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




Question 361 :
Main product is the target product of _____ value.

  1. Inventory
  2. Net realisable
  3. All of the above
  4. significant
  

Question 362 :
_____ method is recognised by AS 2.

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

Question 363 :
Overvaluation of stock inflates profit.

  1. TRUE
  2. FALSE
  

Question 364 :
Inventories do _____ include machinery.

  1. Partialy
  2. not
  3. Mostly
  4. None of the above
  

Question 365 :
In hire purchase ownership is never transferred to the buyer

  1. TRUE
  2. FALSE
  

Question 366 :
Abnormal wastage of material should not be included in the cost of inventories.

  1. TRUE
  2. FALSE
  

Question 367 :
Interest in hire purchase transation is charged on cash price which is

  1. Full cash price
  2. Outstanding cash price
  3. Down payment
  4. None of the above
  

Question 368 :
Accrual is a fundamental accounting assumption.

  1. TRUE
  2. FALSE
  

Question 369 :
Current assets are long-term assets.

  1. TRUE
  2. FALSE
  

Question 370 :
As per AS–2 (Revised) ____ approach for costing inventories has been eliminated.

  1. Direct labour
  2. Factory overheads
  3. Direct, costing,
  4. All of the above
  

Question 371 :
Received from X Ltd. an invoice for ` 3,500 for repairs of walls of the office premises

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

Question 372 :
` 10,000 spent on replacement of worn out part of machine is

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

Question 373 :
Inventories may be valued by the _____ methods.

  1. different
  2. Written down
  3. Stright
  4. None of the above
  

Question 374 :
Goodwill is shown on

  1. Asset side of Balance Sheet
  2. Credit side of Trading Account
  3. Credit side of Profit - Loss Account
  4. Debit side of P - L A/c
  

Question 375 :
Cost of goods sold can be computed by adding opening inventory and net purchases and subtracting :

  1. Net Sales
  2. Sales discount
  3. Closing Stock
  4. Net Purchases
  

Question 376 :
Accounting standards are issued by _____.

  1. CEO
  2. Director
  3. All of the above
  4. ICAI
  

Question 377 :
Bin Card shows stock position in the Bin.

  1. TRUE
  2. FALSE
  

Question 378 :
There is no need to establish accounting standards.

  1. TRUE
  2. FALSE
  

Question 379 :
AS 9 deals with government grants.

  1. TRUE
  2. FALSE
  

Question 380 :
Under _____ method closing inventory is valued at latest rate.

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

Question 381 :
Hire purchase price is higher than cash price.

  1. TRUE
  2. FALSE
  

Question 382 :
Expenses incurred for purchase of livestock is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 383 :
Paid underwriting commission on issue of shares ` 20,000

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

Question 384 :
Paid penalty of ` 1,000 for violation of municipal rules

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

Question 385 :
Income received in advance is shown on

  1. Liability side
  2. Asset side
  3. Debit side of Profit - Loss Account
  4. None of the above
  

Question 386 :
Gross profit is transferred to _____ A/c.

  1. P - L A/c
  2. Capital A/c
  3. Sales A/c
  4. Purchase A/c
  

Question 387 :
Legal expenses incurred for abuse of trademark is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 388 :
Capital expenditure is a __________ expenditure

  1. Abnormal
  2. Normal
  3. Non-recurring
  4. Recurring
  

Question 389 :
For a sugar mill, sugarcane is a

  1. Raw material
  2. WIP
  3. Finished goods
  4. Asset
  

Question 390 :
_____ expenditure is non-recurring.

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