 O
1
Directorate of Studies, The Institute of Cost Accountants of India
