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




Question 451 :
Expenditure intended to benefit current period is a revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 452 :
Capital expenditure shown as revenue expenditure

  1. Increases profit
  2. Decreases profits
  3. Decreases Net worth
  4. (b) and (c)
  

Question 453 :
Inventories are assets

  1. held for sale in the ordinary course of business
  2. held for long term capital appreciation
  3. held for production of goods
  4. (a) and (c)
  

Question 454 :
The Rule followed in disclosure of accounting policies

  1. All significant policies should be disclosed
  2. Only a few policies should be disclosed
  3. Accounting policies should not be disclosed
  4. None of the above
  

Question 455 :
Under perpetual inventory system inventory is valued

  1. Continuously
  2. Periodically
  3. Annually
  4. Quarterly
  

Question 456 :
Under this method it is assumed that units are issued at random

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

Question 457 :
Carriage on purchase of furniture is _____ expenditure.

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

Question 458 :
Departmental Net Profit is transferred to _____.

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

Question 459 :
In hire purchase agreement vendor pays interest to buyer.

  1. TRUE
  2. FALSE
  

Question 460 :
Depreciation is allocated on the basis of

  1. Value of Assets
  2. Area
  3. Light points
  4. No of workers
  

Question 461 :
Current assets are shown in the business for a longer period.

  1. TRUE
  2. FALSE
  

Question 462 :
In Departmental Accounts, Lighting is allocated on the basis of ________ of each department.

  1. No. of employees
  2. No. of points
  3. Floor area
  4. Wages
  

Question 463 :
Expenditure on carriage of machinery is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 464 :
Classification of assets and liabilities as current or long term depends on :

  1. order of listing in the ledger
  2. whether they appear on Balance Sheet or the income statement.
  3. Relative liquidity of the items
  4. Format of balance sheet
  

Question 465 :
Accounting Standard 1 is

  1. Mandatory
  2. Optional
  3. Recommendatory
  4. No longer valid
  

Question 466 :
Dividend is recognised revenue when

  1. It is recommended
  2. It is declared
  3. It is appropriated
  4. It is paid
  

Question 467 :
Dividend is recognised as income when it is declared.

  1. TRUE
  2. FALSE
  

Question 468 :
The gain from sale of capital assets need not be added to revenue to ascertain the net profit of a business.

  1. TRUE
  2. FALSE
  

Question 469 :
For a plastic company plastic is a

  1. Raw material
  2. WIP
  3. Finished goods
  4. All of the above
  

Question 470 :
_____ _____ are laid down by law.

  1. Auditor's report
  2. Directors report
  3. Accounting Standards
  4. None of the above
  

Question 471 :
If revenue expenditure is shown as capital expenditure, Profit - Loss Account shows more profit.

  1. TRUE
  2. FALSE
  

Question 472 :
Buyer of goods under Hire purchase is called as a

  1. Hirer
  2. Buyer
  3. Customer
  4. None of the above
  

Question 473 :
Direct expenses are traceable with the departments.

  1. TRUE
  2. FALSE
  

Question 474 :
Sold Government Bonds ` 30,000

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

Question 475 :
________ expenditure means an expenditure carrying probable future benefits

  1. Capital
  2. Revenue
  3. Deferred
  4. Outstanding
  

Question 476 :
In _____ method, Balance Sheet shows current cost of stock.

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

Question 477 :
AS 1 is _____.

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

Question 478 :
Which income statement format reports income from operations?

  1. Account format
  2. Single step format
  3. Multiple step format
  4. None of the above
  

Question 479 :
Interest is always calculated on outstanding Cash Price.

  1. TRUE
  2. FALSE
  

Question 480 :
Expenditure incurred on renovation of a shop, which increased the capacity, is a capital expenditure.

  1. TRUE
  2. FALSE
  
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