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Quick answer: A 50-question commerce mock for CA Foundation, CMA and B.Com: 18 Accounting, 17 Business Law and 15 Business Economics questions with a full answer key and explanations — 60 minutes, no negative marking.
Commerce Mock Test (September 9, 2026): 50 Questions for CA Foundation, CMA and B.Com
Direct answer: A 50-question commerce practice mock spanning Accounting (Q1–Q18), Business Law (Q19–Q35) and Business Economics (Q36–Q50), with answer key and explanations, designed for CA Foundation, CMA Foundation and B.Com semester exams. Attempt in 60 minutes; +1 correct, no negative marking (foundation pattern).
Accounting (Q1–Q18)
- Q1. The double-entry system of bookkeeping is credited to:
(a) Luca Pacioli (b) Adam Smith (c) J.R. Batliboi (d) Henry Fayol - Q2. The accounting equation is:
(a) Assets = Liabilities + Capital (b) Capital = Assets + Liabilities (c) Liabilities = Assets + Capital (d) Assets = Capital − Liabilities - Q3. ‘Debit all expenses and losses’ is part of:
(a) The golden rules of accounting (b) The matching concept (c) The money measurement concept (d) GAAP disclosure rules - Q4. Purchase of a fixed asset on credit is first recorded in:
(a) Sales book (b) Purchase book (c) Journal proper (d) Cash book - Q5. Under the straight-line method, depreciation is:
(a) Higher in early years (b) Equal every year (c) Lower in early years (d) Based on output - Q6. The written-down value method charges depreciation on:
(a) Original cost (b) Book value (c) Market value (d) Replacement value - Q7. Goodwill is an example of:
(a) A current asset (b) An intangible fixed asset (c) A fictitious asset (d) A contingent liability - Q8. Which error is NOT disclosed by a trial balance?
(a) Error of complete omission (b) Error of casting (c) Error of carry forward (d) Posting to the wrong side - Q9. The suspense account is opened when:
(a) The trial balance disagrees (b) The cash book is closed (c) Final accounts are prepared (d) The business starts - Q10. Closing stock appearing in the trial balance is shown in:
(a) Trading account only (b) Profit and loss account only (c) Balance sheet only (as an asset) (d) Both trading account and balance sheet - Q11. Outstanding salary is shown in the balance sheet as:
(a) An asset (b) A liability (c) Capital (d) Contingent liability - Q12. Deferred revenue expenditure is:
(a) Revenue expense of the current year only (b) Heavy revenue expense benefited over multiple years (c) A capital receipt (d) A liability - Q13. In the books of a manufacturer, raw materials consumed appear in:
(a) Trading account (b) Profit and loss account (c) Manufacturing account (d) Balance sheet - Q14. Sales returns are deducted from:
(a) Purchases (b) Sales (c) Closing stock (d) Gross profit - Q15. Bank Reconciliation Statement reconciles bank balance as per cash book with:
(a) Pass book balance (b) Trial balance (c) Ledger totals (d) Petty cash book - Q16. In not-for-profit accounting, the surplus of income over expenditure goes to:
(a) Capital fund (b) Profit and loss account (c) General reserve only (d) Dividend - Q17. When a new partner is admitted, sacrificing ratio is computed for:
(a) Distribution of goodwill among old partners (b) The new partner’s capital (c) Revaluation of assets (d) Loan adjustments - Q18. On dissolution, assets are realised and the loss on realisation is borne:
(a) Equally by partners (b) In profit-sharing ratio (c) In capital ratio (d) By the溶解 solvent partner only
What Must You Know in Business Law? (Q19–Q35)
- Q19. The Indian Contract Act was enacted in:
(a) 1872 (b) 1881 (c) 1930 (d) 1932 - Q20. An agreement enforceable by law is a:
(a) Promise (b) Contract (c) Proposal (d) Obligation - Q21. A contract made under coercion is:
(a) Void ab initio (b) Voidable at the option of the aggrieved party (c) Illegal (d) Unenforceable forever - Q22. A contract with a minor is in India:
(a) Valid (b) Voidable (c) Void (d) Enforceable with interest - Q23. The doctrine of caveat emptor means:
(a) Let the seller beware (b) Let the buyer beware (c) Buyer is always right (d) Seller must disclose all - Q24. The Sale of Goods Act was enacted in:
(a) 1872 (b) 1930 (c) 1932 (d) 1956 - Q25. The maximum number of partners in a firm (per the Companies (Miscellaneous) Rules, 2014) is:
(a) 20 (b) 50 (c) 100 (d) No limit - Q26. The minimum number of members to form a private company under the Companies Act, 2013 is:
(a) 2 (b) 3 (c) 5 (d) 7 - Q27. The minimum number of members for a public company is:
(a) 2 (b) 5 (c) 7 (d) 10 - Q28. A partnership arises by:
(a) Status (b) Agreement (c) Operation of law (d) Inheritance - Q29. Under the Negotiable Instruments Act, 1881, a cheque is valid for presentment for:
(a) 1 month (b) 3 months (c) 6 months (d) 12 months - Q30. GST was introduced in India by which constitutional amendment?
(a) 100th (b) 101st (c) 102nd (d) 103rd - Q31. SEBI became a statutory body in:
(a) 1988 (b) 1992 (c) 1995 (d) 2000 - Q32. The ‘doctrine of indoor management’ protects:
(a) The company against outsiders (b) Outsiders dealing with the company in good faith (c) Directors only (d) Auditors - Q33. An ultra vires act of a company is:
(a) Void (b) Voidable (c) Ratifiable by board (d) Valid if profitable - Q34. Under the Consumer Protection Act, 2019, the CCPA stands for:
(a) Central Consumer Protection Authority (b) Consumer Complaint Processing Agency (c) Corporate Consumer Panel of India (d) Commission for Consumer Price Adjustment - Q35. A bill of exchange payable ‘on demand’ is called a:
(a) Usance bill (b) Demand bill (c) Hundia (d) Promissory note
Business Economics (Q36–Q50)
- Q36. The law of demand states that, other things equal, price and quantity demanded move:
(a) In the same direction (b) In opposite directions (c) Independently (d) Proportionally always - Q37. Inferior goods have an income elasticity of demand that is:
(a) Positive (b) Negative (c) Zero (d) Infinite - Q38. Two goods are substitutes if a rise in the price of one:
(a) Raises demand for the other (b) Reduces demand for the other (c) Leaves the other unchanged (d) Raises supply of the other - Q39. The elasticity at the midpoint of a straight-line demand curve is:
(a) Zero (b) Less than one (c) Equal to one (d) Infinite - Q40. In the short run, a firm should shut down if price falls below:
(a) Average total cost (b) Average variable cost (c) Average fixed cost (d) Marginal cost - Q41. Perfect competition implies:
(a) Few sellers (b) Product differentiation (c) Price-taking firms (d) Blocked entry - Q42. A monopoly firm’s demand curve is:
(a) Perfectly elastic (b) Perfectly inelastic (c) Downward sloping (d) Upward sloping - Q43. GDP at market prices minus depreciation gives:
(a) GNP (b) NNP at market prices (c) NDP at factor cost (d) Personal income - Q44. National income measured at constant prices adjusts for:
(a) Depreciation (b) Inflation (c) Taxes (d) Subsidies - Q45. Money performs the function of ‘store of value’ by:
(a) Serving as a medium of exchange (b) Preserving purchasing power over time (c) Setting prices (d) Measuring debt only - Q46. The central bank raises the repo rate typically to:
(a) Expand credit (b) Restrain credit and inflation (c) Depreciate the currency (d) Increase money supply - Q47. Direct taxes are generally:
(a) Regressive (b) Progressive (c) Proportional only (d) Indirect on commodities - Q48. A budget deficit means:
(a) Receipts exceed expenditure (b) Expenditure exceeds receipts (c) Taxes exceed subsidies (d) Exports exceed imports - Q49. Demand-pull inflation arises from:
(a) Rising input costs (b) Excess aggregate demand (c) Falling money supply (d) Currency appreciation - Q50. In the long run, the laws of variable proportions give way to:
(a) Increasing returns (b) Constant and then decreasing returns to scale (c) Zero returns (d) Negative costs
Answer Key and Explanations
| Q | Ans | Q | Ans | Q | Ans | Q | Ans | Q | Ans |
|---|---|---|---|---|---|---|---|---|---|
| 1 | a | 11 | b | 21 | b | 31 | b | 41 | c |
| 2 | a | 12 | b | 22 | c | 32 | b | 42 | c |
| 3 | a | 13 | c | 23 | b | 33 | a | 43 | b |
| 4 | c | 14 | b | 24 | b | 34 | a | 44 | b |
| 5 | b | 15 | a | 25 | b | 35 | b | 45 | b |
| 6 | b | 16 | a | 26 | a | 36 | b | 46 | b |
| 7 | b | 17 | a | 27 | c | 37 | b | 47 | b |
| 8 | a | 18 | b | 28 | b | 38 | a | 48 | b |
| 9 | a | 19 | a | 29 | b | 39 | c | 49 | b |
| 10 | c | 20 | b | 30 | b | 40 | b | 50 | b |
Explanations: the ten most-missed items
- Q8: Complete omission (a transaction entirely unrecorded) keeps both debit and credit sides equally short, so the trial balance still tallies.
- Q10: If closing stock appears inside the trial balance it has already been adjusted — show it only in the balance sheet; only stock given outside the trial balance enters the trading account.
- Q17: Goodwill compensation on admission goes to old partners in the sacrificing ratio so that the burden of the new partner’s share is shared by those who gave up share.
- Q21: Sections 19 and 19A of the Contract Act make coercion/undue influence voidable at the option of the party whose consent was so obtained.
- Q22: Mohori Bibee v. Dharmodas Ghose (1903) settled that a minor’s agreement is void ab initio — hence (c), not (b).
- Q25: Rule 10 of the Companies (Miscellaneous) Rules, 2014 caps partners at 50 (no cap in the Partnership Act itself).
- Q29: Since April 2010 the validity of cheques/drafts/pay orders/banker’s cheques is 3 months from date of issue.
- Q33: Ultra vires (beyond the objects clause) acts are void and cannot be ratified even unanimously — Ashbury Railway Carriage v. Riche is the classic authority.
- Q40: Below AVC the firm loses more than its fixed costs by operating; shutting down limits the loss to fixed costs.
- Q43: NNP at market prices = GDP at market prices − depreciation + net factor income from abroad; the option capturing the depreciation step is (b).
FAQ
- Who is this for? CA Foundation, CMA Foundation and B.Com first-year students; the mix mirrors foundation-level paper patterns.
- How to score? +1 per correct answer, 60 minutes; 35+/50 indicates exam readiness, 28–34 calls for another revision pass on the law section.
- Are law answers current? Yes — the Companies Act 2013, Consumer Protection Act 2019 and the 3-month cheque rule reflect the law in force; verify amendments the week before your exam.
- Next mock? Tomorrow, same 9:00 AM slot — fresh 50 on the same blueprint.
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Quick revision
- Q1.: The double-entry system of bookkeeping is credited to:(a) Luca Pacioli (b) Adam Smith (c) J.R. Batliboi (d) Henry Fayol
- Q2.: The accounting equation is:(a) Assets = Liabilities + Capital (b) Capital = Assets + Liabilities (c) Liabilities = Assets + Capital…
- Q3.: ‘Debit all expenses and losses’ is part of:(a) The golden rules of accounting (b) The matching concept (c) The money…
- Q4.: Purchase of a fixed asset on credit is first recorded in:(a) Sales book (b) Purchase book (c) Journal proper (d) Cash book
- Q5.: Under the straight-line method, depreciation is:(a) Higher in early years (b) Equal every year (c) Lower in early years (d) Based…
- Q6.: The written-down value method charges depreciation on:(a) Original cost (b) Book value (c) Market value (d) Replacement value
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