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




Question 601 :
AS 9 is optional.

  1. TRUE
  2. FALSE
  

Question 602 :
Hire charges of a special machine ` 20,500

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

Question 603 :
Under _____ stock taking stock is valued periodically.

  1. Periodic
  2. Perpetual
  3. Physical
  4. All of the above
  

Question 604 :
Legal expenses in connection with purchase of land ` 50,000

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

Question 605 :
If closing stock is not considered, Profit - Loss Account will show less profit.

  1. TRUE
  2. FALSE
  

Question 606 :
Carriage outward does not appear in the Trading Account.

  1. TRUE
  2. FALSE
  

Question 607 :
Return outwards in Trial Balance are deducted from

  1. Sales
  2. Purchases
  3. Stock
  4. Capital
  

Question 608 :
Closing stock is always valued at cost or at market value whichever is less.

  1. TRUE
  2. FALSE
  

Question 609 :
Each Hire purchase Instalment amount is made up of

  1. part payment towards cash price only
  2. part payment towards interest only
  3. part payments towards cash price plus interesr
  4. part payment towards down payment
  

Question 610 :
Royalty is recognised on receipt basis.

  1. TRUE
  2. FALSE
  

Question 611 :
Rent, rates and taxes are allocated on the basis of _____ of each department.

  1. Sale
  2. purchases
  3. None of the above
  4. area
  

Question 612 :
Net profit is _____ to capital.

  1. deducted
  2. Divided
  3. added
  4. None of the above
  

Question 613 :
General management expenses are charged to general P - L A/c.

  1. TRUE
  2. FALSE
  

Question 614 :
Installation fees are recognised as revenue when installation is completed and it is accepted by the clients.

  1. TRUE
  2. FALSE
  

Question 615 :
In consignment revenue is recognised when

  1. Goods are sent on consignment
  2. Goods are received by the consignee
  3. Goods are sold out by the consignee
  4. All of the above
  

Question 616 :
Profit decreases capital.

  1. TRUE
  2. FALSE
  

Question 617 :
Under _____ method balance sheet does not show stock at current price.

  1. Physical
  2. Periodic
  3. Perpetual
  4. None of the above
  

Question 618 :
Brokerage paid on purchase of land ` 10,000

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

Question 619 :
Expenses incurred for obtaining a licence to start the factory ` 10,000

  1. Capital
  2. Revenue
  3. D.R. Expenses
  4. None of the above
  

Question 620 :
Purchased a lathe machine ` 1.50 lakhs

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

Question 621 :
Bank overdraft is a _____.

  1. Assets
  2. Expenses
  3. liability
  4. All of the above
  

Question 622 :
Depreciation is charged on cash price.

  1. TRUE
  2. FALSE
  

Question 623 :
When closing stock is overvalued

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

Question 624 :
Pulling out old building and rebuilding it ` 2,50,000

  1. Capital
  2. Revenue
  3. D.R. Expenses
  4. None of the above
  

Question 625 :
Income tax paid by a sole trader on his business income should be

  1. Debited to trading A/c
  2. Debited to P - L A/c
  3. Deducted from capital A/c in the balance sheet
  4. All of the above
  

Question 626 :
_____ method is suitable for perishable goods.

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

Question 627 :
GAAP are included in

  1. Accounting standards
  2. Accounting rules
  3. Guidance Notes
  4. Framework of Accounting
  

Question 628 :
_____ _____ is initial payment.

  1. Cash Price
  2. Down Payment
  3. Interest
  4. H. P. Price
  

Question 629 :
Commission received is a _____ receipt.

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

Question 630 :
The concept applicable for stock valuation is

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