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




Question 61 :
Factory expenses are shown in _____ Account.

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

Question 62 :
According to AS1, a change of Accounting policies likely to have an effect not in current but in later years, should be

  1. Disclosed in such later years
  2. Disclosed in the Auditor's report
  3. Ignored
  4. Disclosed in the year in which the change is made
  

Question 63 :
Down payment is the initial payment made on signing the agreement.

  1. TRUE
  2. FALSE
  

Question 64 :
Under hire purchase agreement the purchaser agrees to pay to the vendor

  1. Interest only
  2. Cash price only
  3. Cash price and interest
  4. None of the above
  

Question 65 :
Expenditure on research is _________

  1. treated as intangible asset
  2. treated as deferred revenue expenditure
  3. treated as expenses if unsuccessful
  4. Always treated as expenses when incurred
  

Question 66 :
Heavy expenditure on advertising at the time of opening of a new branch is a deferred revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 67 :
Purchase of tools for servicing.

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

Question 68 :
Interest on investment is shown on credit side of _____ Account.

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

Question 69 :
_____ is expenditure on asset held for generation of interest / dividend.

  1. Dividend
  2. Revenue
  3. None of the above
  4. Investment
  

Question 70 :
In the following areas different Accounting policies should be followed :

  1. Provision of Depreciation
  2. Valuation of Investments
  3. Valuation of Inventories
  4. All of the above
  

Question 71 :
A separate balance sheet is prepared for each department.

  1. TRUE
  2. FALSE
  

Question 72 :
Inventory of a trading concern include

  1. Raw Material
  2. Finished Goods only
  3. WIP
  4. None of the above
  

Question 73 :
Income receivable is shown in the Balance Sheet on _____ side.

  1. asset
  2. Current Liability
  3. liability
  4. None of the above
  

Question 74 :
Outstanding salaries are shown as

  1. An expense
  2. A liability
  3. An asset
  4. None of the above
  

Question 75 :
Cash price is included in hire purchase price.

  1. TRUE
  2. FALSE
  

Question 76 :
Following is the example of accounting policy

  1. Consistency
  2. Goodwill treatment
  3. Cost
  4. Conservatism
  

Question 77 :
Cash price is the purchase price payable if full payment is made immediately.

  1. TRUE
  2. FALSE
  

Question 78 :
Accounting assumptions should be disclosed in auditor’s report.

  1. TRUE
  2. FALSE
  

Question 79 :
Wages paid for installation of machinery is a _____ expenditure.

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

Question 80 :
Addition of a Gallery to factory is a

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

Question 81 :
Carriage outwards appearing in Trial Balance should be shown in

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

Question 82 :
There is a need to recognise and disclose contingent liabilities.

  1. TRUE
  2. FALSE
  

Question 83 :
Net loss is _____ from capital.

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

Question 84 :
Erection of a gas boiler to replace the old

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

Question 85 :
Following is the example of accounting policy

  1. Realisation
  2. Accrual
  3. Accounting period
  4. Recognition of profit on contract
  

Question 86 :
Gross profit is transferred to _____ Account.

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

Question 87 :
AS 2 states that, the costs of inventories should be assigned by using preferably

  1. Retail price or standard cost
  2. Last-in-first-out (LIFO) or Simple average cost formula
  3. First-in-first-out (FIFO) or weighted average cost formula
  4. Adjusted selling price or current replacement cost
  

Question 88 :
Which of the follwing is not debited to Departmental Profit - loss A/c

  1. Commission received
  2. Salaries
  3. Rent - Rates
  4. Advertising
  

Question 89 :
As per AS 2 while valuing inventories sales commission should be

  1. Deducted in arriving at NRV
  2. Added to cost
  3. Deducted from cost
  4. None
  

Question 90 :
Following factors should be considered in selection of accounting policies

  1. Going concern
  2. Growth of business
  3. Substance over form
  4. Solvency
  
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