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




Question 271 :
The buyer purchases the goods, takes the title and accepts billing, the revenue will be recognised.

  1. TRUE
  2. FALSE
  

Question 272 :
Rent is allocated on the basis of _____.

  1. Area
  2. Time
  3. Purchase
  4. Sales
  

Question 273 :
__________ is the purchase price payable in full payment is made immediately.

  1. Market Price
  2. Cash Price
  3. Hire purchase price
  4. Down Payment
  

Question 274 :
AS–2 (Revised) is applicable to all enterprises.

  1. TRUE
  2. FALSE
  

Question 275 :
Trading Account always shows credit balance.

  1. TRUE
  2. FALSE
  

Question 276 :
Amount paid for acquisition of patents is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 277 :
Following is debited to general P - L A/c

  1. Power
  2. Rent
  3. Audit fees
  4. None of the above
  

Question 278 :
Revenue expenditure is recurring in nature.

  1. TRUE
  2. FALSE
  

Question 279 :
Goods are installed at the buyer's place to his satisfaction, the revenue can be recognised.

  1. TRUE
  2. FALSE
  

Question 280 :
_____ method is not recognised by AS 2.

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

Question 281 :
In hire purchase system, Depreciation on the asset taken is calculated on

  1. Down payment
  2. Full cash price
  3. Instalments paid
  4. Hire Purchase price
  

Question 282 :
Carriage on purchases is

  1. Added to the cost of inventory
  2. Deducted from the cost of inventory
  3. Multiplied by the cost of inventory
  4. None of the above
  

Question 283 :
Historical cost is the cost to be incurred in future.

  1. TRUE
  2. FALSE
  

Question 284 :
Goods given as sample should be credited to

  1. Advertisement A/c
  2. Sales A/c
  3. Purchase A/c
  4. None of the above
  

Question 285 :
Depreciation is allocated on the basis of value of assets.

  1. TRUE
  2. FALSE
  

Question 286 :
Fixed assets are stated in the Balance Sheet at market value.

  1. TRUE
  2. FALSE
  

Question 287 :
Depreciation is charged at a certain rate on _____ _____ of the asset.

  1. Down Payment
  2. Cash Price
  3. Principal
  4. None of the above
  

Question 288 :
Freight outward is allocated on the basis of _____.

  1. Sales
  2. Purchases
  3. Rent
  4. Depreciation
  

Question 289 :
Possession of goods is transferred on _____ the agreement.

  1. Cancelling
  2. Making
  3. Signing
  4. All of the above
  

Question 290 :
Freight outward is allocated on the basis of purchases.

  1. TRUE
  2. FALSE
  

Question 291 :
Cost of purchase does not include duties and taxes.

  1. TRUE
  2. FALSE
  

Question 292 :
Under hire purchase agreement interest is charged on _____ cash price.

  1. Prepaid
  2. Actual
  3. Outstanding
  4. All of the above
  

Question 293 :
Carriage inward is allocated on the basis of _____ of each department.

  1. sales
  2. purchases
  3. Expenses
  4. Income
  

Question 294 :
Purchase of machinery is debited to Trading Account.

  1. TRUE
  2. FALSE
  

Question 295 :
The standard which governs inventory valuation is _____

  1. AS 2
  2. AS 1
  3. AS 9
  4. AS 10
  

Question 296 :
Initial amount paid on signing the agreement is called _____ _____.

  1. Cash Price
  2. H. P. Price
  3. Down Payment
  4. None of the above
  

Question 297 :
The feature of hire purchase is

  1. User ultimately become the owner
  2. Instalment includea principal only
  3. User does not pay any interest
  4. None of the above
  

Question 298 :
Inventories include machinery.

  1. TRUE
  2. FALSE
  

Question 299 :
Revenue from Advertising Agency Commission is recognised when

  1. Advertisement appears before the public
  2. Advertisement agreement is signed
  3. Advertisement copy is drafted
  4. None of the above
  

Question 300 :
Replacement of old tyres by new one

  1. Revenue
  2. Capital
  3. D.R. Expenses
  4. None of the above
  
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