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




Question 481 :
Accounting Standards in India are issued by

  1. Institute of Standards of India (ISI)
  2. Accounting Standard Board of ICAI
  3. The Central Government
  4. The International Accounting Standards board
  

Question 482 :
Drawings Account shows _____ balance.

  1. debit
  2. credit
  3. None of the above
  4. Opening
  

Question 483 :
Hire purchase price = _____ _____.

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

Question 484 :
Revenue from dividend is recognised when

  1. Dividend is received
  2. Right to receive dividend is established
  3. Amount is credited to Bank Account
  4. Dividend warrant is despatched by the company
  

Question 485 :
AS _____ deals with disclosure of accounting policies.

  1. GAAP
  2. AS 1
  3. ASB
  4. None of the above
  

Question 486 :
Following is not covered by AS 9

  1. Dividend
  2. Interest
  3. Royalty
  4. Lease Rent
  

Question 487 :
In Department Accounts, Office rent is allocated on the basis of _______ of each department

  1. Sales
  2. Area occupied
  3. Purchases
  4. No. of employees
  

Question 488 :
As per AS 1 significant accounting policies should be disclosed at one place.

  1. TRUE
  2. FALSE
  

Question 489 :
Closing entry for sales discount is

  1. Sales Discount A/c Dr To Profit - Loss A/c.
  2. Sales Discount A/c Dr. To Sales A/c
  3. Profit - Loss A/c Dr To Sales Discount
  4. None of the above
  

Question 490 :
Manufacturing Account always shows :

  1. Debit balance
  2. Credit balance
  3. No balance
  4. None of the above
  

Question 491 :
Under Full Cash Price method the asset is recorded at

  1. Hire purchase price
  2. Cash price
  3. Down payment
  4. None of the above
  

Question 492 :
Profit - Loss Account is prepared before preparation of Trial Balance.

  1. TRUE
  2. FALSE
  

Question 493 :
AS–9 explains when the revenue should be recognised in Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 494 :
Hire purchase agreement must have minimum duration of 5 years.

  1. TRUE
  2. FALSE
  

Question 495 :
Excess of H.P. price over cash price is _____.

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

Question 496 :
Sales of each department is the basis of allocation of :

  1. Selling Expenses
  2. Advertising Expenses
  3. (a) and (b)
  4. None of the above
  

Question 497 :
Accounts must be prepared as per _____.

  1. Organisation
  2. All of the above
  3. Law
  4. None of the above
  

Question 498 :
Patents and copyright is a

  1. Current asset
  2. Fixed asset
  3. Fictitious asset
  4. Intangible asset
  

Question 499 :
The method reflects latest purchase cost in the closing stock is

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

Question 500 :
The cost of re-painting the exterior of office premises.

  1. Trading expenses
  2. Deferred revenue expenditure
  3. Capital expenditure
  4. Revenue expenditure
  

Question 501 :
Carriage on purchase of machinery charged to carriage. The profit will

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

Question 502 :
Under Credit purchase method of hire purchase system, Depreciation on asset purchased is charged for the first year on _________.

  1. Instalment
  2. Hire Purchase price
  3. Full cash price
  4. Cash price paid
  

Question 503 :
Freight inward is allocated on the basis of _____.

  1. Sale
  2. Advertising Expenses
  3. Income
  4. Purchases
  

Question 504 :
Departmental expenses may be direct or indirect.

  1. TRUE
  2. FALSE
  

Question 505 :
In instalment sale ownership is transferred on signing the agreement.

  1. TRUE
  2. FALSE
  

Question 506 :
Total assets must be equal to total liabilities.

  1. TRUE
  2. FALSE
  

Question 507 :
Expenses on extension of a gallery to the building is a revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 508 :
Cost of electric power should be apportioned over different departments according to :

  1. H.P. of motors
  2. No. of light points
  3. Cost of machines
  4. None of the above
  

Question 509 :
Cash Discount on purchase of machinery received appearing in the Trial balance are shown

  1. On the Credit side of Manufacturing A/c
  2. On the Credit side of Trading A/c
  3. On the Credit side of Profit - Loss A/c
  4. On the Debit side of Profit - loss A/c
  

Question 510 :
The system in which fluctuations in prices are averaged out

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