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




Question 661 :
Under this method it is assumed that goods sold are the first units that were purchased

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

Question 662 :
Lighting charges are apportioned over the departments on the basis of :

  1. Number of light points
  2. Cost of machines
  3. Sales
  4. None of the above
  

Question 663 :
Revenue from instalment sale is recognised when

  1. An agreement is signed
  2. Goods are delivered
  3. Initial payment is received
  4. Last instalment is paid
  

Question 664 :
Under the purchase system depreciation is provided on cash price.

  1. TRUE
  2. FALSE
  

Question 665 :
The title of the goods sold on hire purchase passes on payment of _______.

  1. Down payment
  2. First instalment
  3. Last instalment
  4. When the agreement is signed
  

Question 666 :
Which of the following is not debited to General Profit - loss A/c?

  1. Audit fees
  2. Interest on loan
  3. Power - fuel
  4. Dividend paid
  

Question 667 :
The system which keeps records continuously is

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

Question 668 :
Expenses traceable with the departments are called _____.

  1. Direct Income
  2. Welfare Expenses
  3. Direct Expenses
  4. None of the above
  

Question 669 :
Balance Sheet gives information regarding :

  1. Result of operations
  2. Financial position on a particular date
  3. operating efficiency of the firm
  4. None of the above
  

Question 670 :
As per AS–9 revenue from sale of goods is recognised when the seller _____ the goods to the buyer for a _____.

  1. transfers, consideration
  

Question 671 :
All indirect expenses are debited to _____ Account.

  1. Profit - Loss
  2. Trading
  3. Balance Sheet
  4. None of the above
  

Question 672 :
Materiality has to be considered in selection of _____ _____.

  1. Final Statements
  2. Fundamental accounting assumptions
  3. Accounting Policies
  4. None of the above
  

Question 673 :
Capital Account always shows credit balance.

  1. TRUE
  2. FALSE
  

Question 674 :
Indirect expenses are normally ________

  1. Allocated to each department by arbitrary methods
  2. ignored when preparing departmental profit - loss
  3. Allocated to each department on some reasonable basis
  4. Actual expenses determined from departmental day books
  

Question 675 :
Under _____ method it is assumed that stock received first is issued first.

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

Question 676 :
Every adjustment is recorded twice.

  1. TRUE
  2. FALSE
  

Question 677 :
In Departmental Accounts, _______ debited to General Profit - loss A/c.

  1. Salaries
  2. Rent
  3. Advertising
  4. Interest on Loan
  

Question 678 :
As per AS 1 significant accounting policies

  1. Need not be disclosed at one place
  2. May be disclosed as per the choice of the management
  3. Should be disclosed at one place
  4. Should not be disclosed in public accounts
  

Question 679 :
The concept applicable for stock valuation is _________

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

Question 680 :
Direct costing approach for costing inventories has been eliminated.

  1. TRUE
  2. FALSE
  

Question 681 :
Opening stock of finished goods is shown on debit side of

  1. Trading Account
  2. Profit - Loss Account
  3. Balance Sheet
  4. All of the above
  

Question 682 :
Wages and salaries appear in

  1. Trading Account
  2. Profit - Loss Account
  3. Balance Sheet
  4. None of the above
  

Question 683 :
There is a need to disclose change in accounting policies.

  1. TRUE
  2. FALSE
  

Question 684 :
Hire purchase price is known as cash price.

  1. TRUE
  2. FALSE
  

Question 685 :
Cost of transport of material

  1. Increases landing cost of material
  2. Increases conversin cost
  3. Decreases variable cost
  4. None of the above
  

Question 686 :
A change in accouning policy requires sanction of the Central government.

  1. TRUE
  2. FALSE
  

Question 687 :
Inventory should be valued at cost or M.V. whichever is _____.

  1. More
  2. Same
  3. None of the above
  4. Less
  

Question 688 :
Depreciation is charged on asset at a certain rate on

  1. Down Payment
  2. Cash price
  3. Principal
  4. None of the above
  

Question 689 :
Income received in advance is a gain.

  1. TRUE
  2. FALSE
  

Question 690 :
The Turnover Ratio is used in the Departmental Accounts for the alloacation of ______

  1. Income-tax
  2. Depreciation
  3. Carriage Inward
  4. Bad debts
  
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