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




Question 631 :
Interest received under the Hire Purchase system by the hire vendor is his ________.

  1. Expenses
  2. Income
  3. Loss
  4. No gain, no loss
  

Question 632 :
Wages paid for erection of machinery are debited to Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 633 :
The AS deals with revenue recognition is

  1. AS–1
  2. AS–9
  3. AS–3
  4. AS–10
  

Question 634 :
Discount represents

  1. Discount allowed
  2. Discount received
  3. Asset
  4. Liability
  

Question 635 :
_____ method is recognised by AS–2.

  1. LIFO
  2. None of the above
  3. Both (a) and (d)
  4. FIFO
  

Question 636 :
Salaries and wages appear in

  1. Trading Account
  2. Profit - Loss Account
  3. Balance Sheet
  4. Trial Balance
  

Question 637 :
Revenue from sale of goods is recognised when

  1. Sale is made
  2. Collection is made from debtors
  3. Goods are produced
  4. None of the above
  

Question 638 :
Cost of inventory should include

  1. Purchase price and cost incurred to bring the inventory to present location
  2. Purchase price only
  3. Freight only
  4. Cost of conversion only
  

Question 639 :
Perpetual inventory system makes available stock at the end of the year only.

  1. TRUE
  2. FALSE
  

Question 640 :
_____ Accounts show department wise profit / loss.

  1. Departmental
  2. General profit - Loss A/c
  3. Balance Sheet
  4. None of the above
  

Question 641 :
X Ltd. purchased a car from Y Ltd. on hire purchase basis. Cash price is ` 50,000 Initial payment ` 10,000, balance in four instalments with 10% interest. The hirer is

  1. X Ltd.
  2. Y Ltd.
  3. X and Y Ltd.
  4. None
  

Question 642 :
Installed a gas boiler ` 1,25,000

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

Question 643 :
Which of the following expenses is an indirect expense in departmental accounting ?

  1. Purchases
  2. Sales
  3. Carriage Inward
  4. Rent
  

Question 644 :
AS 2 is not applicable to mineral oils.

  1. TRUE
  2. FALSE
  

Question 645 :
_____ expenditure is shown in Profit - Loss Account.

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

Question 646 :
Right of ownership is transferred to the buyer on payment of first instalment under Hire Purchase system.

  1. TRUE
  2. FALSE
  

Question 647 :
It is necessary to standardise the accounting principles and policies for ensuring

  1. Consistency
  2. Transperancy
  3. Comparability
  4. All of the above
  

Question 648 :
The initial amount payable at the time of signing the hire purchase agreement is _________

  1. the cash price
  2. the down payment
  3. the hire purchase price
  4. the interest
  

Question 649 :
Depreciation is allocated to departments in equal proportion.

  1. TRUE
  2. FALSE
  

Question 650 :
The limitations of AS are

  1. AS may be applied mechanically
  2. Choice between treatments is difficult
  3. AS cannot supercede the law
  4. All the above
  

Question 651 :
Hire purchase system is governed by __________.

  1. Hire Purchase Act, 1972
  2. Hire Purchase Act, 1973
  3. Hire Purchase Act, 1982
  4. Hire Purchase Act, 1970
  

Question 652 :
Accounting policies are laid down by law.

  1. TRUE
  2. FALSE
  

Question 653 :
Took loan from SBI ` 5,00,000

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

Question 654 :
Revenue from Hire purchase sale is recognised when

  1. An agreement is signed
  2. Goods are delivered
  3. When last instalment is received
  4. None of the above
  

Question 655 :
Repairs incurred before using a second hand car purchased is

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

Question 656 :
Different firms follow _____ policies.

  1. Same
  2. leagal
  3. None of the above
  4. Different
  

Question 657 :
Hire charges of a machine is a

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

Question 658 :
Goods taken for personal use are reflected in drawings.

  1. TRUE
  2. FALSE
  

Question 659 :
In case of conflict between Accounting Standards and law

  1. Accounts should be prepared as per law
  2. Accounts should be prepared as per Accounting Standards
  3. Either law or AS should be followed
  4. Both should be followed
  

Question 660 :
Weighted Average Method is suitable when the lots of inventory are not identifiable.

  1. TRUE
  2. FALSE
  
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