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




Question 511 :
Interest on capital is debited to Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 512 :
Received on account of issue of debentures 4,00,000

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

Question 513 :
Contribution to P.F. is allocated on the basis of number of employees.

  1. TRUE
  2. FALSE
  

Question 514 :
Many organisations keep separate record of each department.

  1. TRUE
  2. FALSE
  

Question 515 :
Bad debt recovery is a _____ receipt.

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

Question 516 :
AS 9 deals with insurance contracts.

  1. TRUE
  2. FALSE
  

Question 517 :
As per AS 1 disclosure is needed if the following concept is not followed :

  1. Going concern
  2. Realisation
  3. Matching
  4. Cost
  

Question 518 :
Which of the following is not feature of Hire purchase system ?

  1. It is an agreement of hiring
  2. It is an agreement between hirer - hire vendor
  3. The title of goods passes on last payment
  4. Cash price is paid at the time of delivery of goods
  

Question 519 :
Lower of cost and market value' is an example of which concept?

  1. Consistency
  2. Realisation
  3. Convertism
  4. Matching
  

Question 520 :
Closing stock is shown in the Balance Sheet under :

  1. Fixed assets
  2. Current assets
  3. Current liabilities
  4. Fictious assets
  

Question 521 :
New tyres to replace old tyres of a car is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 522 :
Following is not debited to Departmental P - L A/c

  1. Rent
  2. Salaries
  3. Lighting charges
  4. Carriage on purchases
  

Question 523 :
Under _____ inventory system, stock is valued on the basis of stores ledger.

  1. both (b) - (d)
  2. Periodic
  3. None of the above
  4. Perpetual
  

Question 524 :
Under perpetual inventory system, inventory is valued

  1. Continuously
  2. Yearly
  3. Half yearly
  4. None of the above
  

Question 525 :
Departmental expenses may be _____ or _____.

  1. Direct or Indirect
  2. Office or Factory
  3. fixed or flexible
  4. None of the above
  

Question 526 :
As per AS–1, any change in accounting policy

  1. Should be disclosed
  2. Should not be disclosed
  3. Requires permission from ICAI
  4. Requires permission from the Government
  

Question 527 :
Over valuation of opening stock shows less gross profit.

  1. TRUE
  2. FALSE
  

Question 528 :
Net loss is transferred to _____ A/c.

  1. Capital A/c
  2. Sales A/c
  3. Purchase A/c
  4. None of the above
  

Question 529 :
Discount on issue of debentures is treated as

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

Question 530 :
Under _____ method lots of stock should be identified.

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

Question 531 :
Cost of Stores Department is allocated on the basis of purchases of each department.

  1. TRUE
  2. FALSE
  

Question 532 :
When closing stock is undervalued

  1. Profit is understated
  2. Profit is overstated
  3. No effect on profit
  4. None of the above
  

Question 533 :
Provision for discount on debtors is calculated after deducting provision for doubtful debts.

  1. TRUE
  2. FALSE
  

Question 534 :
Finished goods are valued at cost or market price whichever is higher.

  1. TRUE
  2. FALSE
  

Question 535 :
Assets invented by the proprietor are called as inventories.

  1. TRUE
  2. FALSE
  

Question 536 :
Hire purchase price includes _____ and _____.

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

Question 537 :
Generally costly items are sold on hire purchase basis.

  1. TRUE
  2. FALSE
  

Question 538 :
Live stock is

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

Question 539 :
Expenses incurred to bring the second hand machine in working condition is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 540 :
Closing stock appearing in Trial Balance should be shown in

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