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




Question 151 :
Indirect expenses are deducted from departmental gross profit to get departmental net profit.

  1. TRUE
  2. FALSE
  

Question 152 :
FIFO Method is logical.

  1. TRUE
  2. FALSE
  

Question 153 :
Retail method of inventory valution is

  1. Sales less gross profit
  2. Cost plus net profit
  3. Sales plus gross profit
  4. Sales less net profit
  

Question 154 :
WIP indicates

  1. Partly finished goods
  2. Partly finished repairs
  3. Partly constructed factory
  4. Raw material
  

Question 155 :
As per AS–2, cost of inventories should exclude

  1. Direct labour
  2. Interest on loans
  3. Factory overheads
  4. Cost of designing the product
  

Question 156 :
There is _____ to establish accounting standards.

  1. No need
  2. Important
  3. None of the above
  4. need
  

Question 157 :
Trade-mark is _________

  1. Current Asset
  2. Investment
  3. Tangible Asset
  4. Intangible Asset
  

Question 158 :
Which of the following statement is True ?

  1. Expenses incurred to keep the machine in working condition is a capital expenses.
  2. Heavy expenses incurred on advertising at the time of introducing a new product is a deferred revenue expenditure.
  3. Amount written off from cost of the fixed asset is capital expenditure.
  4. Deferred revenue expenditure is current years revenue expenditure to be paid in the last year.
  

Question 159 :
Outstanding salary is an income.

  1. TRUE
  2. FALSE
  

Question 160 :
As per AS–1, disclosure should be made of

  1. Significant accounting policies
  2. Assumptions in accounting
  3. Accounting principles
  4. Accounting policies
  

Question 161 :
Supervision charges should be apportioned over the different departments on the basis of :

  1. Time devoted for supervision
  2. Area occupied by each department
  3. Sales of each department
  4. None of the above
  

Question 162 :
In case of Manufacturer, Sale of scrap appears on the credit side of _____

  1. Manufacturing A/c
  2. Trading A/c
  3. Profit - loss A/c
  4. Personal A/c of Manufacturer
  

Question 163 :
Following is an example of an accounting policy

  1. Going concern
  2. Entity
  3. Conservatism
  4. Conversion of foreign currency items
  

Question 164 :
Capital receipt is recurring in nature.

  1. TRUE
  2. FALSE
  

Question 165 :
Received interest on investment ` 2,500

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

Question 166 :
Prepaid expenses are shown in balance sheet on _____ side.

  1. Current Liability
  2. None of the above
  3. Assets
  4. ficitious libility
  

Question 167 :
Retail method of Inventory Valuation is ______

  1. Sale Price + Gross Profit
  2. Sale Price - Gross profit
  3. Sale Price - Net Profit
  4. Cost + Net Profit
  

Question 168 :
Difference between hire purchase price and cash price is interest.

  1. TRUE
  2. FALSE
  

Question 169 :
The system in which each and every item in the warehouse is physically verified is

  1. Perpetual Inventory system
  2. Physical Inventory system
  3. Retail Inventory system
  4. None of the above
  

Question 170 :
The total space for a building, which serves as the headquarters for a company, is 40,000 sq. feet. There are 2 departments within the company. Department A occupies 12,500 square feet, while Department B uses 27,500 square feet. The total of building expenses for the year is Rs.24,000. What is the Department A's allocation for Building expenses for the year?

  1. Rs.4,000
  2. Rs.16,500
  3. Rs.18,000
  4. Rs.6,000
  

Question 171 :
Payment of penalty is a _____ expenditure.

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

Question 172 :
Drawings are deducted from ______

  1. Sales
  2. Purchases
  3. Return Outward
  4. Capital
  

Question 173 :
There is no difference between hire purchase price and cash price.

  1. TRUE
  2. FALSE
  

Question 174 :
Market Value is

  1. Net realisable value
  2. Net realisable value less profit
  3. Discounted present value
  4. None of the above
  

Question 175 :
Factory expenses are allocated on the basis of material purchased.

  1. TRUE
  2. FALSE
  

Question 176 :
If capital expenditure is shown as revenue expenditure, Balance Sheet shows less assets.

  1. TRUE
  2. FALSE
  

Question 177 :
Expenditure on training activities is _________

  1. treated as expenses when incurred
  2. treated as intangible asset
  3. treated as deferred revenue expenditure
  4. treated as capital
  

Question 178 :
Expenditure, which results in acquisition of a permanent asset, is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 179 :
Excess of income over expenditure is a net profit.

  1. TRUE
  2. FALSE
  

Question 180 :
As per AS–1, disclosure of accounting policies should be made

  1. At all relevant places
  2. At one place
  3. In Profit - Loss Account
  4. In Balance Sheet
  
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