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




Question 421 :
Fictitious assets are tangible.

  1. TRUE
  2. FALSE
  

Question 422 :
Power is allocated on the basis of

  1. H.P
  2. No of light points
  3. Area
  4. No of employees
  

Question 423 :
Documentation charges regarding purchase of building is a _____ expenditure.

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

Question 424 :
Different firms follow different accounting policies.

  1. TRUE
  2. FALSE
  

Question 425 :
Following items are used to calculate departmental profit except

  1. Debtors
  2. Sales
  3. Purchases
  4. Sales return
  

Question 426 :
Bad debts are charged to General Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 427 :
Expenses regarding purchases are allocated on the basis of _____.

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

Question 428 :
Outstanding wages in Trial Balance should be shown in

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

Question 429 :
Depreciation is provided on _____ _____.

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

Question 430 :
As per AS, goods and services produced and kept aside for specific projects should be valued at

  1. Contract price
  2. Net realisable value
  3. Identified individual cost
  4. Pre-placement cost
  

Question 431 :
In a Hire Purchase transaction, Interest paid by the purchaser is credited to the _______

  1. No entry
  2. Interest A/c
  3. Asset A/c
  4. hire vendor A/c
  

Question 432 :
Cheaper items are not purchased on hire purchase basis.

  1. TRUE
  2. FALSE
  

Question 433 :
Preparation of Departmental Trading Account is mandatory.

  1. TRUE
  2. FALSE
  

Question 434 :
It is necessary to standardise the accounting principles to ensure consistency.

  1. TRUE
  2. FALSE
  

Question 435 :
Accounting policies are not _____ for all organisations.

  1. Compulsory
  2. Different
  3. None of the above
  4. Same
  

Question 436 :
Repairs of machinery is a _____ expenditure.

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

Question 437 :
AS–9 explains when the _____ should be recognised in the Profit - Loss Account.

  1. All of the above
  2. revenue
  3. Divedent
  4. Royalty
  

Question 438 :
Current year’s profit is overstated when

  1. Closing stock is overvalued
  2. Closing stock is undervalued
  3. When opening stock is undervalued
  4. Both (a) and (c)
  

Question 439 :
Under _____ method stock is valued after every transaction.

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

Question 440 :
In hire purchase buyer becomes the owner of asset on signing the agreement.

  1. TRUE
  2. FALSE
  

Question 441 :
If Cost receipts are shown as revenue receipts, then ________

  1. Accounts show lower profits but higher liabilities
  2. Accounts show lower profits and liabilities
  3. Accounts show higher profits and liabilities
  4. Accounts show higher profits but lower liabilities
  

Question 442 :
Reserve for discount on debtors shows a credit balance.

  1. TRUE
  2. FALSE
  

Question 443 :
Balance Sheet is an account.

  1. TRUE
  2. FALSE
  

Question 444 :
Revenue should be recognised when goods are installed at the buyer's place to his _____ and goods are inspected and _____ by the buyer.

  1. satisfaction, accepted
  

Question 445 :
Revenue from service is recognised when

  1. Service is rendered
  2. Service is to be rendered
  3. Contract of service is made
  4. None of the above
  

Question 446 :
AS–9 does not deal with revenue arising from

  1. Sale of goods
  2. Interest
  3. Service contracts
  4. Construction contracts
  

Question 447 :
Expenses due but not paid appear in the Balance Sheet on asset side.

  1. TRUE
  2. FALSE
  

Question 448 :
Machinery spare parts are included in inventories.

  1. TRUE
  2. FALSE
  

Question 449 :
_____ expenditure does not give any future benefits.

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

Question 450 :
Spent on umbrellas to employees ` 5,000

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