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




Question 31 :
_____ _____ _____ method is known as credit purchase method.

  1. Cash Price
  

Question 32 :
The person who sells the goods on hire purchase basis, is called a _______.

  1. Dealer
  2. Hire Purchaser
  3. Consignor
  4. Hire Vendor
  

Question 33 :
Under hire purchase system depreciation is provided on hire purchase price.

  1. TRUE
  2. FALSE
  

Question 34 :
As per AS 2 inventories should be valued at cost or at N.R.V. whiver is less.

  1. TRUE
  2. FALSE
  

Question 35 :
Employee welfare expenses are allocated on the basis of number of employees.

  1. TRUE
  2. FALSE
  

Question 36 :
Items of expenses not connected with any department are :

  1. Charged to departments on the basis of total sales
  2. Charged to the General Profit - Loss Account
  3. Charged to departments on the basis of fixed assets employed
  4. None of the above
  

Question 37 :
Departmental reports evaluate the performance of departmental managers.

  1. TRUE
  2. FALSE
  

Question 38 :
Under _____ method, fluctuations in prices are overcome.

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

Question 39 :
Rate of gross profit indicates profitability of each department.

  1. TRUE
  2. FALSE
  

Question 40 :
There is need of _____ to accounts.

  1. Report
  2. Data
  3. notes
  4. None ot the above
  

Question 41 :
Carriage on purchase of machinery is debited to Trading Account.

  1. TRUE
  2. FALSE
  

Question 42 :
Inventory of a manufacturer includes

  1. Stock of Raw Materials
  2. Stock of WIP
  3. Stock of Finished Goods
  4. All of the above
  

Question 43 :
AS 9 is mandatory.

  1. TRUE
  2. FALSE
  

Question 44 :
Installation fees are recognised as revenue when the installation is _____ and its is _____ by the client.

  1. completed, accepted
  

Question 45 :
Welfare expenses should be charged to departments on the basis of number of workers in each department.

  1. TRUE
  2. FALSE
  

Question 46 :
Drawing reduces capital.

  1. TRUE
  2. FALSE
  

Question 47 :
Depreciation appears in the Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 48 :
Which of the following is not divided in the ratio of no. of employees ?

  1. Salaries
  2. Bonus
  3. Rent - Rates
  4. Wages
  

Question 49 :
The seller of goods on H.P. is _____ _____.

  1. Buyer
  2. None of the above
  3. Customer
  4. Hire vendor
  

Question 50 :
Following is allocated in the ratio of number of employees

  1. Welfare expenses
  2. Rent
  3. Carriage
  4. Advertising
  

Question 51 :
According to AS 1 the purpose of accounting assumptions should be disclosed.

  1. TRUE
  2. FALSE
  

Question 52 :
Expenditure on documentation regarding purchase of building is a revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 53 :
WIP in the books of a manufacturer is

  1. Partly finished goods
  2. Finished goods
  3. Raw material
  4. None of the above
  

Question 54 :
Revenue from free sample is recognised when

  1. Goods are distributed free of cost
  2. Goods are used by the buyer
  3. None of the above
  4. Revenue not recognised
  

Question 55 :
Following is not allocated in the ratio of number of employees

  1. Bonus
  2. Salaries
  3. Rent
  4. All of the above
  

Question 56 :
Materiality has to be considered in selection of accounting policies.

  1. TRUE
  2. FALSE
  

Question 57 :
Cost of electric power should be apportioned over different departments on the basis of :

  1. H.P. of machines
  2. No. of light points
  3. H.P. / Machine hours
  4. None of the above
  

Question 58 :
No purpose is served by issuing accounting standards by ICAI.

  1. TRUE
  2. FALSE
  

Question 59 :
Prepaid insurance is shown on _____ side of the Balance Sheet.

  1. Liability
  2. asset
  3. Trading A/c debit
  4. Profit - Loss A/c credit
  

Question 60 :
AS–9 suggests revenue from sale of goods is recognised when the seller transfers the goods to the buyer for a consideration.

  1. TRUE
  2. FALSE
  
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