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




Question 541 :
AS–9 is applicable to _____ enterprises.

  1. all
  2. selective
  3. some
  4. None of the above
  

Question 542 :
Stock is valued at cost or at market value whichever is lower as per

  1. Realisation concept
  2. Cost concept
  3. Matching concept
  4. Entity Concept
  

Question 543 :
Discount allowed is shown on

  1. Debit side of Profit - Loss Account
  2. Debit side of Trading Account
  3. Asset side of Balance Sheet
  4. Liability side
  

Question 544 :
Balance Sheet is a sheet of expenses and losses.

  1. TRUE
  2. FALSE
  

Question 545 :
Compliance of accounting standards is optional.

  1. TRUE
  2. FALSE
  

Question 546 :
Loss of goods by fire in a department is considered loss of that respective department.

  1. TRUE
  2. FALSE
  

Question 547 :
The buyer of goods on H.P. basis is _____.

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

Question 548 :
Cost of insurance is allocated on the basis of purchases of each department.

  1. TRUE
  2. FALSE
  

Question 549 :
No. of workers in each in each department is not used as a basis of allocation of _______

  1. Staff welfare
  2. Cost of canteen
  3. Carriage outward
  4. Cost of personnel department
  

Question 550 :
Profit - Loss Account shows financial position of an organisation.

  1. TRUE
  2. FALSE
  

Question 551 :
Wages paid for installation of machinery are debited to Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 552 :
Under this method, the cost of goods sold is equal to the costs of the earliest purchases on hand at the time of the sale

  1. LIFO
  2. FIFO
  3. Specific Identification
  4. Weighted Average
  

Question 553 :
Refer to Q. No. 20. The cash price is

  1. ` 50,000
  2. ` 10,000
  3. ` 60,000
  4. None
  

Question 554 :
In valuation of inventory _____ concept is followed.

  1. Consistency
  2. Realisation
  3. Conservatism
  4. None of the above
  

Question 555 :
Depreciation can be calculated either by ____ line method or _____ value methods.

  1. None of the above
  2. straight, written down
  

Question 556 :
Preliminary expenses are

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

Question 557 :
AS–2 (Revised) is applicable to _____ enterprise.

  1. not all
  2. Selective
  3. None of the above
  4. all
  

Question 558 :
Paid to an advocate to defend a suit claiming that the factory site belongs to the firm, the suit was unsuccessful

  1. Revenue Expenditure
  2. Capital Expenditure
  3. Deferred Revenue Expenditure
  4. Manufacturing Expenditure
  

Question 559 :
Undervaluation of stock _____ profits.

  1. Inflates
  2. Deflates
  3. All of the above
  4. Maximise
  

Question 560 :
Concept applicable for inventory valuation is

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

Question 561 :
Profit - Loss Account shows revenue expenses and losses for the year.

  1. TRUE
  2. FALSE
  

Question 562 :
Fright inward is allocated on the basis of sales of each department.

  1. TRUE
  2. FALSE
  

Question 563 :
Freight outward is allocated on the basis of _____ of each department.

  1. purchases
  2. sales
  3. Income
  4. Expenses
  

Question 564 :
Revenue from cosignment is recognised when

  1. Goods are sent on consignment
  2. Goods are sold by consignee
  3. When account sale is received from the consignee
  4. When proforma invoice is sent by the consignor
  

Question 565 :
Income received in advance is an asset.

  1. TRUE
  2. FALSE
  

Question 566 :
Carriage outward is shown in _____ A/c.

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

Question 567 :
If Accounting Standards differ from any law,

  1. Accounts must be prepared as per the Law
  2. Accounts must be prepared as per the Accounting standard
  3. Management has the option to follow either the Law or the Accounting standard
  4. two accounts must be prepared - one as per law and the another as per the accounting standard
  

Question 568 :
As soon as the _______ payment is made, the hirer gets possession of the article and can start using it immediately.

  1. Full
  2. Last
  3. Cash
  4. Down
  

Question 569 :
Wages for installation of machinery charged to revenue. The profit will

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

Question 570 :
Debit balance on Profit - Loss Account is a real asset.

  1. TRUE
  2. FALSE
  
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