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




Question 331 :
Hire purchase price means amount payable by the hirer which consists of

  1. Cash Price + Interest
  2. Cash Price – Interest
  3. Cash Price + Down Payment
  4. Interest + Principal
  

Question 332 :
Following factors should be considered in selection of accounting policies

  1. Liquidity
  2. Cost
  3. Materiality
  4. Morale of employees
  

Question 333 :
Paid to an advocate to defend a suit claiming that the factory site belongs to the firm, the suit was unsuccessful

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

Question 334 :
Productive wages are

  1. Debited to Trading Account
  2. Debited to Profit - Loss Account
  3. Shown as asset
  4. None of the above
  

Question 335 :
RDD is made on debtors after writing off bad debts.

  1. TRUE
  2. FALSE
  

Question 336 :
Contribution to P.F. is allocated on the basis of number of employees in each department.

  1. TRUE
  2. FALSE
  

Question 337 :
Cost of Goods sold is equal to

  1. Opening stock + Purchases - Direct expenses - Closing stock
  2. Opening stock - Purchases - Direct expenses - Closing stock
  3. Opening stock + Purchases + Direct expenses + Closing stock
  4. Opening stock + Purchases + Direct expenses - Closing stock
  

Question 338 :
Repairs to machinery charged to machinery A/c. The profit will

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

Question 339 :
Valuation of inventories is governed by

  1. Companies Act
  2. Income Tax Act
  3. AS–2
  4. AS–6
  

Question 340 :
Interest on drawings is credited to _____ Account.

  1. Balance Sheet
  2. Trading
  3. Profit - Loss
  4. All of the above
  

Question 341 :
Freight inward is allocated on the basis of purchases.

  1. TRUE
  2. FALSE
  

Question 342 :
AS per AS 2 cost of inventory should not include

  1. Interest on loan
  2. Direct Material
  3. Direct Labour
  4. Overheads
  

Question 343 :
Capital work in progress is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 344 :
Following is not an inventory

  1. Spare Parts
  2. Finished Goods
  3. Raw Material
  4. WIP
  

Question 345 :
AS–2 states that, inventory should be valued at

  1. FIFO or weighted average basis
  2. Retail price of standard cost
  3. LIFO
  4. Current replacement cost
  

Question 346 :
Opening stock of WIP is shown on

  1. Debit side of Trading Account
  2. Debit side of Manufacturing Account
  3. Credit side of Profit - Loss Account
  4. Balance Sheet asset side
  

Question 347 :
Cost of Inventory should include

  1. Import duties
  2. Taxes
  3. Canriage
  4. All of the above
  

Question 348 :
Management expenses are charged to General Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 349 :
Refer to Q. No. 20. The initial payment is

  1. ` 10,000
  2. ` 20,000
  3. ` 40,000
  4. None
  

Question 350 :
Repairs to machinery isapportioned over departments according to

  1. No. of machines
  2. Value of machinery
  3. Area occupied by each machine
  4. H.P. of machines
  

Question 351 :
An expenditure intended to benefit the current period is a revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 352 :
Provision for unrealised profit is charged to dept. P - L A/c.

  1. TRUE
  2. FALSE
  

Question 353 :
Revenue from sale of goods arises when

  1. Goods are sold out
  2. Goods are delivered
  3. Goods are depatched
  4. None of the above
  

Question 354 :
Compliance of Accounting Standard is _____.

  1. Recommendatory
  2. Optional
  3. None of the above
  4. Mandatory
  

Question 355 :
Rent of premises is allocated on the basis of number of employees of each department.

  1. TRUE
  2. FALSE
  

Question 356 :
Cost of H.R. Department is allocated on the basis of _____ _____ _____ .

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

Question 357 :
In Departmental Accounts, Loss on sale of Assets is recorded in _________

  1. Debit side of trading A/c
  2. Debit side of Profit - loss A/c
  3. Debit side of General Profit - loss A/c
  4. No entry for such loss
  

Question 358 :
Interest on drawings is credited to Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 359 :
As per AS–2, inventory covers

  1. Live stock
  2. Goods purchased for resale
  3. Investment held as stock in trade
  4. WIP in construction contracts
  

Question 360 :
Under this method it is assumed that goods sold are the units that were purchased last

  1. LIFO
  2. FIFO
  3. Weighted Average
  4. None of the above
  
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