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




Question 571 :
Stock Reserve for unrealised profit for interdepartmental transfer of goods is charged to General Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 572 :
Revenue earned in the current year but not received is an asset.

  1. TRUE
  2. FALSE
  

Question 573 :
AS–2 recognises _____ and _____ Methods.

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

Question 574 :
Main product is the target product of insignificant value.

  1. TRUE
  2. FALSE
  

Question 575 :
In _____ method, stock is valued at oldest rate.

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

Question 576 :
Recovery of bad debts is a

  1. Capital receipt
  2. Revenue receipt
  3. Capital profit
  4. None of the above
  

Question 577 :
Hire purchase price excludes interest.

  1. TRUE
  2. FALSE
  

Question 578 :
Under hire purchase agreement right of ownership is not passed on to the purchaser unless.

  1. Agreement is signed
  2. Last instalment is paid
  3. Down payment is made
  4. None of the above
  

Question 579 :
Which of the following would not be used as the basis for allocating expenses to Departments ?

  1. Sales
  2. E-mail message
  3. Cost of goods sold
  4. Cost of Purchase
  

Question 580 :
Unearned commission is a liability.

  1. TRUE
  2. FALSE
  

Question 581 :
Interest is recognised on receipt basis.

  1. TRUE
  2. FALSE
  

Question 582 :
Which of the following is Capital Expenditure ?

  1. Wages paid for installation of machinery
  2. Purchase of goods
  3. Cost of repair
  4. Rent of a factory
  

Question 583 :
Inventories of finished goods are not held for sale in the ordinary course of business.

  1. TRUE
  2. FALSE
  

Question 584 :
Drawings are deducted from

  1. Sales
  2. Purchases
  3. Capital
  4. None of the above
  

Question 585 :
Received on issue of debentures

  1. Revenue receipt
  2. Capital receipt
  3. Capital profit
  4. All of the above
  

Question 586 :
There is a need of notes to accounts.

  1. TRUE
  2. FALSE
  

Question 587 :
Inventory covers

  1. WIP in construction work
  2. Biological Assets
  3. WIP in service organisation
  4. None of the above
  

Question 588 :
Which of the following items are not part of Credit side of General Profit - loss A/c ?

  1. Interest on loans given
  2. Sale of scrap
  3. Profit on sale of asset
  4. Income from investments
  

Question 589 :
Replacement cost is the cost of the asset on the date of replacement.

  1. TRUE
  2. FALSE
  

Question 590 :
Revenue from interest is recognised when

  1. Interest is received
  2. Loan is repaid
  3. Interest accrues on time basis
  4. When loan is taken
  

Question 591 :
Valuation of Inventory should be done at

  1. Net realisable value
  2. Fair market value
  3. Present value
  4. Replacement value
  

Question 592 :
Departmental Trading A/c is prepared to meet the requirement of law.

  1. TRUE
  2. FALSE
  

Question 593 :
Wages paid to workers to produce a tool is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 594 :
_____ _____ is the price at which goods are purchased today for full payment.

  1. Cash Price
  2. H. P. Price
  3. Outstanding price
  4. None of the above
  

Question 595 :
Addition of a computer lab to the building ` 60,000

  1. Revenue
  2. Capital
  3. D.R. Expenses
  4. None
  

Question 596 :
_____ expenditure is recurring.

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

Question 597 :
Trade mark is a

  1. Current asset
  2. Fixed asset
  3. Fictitious asset
  4. None of the above
  

Question 598 :
While calculating cost of inventory abnormal loss of material

  1. Should not be included in cost of inventories
  2. Should be added to cost of inventories
  3. Should be deducted from cost of inventories
  4. None of the above
  

Question 599 :
Discount allowed on sales appearing in the Trial Balance are shown

  1. on the debit side of Trading A/c
  2. on the debit side of Profit - loss A/c
  3. on the liabilities side of Balance sheet
  4. on the Asset side of Balance sheet
  

Question 600 :
Goods distributed as free sample are credited to _____ A/c.

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