B.COM AFM-1 | SEM-1 MCQ's




Question 1 :
By-products, wastes and spares are to be valued at net realisable price if their value is not _____.

  1. Spare Parts
  2. Finished Goods
  3. None of the above
  4. material
  

Question 2 :
Accounting standards are issued by Government of India.

  1. TRUE
  2. FALSE
  

Question 3 :
Trade discount should be

  1. Deducted from revenue
  2. Added to revenue
  3. Ignored
  4. None of the above
  

Question 4 :
Following is the example of accounting policy

  1. Going Concern
  2. Accrual
  3. Treatment of retirement benefits
  4. Disclosure
  

Question 5 :
As per AS–2, cost of inventories should include

  1. All cost of purchases
  2. All cost of purchase, cost of conversion and cost incurred to bring the inventory to the present location
  3. Cost of purchases and selling
  4. Cost of purchases and transport on sale
  

Question 6 :
Capital Account always shows credit balance.

  1. TRUE
  2. FALSE
  

Question 7 :
Current year’s profit is understated when

  1. Opening stock is undervalued
  2. Opening stock is overvalued
  3. Closing stock is undervalued
  4. Both (b) and (c)
  

Question 8 :
Spent to get a licence to run the factory ` 60,000

  1. Revenue expenditure
  2. Capital expenditure
  3. Deferred revenue expenditure
  4. None of the above
  

Question 9 :
Direct expenses are assigned to departments on the basis of

  1. the % of gross sales by each department
  2. the % of total net sales by each department
  3. Estimated expenses
  4. Actual expenses
  

Question 10 :
Depreciation on machinery is allocated on the basis of value of machinery in each department.

  1. TRUE
  2. FALSE
  

Question 11 :
Sales ratio is used for allocation of :

  1. Income tax
  2. Bad debts
  3. Depreciation
  4. None of the above
  

Question 12 :
By-products, wastes and spares are to be valued at net realisable value if their value is not material.

  1. TRUE
  2. FALSE
  

Question 13 :
Final accounts are prepared at the end of each year.

  1. TRUE
  2. FALSE
  

Question 14 :
Lighting charges are allocated on the basis of H.P. of machines in each department.

  1. TRUE
  2. FALSE
  

Question 15 :
Loan taken from bank is a

  1. Capital receipt
  2. Revenue receipt
  3. Revenue profit
  4. None of the above
  

Question 16 :
The estimated selling price in the ordinary course of business less estimated cost of completion and estimated selling costs is termed as ___

  1. Sale Value
  2. Net Realiable Value
  3. Fair Value
  4. Retail Value
  

Question 17 :
ASB uses the following process in establshment of Accounting Standards

  1. Preliminary draft, Exposure draft, Final draft, Standard
  2. Standard, Exposure draft, Preliminary draft, Final draft
  3. Exposure draft, Preliminary draft, Standard and final draft
  4. None of the above
  

Question 18 :
Periodic inventory system makes available continuous balance of stock.

  1. TRUE
  2. FALSE
  

Question 19 :
Amount paid for acquiring goodwill is deferred revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 20 :
Following is not allocated on the basis of turn over

  1. Carriage on purchases
  2. Carriage on sales
  3. Advertising
  4. Bad Debts
  

Question 21 :
Under periodic inventory system, closing stock is valued

  1. By actually counting the stock on a particular date
  2. From the stores ledger
  3. By deducting value of sales from value of purchases
  4. On estimate basis
  

Question 22 :
In _____ method, stock is over valued when the prices are rising.

  1. Weighted Average
  2. All of the above
  3. LIFO
  4. FIFO
  

Question 23 :
The seller gets the right to take back _____ of goods in case of default in payment.

  1. Replacement
  2. Possession
  3. None of the above
  4. Amount
  

Question 24 :
If standards are not followed, the _____ has to make a disclosure in the accounting report in case of failure.

  1. Manager
  2. Employee
  3. auditor
  4. None of the above
  

Question 25 :
There is a need to disclose accounting policies.

  1. TRUE
  2. FALSE
  

Question 26 :
As per AS–2, inventory should be valued at

  1. Cost
  2. Lower of cost and net realisable value
  3. Realisable value
  4. Retail price
  

Question 27 :
Staff welfare expenses are allocated on the basis of _____ _____ _____ of departments.

  1. Sale of each Department
  2. Area of each Department
  3. number of workers
  4. None of the above
  

Question 28 :
Trade discount should be

  1. Added to revenue
  2. Ignored
  3. Deducted from revenue
  4. Added to cost
  

Question 29 :
Cash price method is known as _____ _____ method.

  1. Asset Accrual Method
  2. None of the above
  

Question 30 :
Loss by fire in a department is treated as expenditure of that department.

  1. TRUE
  2. FALSE
  
Pages