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




Question 391 :
Accounting policies are not same for all concerns.

  1. TRUE
  2. FALSE
  

Question 392 :
There is need to _____ change in accounting policies

  1. Accural
  2. Realisation
  3. disclose
  4. All of the above
  

Question 393 :
Plants means tree plants around the factory.

  1. TRUE
  2. FALSE
  

Question 394 :
Expenses traceabel with the departments are called direct expenses.

  1. TRUE
  2. FALSE
  

Question 395 :
Lighting charges are allocated on the basis of no. of employees.

  1. TRUE
  2. FALSE
  

Question 396 :
Revenue expenditure increases the profit earning capacity of an organisation.

  1. TRUE
  2. FALSE
  

Question 397 :
AS–2 governs inventory valuation.

  1. TRUE
  2. FALSE
  

Question 398 :
Which of the following statement is False regarding departmental accounting?

  1. A departmentwise balance sheet always prepared
  2. Direct expenses are the expenses which can be directly identified with a particular department
  3. Each department may keep its own day-books
  4. Abnormal losses are not charged to Departmental Profit - loss A/c
  

Question 399 :
Profit - Loss Account is a statement.

  1. TRUE
  2. FALSE
  

Question 400 :
Inventories are defined as _____ (AS–2 (Revise)).

  1. Current Liability
  2. Assets held for sale in the ordiniary course of business
  3. asset
  4. Non of the above
  

Question 401 :
Under _____ method stock is valued at oldest rate.

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

Question 402 :
Rent of building is allocated on the basis of area.

  1. TRUE
  2. FALSE
  

Question 403 :
Freight Inward appearing in Trial balance are shown

  1. On the debit side of Manufacturing A/c
  2. On the debit side of Trading A/c
  3. On the debit side of Profit - loss A/c
  4. on the Asset side of Balance sheet
  

Question 404 :
The hire purchase price means the total amount payable by the hirer, made up of ____.

  1. The cash price of article - interest
  2. The cash price of article less interest
  3. The cash price of the article and the down payment
  4. The instalments and down payment
  

Question 405 :
Advertising is a _____ expenditure.

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

Question 406 :
As per AS 2 inventories include investment held as stock by a finance company.

  1. TRUE
  2. FALSE
  

Question 407 :
Under Hire purchase, instalment is treated as hire.

  1. TRUE
  2. FALSE
  

Question 408 :
Cost of repairing the building

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

Question 409 :
Discount allowed on issue of shares is

  1. Deferred revenue expenditure
  2. Capital expenditure
  3. Revenue expenditure
  4. All of the above
  

Question 410 :
Trade discounts and volume rebates should

  1. Be deducted from revenue
  2. Be ignored
  3. Be added to revenue
  4. No impact on anything
  

Question 411 :
Demolition cost of old building is a _____ _____ _____ .

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

Question 412 :
Which of the following account is not closed?

  1. Expenses
  2. Interest received
  3. Prepaid insurance
  4. Drawings
  

Question 413 :
Depreciation is allocated on the basis of _____ _____.

  1. Area of each Department
  2. light points
  3. No. of worker
  4. Asset Value
  

Question 414 :
Disclosure should form part of

  1. Directors report
  2. Auditor's report
  3. Final accounts
  4. Books of accounts
  

Question 415 :
Manufacturing Account shows

  1. Cost of production
  2. Gross Profit
  3. Net Profit
  4. None of the above
  

Question 416 :
Amount spent for replacement of worn out part of machine is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 417 :
AS–2 is not applicable to _____ _____.

  1. Mineral Oils
  2. Machinery Spares
  3. Live stock
  4. None of the above
  

Question 418 :
_____ method assumes that stock received last is issued first.

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

Question 419 :
Hire purchase price is equal to cash price plus interest.

  1. TRUE
  2. FALSE
  

Question 420 :
Revenue expenditure is transfered to

  1. P - L A/c
  2. Balance Sheet
  3. P - L Appropriaton A/c
  4. None of the above
  
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