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




Question 91 :
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 92 :
Under periodic Inventory system, inventory is valued

  1. Periodically
  2. Yearly
  3. Continuously
  4. None of the above
  

Question 93 :
Revenue means

  1. Sales
  2. Income
  3. Gains
  4. Gross inflow of benefits from ordinary activities
  

Question 94 :
Actual cash price method is known as Asset Accrual method.

  1. TRUE
  2. FALSE
  

Question 95 :
Sale of scrap is shown on

  1. Credit side of Trading Account
  2. Credit side of Manufacturing Account
  3. Credit side of Profit - Loss Account
  4. Debit side of P - L
  

Question 96 :
Initial payment on signing the agreement is called Down Payment.

  1. TRUE
  2. FALSE
  

Question 97 :
Amount spent on white washing of factory building done after every 6 months is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 98 :
Balance Sheet shows profitability of business.

  1. TRUE
  2. FALSE
  

Question 99 :
Following is an example of an accounting policy

  1. Consistency
  2. Depreciation
  3. Accrual
  4. Going concern
  

Question 100 :
Closing stock is valued at cost or at market value whichever is lower.

  1. TRUE
  2. FALSE
  

Question 101 :
In Instalment sale buyer becomes the owner of asset after payment of last payment.

  1. TRUE
  2. FALSE
  

Question 102 :
Invested in government securities

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

Question 103 :
A company should select accounting policy which brings down the burden of taxes.

  1. TRUE
  2. FALSE
  

Question 104 :
Inventory valuation affects the income statement.

  1. TRUE
  2. FALSE
  

Question 105 :
Share issue expenses may be treated as

  1. Deferred revenue expenditure
  2. Revenue expenses
  3. Added to face value of a share
  4. Deducted from face value of a share
  

Question 106 :
Amount due from customers are shown collectively in the Balance Sheet.

  1. TRUE
  2. FALSE
  

Question 107 :
Outstanding salary is a nominal account.

  1. TRUE
  2. FALSE
  

Question 108 :
Interest = Hire purchase price – _____ _____.

  1. Down Payment
  2. Cash Price
  3. Advance payment
  4. None of the above
  

Question 109 :
Closing stock of finished goods is shown on

  1. Credit side of Manufacturing Account
  2. Credit side of Trading Account
  3. Credit side of Profit - Loss Account
  4. None of the above
  

Question 110 :
Carriage inward should be shown in

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

Question 111 :
Significant accounting policies are disclosed

  1. Along with financial statementss
  2. In the books of accounts
  3. Along with balance sheet
  4. In the accounting software
  

Question 112 :
Compliance of Accounting Standards

  1. Makes financial statements comparable
  2. Makes financial statements reliable
  3. Harmonises accounting policies
  4. All the above
  

Question 113 :
AS–9 : Revenue Recognition is mandatory and applicable to all enterprises.

  1. TRUE
  2. FALSE
  

Question 114 :
Income received in advance is shown in the ________

  1. Balance sheet
  2. Profit - loss A/c
  3. Trading A/c
  4. Manufacturing A/c
  

Question 115 :
For each period interest is to be calculated on the balance of

  1. Cash price less instalment amount
  2. Cash price remaining unpaid
  3. Cash price plus instalment amount
  4. Instalment price remaining unpaid
  

Question 116 :
AS–2 defines inventory as

  1. Current assets
  2. Current liabilities
  3. Fixed assets
  4. Assets held for sale in the ordinary course of business
  

Question 117 :
Wages paid for erection of machinery are debited to Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 118 :
Inventory is valued of

  1. Cost only
  2. M.V. only
  3. Cost or N.R.V. whichever is less
  4. None of the above
  

Question 119 :
Depreciation is _____ in nature.

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

Question 120 :
_________ shows the financial position of the company at the end of the year

  1. Manufacturing A/c
  2. Trading A/c
  3. Profit - loss A/c
  4. Balance sheet
  
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