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




Question 121 :
Temporary shed constructed to store material at project site is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 122 :
Amount received on sale of goods is a _____ receipt.

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

Question 123 :
The purpose of AS 1 is to establish a Standard as to

  1. The preparation of final statements
  2. Fundamental accounting assumptions
  3. Desirable accounting policies
  4. Disclosure of accounting policies
  

Question 124 :
Hire purchase price is equal to

  1. Cash price
  2. Cash Price – Interest
  3. Cash price + Interest
  4. None of the above
  

Question 125 :
Sales Return in Trial Balance is deducted from

  1. Purchases
  2. Sales
  3. Wages
  4. Salary
  

Question 126 :
As per AS–2 (Revised) Inventories are defined as an asset.

  1. TRUE
  2. FALSE
  

Question 127 :
Capital expenditure is non-recurring in nature.

  1. TRUE
  2. FALSE
  

Question 128 :
Overhaul expenses of a second hand machinery purchased are revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 129 :
Prepaid expenses is a liability.

  1. TRUE
  2. FALSE
  

Question 130 :
Heavy expenses incurred on advertising at the time of introducing a new product is a deferred revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 131 :
Which of the following is Capital Receipts ?

  1. Purchase of scrap
  2. Purchase of Raw material
  3. Purchase of Machinery
  4. Trade discount
  

Question 132 :
Inventories are valued at _____ of cost and net realisable value.

  1. lower
  2. Upper
  3. Exact
  4. None of the above
  

Question 133 :
In _____ method, stock is valued at current rate.

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

Question 134 :
Inventory includes machinery purchased and held for giving on rental basis.

  1. TRUE
  2. FALSE
  

Question 135 :
Legal expenses incurred in raising debenture loans

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

Question 136 :
Which of the following is Revenue Receipts ?

  1. Bank Loan
  2. Discount Received
  3. Issue of Shares
  4. Issue of Debentures
  

Question 137 :
Live stock is a current asset.

  1. TRUE
  2. FALSE
  

Question 138 :
Buyer does not provide depreciation on asset till he becomes the owner of asset.

  1. TRUE
  2. FALSE
  

Question 139 :
_____ method is applied when the lots of goods are not identifiable.

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

Question 140 :
Drawing reduces

  1. Capital
  2. Profit
  3. Income
  4. Purchases
  

Question 141 :
Under this method, the cost of goods sold is equal to the costs of the earliest purchases; while the value of inventory is equal to the costs of the most recently purchased units

  1. FIFO
  2. LIFO
  3. Specific Identification
  4. Weighted Average
  

Question 142 :
As per AS 1 the effect of any change in accounting policy on the value of any item in the final accounts should

  1. Be reported to directors
  2. Be reported to CEO
  3. Be disclosed
  4. Be ignored
  

Question 143 :
Cash price must be mentioned in the hire purchase agreement.

  1. TRUE
  2. FALSE
  

Question 144 :
Departmental net profit is transferred to general P - L A/c.

  1. TRUE
  2. FALSE
  

Question 145 :
Cash price includes interest.

  1. TRUE
  2. FALSE
  

Question 146 :
Cost of goods purchased for resale is –

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

Question 147 :
The standard which governs inventory valuation is

  1. AS 3
  2. AS 2
  3. AS 10
  4. AS 6
  

Question 148 :
Rent and rates are apportioned to different departments on the basis of :

  1. Area
  2. Number of employees
  3. Sales of each department
  4. None of the above
  

Question 149 :
Weighted Average method can be used under

  1. Only periodic inventory system
  2. Periodic and perpetual inventory systems
  3. Only perpetual inventory system
  4. None of the above
  

Question 150 :
Non departmental items of expenses are –

  1. Charged to general P - L A/c
  2. Charged to departments on the basis of sales
  3. Charged to departments on the basis of fixed assets
  4. None of the above
  
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