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




Question 301 :
Under hire purchase system purchaser becomes the owner of goods on payment of

  1. Down payment
  2. Last intalment
  3. Interest
  4. None of the above
  

Question 302 :
The difference between a department's Net sales and cost of goods sold is

  1. Departmental Gross Profit
  2. Departmental Net Profit
  3. Departmental Closing stock
  4. Net profit taken to Balance sheet
  

Question 303 :
Departmental accounts are necessary for evaluating departmental efficiency.

  1. TRUE
  2. FALSE
  

Question 304 :
Spent on making an entrance for a cinema house ` 1,50,000

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

Question 305 :
Furniture purchased charged to revenue. The profit will

  1. Increase
  2. Decrease
  3. Remain constant
  4. All of the above
  

Question 306 :
Hire purchase price is _____ than cash price.

  1. Lower
  2. Higher
  3. None of the above
  4. Flexible
  

Question 307 :
Cost of inventory does not include

  1. Selling cost
  2. Office overheads
  3. Exceptional waste of material
  4. All of the above
  

Question 308 :
Revenue expenditure shown as capital expenditure

  1. Increases profit
  2. Increases assets
  3. Increases profit and assets
  4. None of the above
  

Question 309 :
Expenses regarding purchases are allocated on the basis of turnover.

  1. TRUE
  2. FALSE
  

Question 310 :
An error of principle results in incorrect allocation of expenditure between capital and receipt.

  1. TRUE
  2. FALSE
  

Question 311 :
Revenue from Royalty is recognised on

  1. Cash basis
  2. Accrual basis
  3. Signing the agreement
  4. None of the above
  

Question 312 :
Expenses for registration of the purchase of building is a revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 313 :
Profit increases

  1. Capital
  2. Drawings
  3. Expenditure
  4. None of the above
  

Question 314 :
Standardisation of accounting policies is necessary to ensure.

  1. Comparability
  2. Transperancy
  3. All of the above
  4. Consistency
  

Question 315 :
As per AS 1 significant accounting policies

  1. Need not be disclosed at one place
  2. Should be disclosed at one place
  3. May be disclosed as per the choice of the management
  4. Should not be disclosed in public accounts
  

Question 316 :
Trade-mark is _________

  1. Current Asset
  2. Investment
  3. Tangible Asset
  4. Intangible Asset
  

Question 317 :
Closing stock appearing in the Trial Balance is shown in _____.

  1. Balance Sheet
  2. Profit - Loss Account
  3. None of the above
  4. Trading
  

Question 318 :
Major repairs charges including replacement of certain worn out parts incurred before using a second hand car purchased recently is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 319 :
Depreciation on plant is divided equally over the different departments.

  1. TRUE
  2. FALSE
  

Question 320 :
_____ receipts are shown in Balance Sheet.

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

Question 321 :
Purchase of car is shown on debit side of Trading Account.

  1. TRUE
  2. FALSE
  

Question 322 :
_____ receipts are shown as income in Profit - Loss Account.

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

Question 323 :
All expenses are allocated among the departments on the basis of turnover.

  1. TRUE
  2. FALSE
  

Question 324 :
Under Hire-purchase system, the buyer agrees to pay

  1. Cash price
  2. Interest
  3. Cash price + Interest
  4. Cash Price - Interest
  

Question 325 :
Drawings are debited to _____ Account.

  1. Interest
  2. Investment
  3. Capital
  4. None of the above
  

Question 326 :
Following is an example of accounting policy

  1. Realisation
  2. Accrual
  3. Entity
  4. Valuation of fixed assets
  

Question 327 :
Accounting policies are

  1. Prescribed by AS–1
  2. Same for all the organisations
  3. Change from concern to concern
  4. Laid down by law
  

Question 328 :
_____ _____ _____ is followed when there are fluctuations in prices.

  1. FIFO
  2. LIFO
  3. None of the above
  4. WAM
  

Question 329 :
Amount written off from cost of the fixed asset is capital expenditure.

  1. TRUE
  2. FALSE
  

Question 330 :
Initial payment made on signing the agreement is

  1. Down payment
  2. Cash price
  3. Hire purchase price
  4. Interest
  
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