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




Question 181 :
Hire purchase price is the purchase price if full payment is made immediately.

  1. TRUE
  2. FALSE
  

Question 182 :
Overvaluation of stock _____ profits.

  1. Minimise
  2. Inflates
  3. None of the above
  4. Deflates
  

Question 183 :
As per AS–1, disclosure of accounting policies should form part of

  1. Financial statements
  2. Director’s Report
  3. Auditor’s Report
  4. Books of accounts
  

Question 184 :
Pre paid expenses are revenue expenses.

  1. TRUE
  2. FALSE
  

Question 185 :
Under hire purchase system interest is charged on outstanding cash price.

  1. TRUE
  2. FALSE
  

Question 186 :
GAPPS are not included in accounting standards.

  1. TRUE
  2. FALSE
  

Question 187 :
Refer to Q. No. 20. The interest for 1st instalment is

  1. ` 4,000
  2. ` 5,000
  3. ` 9,000
  4. None of the above
  

Question 188 :
Depreciation of fixed assets is

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

Question 189 :
For a sugar mill, sugar is a

  1. Raw material
  2. WIP
  3. Finished goods
  4. Assets
  

Question 190 :
Fullcash price method is known as credit purchase method.

  1. TRUE
  2. FALSE
  

Question 191 :
In Departmental Accounts, Rent and rates are approtioned on the basis of

  1. Floor area occupied
  2. No. of workers
  3. Sales of each department
  4. Value of the assets kept
  

Question 192 :
As per AS–2, inventory covers

  1. Machinery spares
  2. WIP in case of service providers
  3. Materials or suppliers used in production
  4. Stock of mineral oil
  

Question 193 :
The factors to be considered while selecting accounting policies include '

  1. Morale of staff
  2. Materiality
  3. Liquidity
  4. Inflation
  

Question 194 :
In Departmental Accounts, Comprehensive Insurance (If ratio is not given) is taken in ________

  1. Departmental Trading A/c
  2. Departmental Profit - loss A/c
  3. General Profit - loss A/c
  4. Departmental Manufacturing A/c
  

Question 195 :
Unwritten off deferred revenue expenses are shown in the Balance Sheet on _____ side.

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

Question 196 :
On Hire Purchase the ownership is transferred on payment of _____ instalment.

  1. First
  2. Last
  3. Down payment is made
  4. Agreement is signed
  

Question 197 :
Expenses incurred to keep the machine in working condition is a capital expenses.

  1. TRUE
  2. FALSE
  

Question 198 :
Closing stock appearing in the Trial Balance is shown on

  1. Asset side of Balance Sheet
  2. Liability side of Balance Sheet
  3. Credit side of Trading Account
  4. None of the above
  

Question 199 :
Direct expenses are assigned to departments on the basis of

  1. Actual expenses incurred
  2. Estimated expenses
  3. Percentage of purchases
  4. Percentage of sales
  

Question 200 :
Repairs and maintenance charges relating to Plant - Machinery are apportioned over different departments according to :

  1. the number of machines in each department
  2. Book value of machines
  3. Area occupied by each machine
  4. None of the above
  

Question 201 :
Under perpetual inventory system, inventory is valued __________

  1. Yearly
  2. Half-yearly
  3. Quarterly
  4. Continuously
  

Question 202 :
Carriage inward is shown in _____ Account.

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

Question 203 :
Proprietor is entitled to a salary.

  1. TRUE
  2. FALSE
  

Question 204 :
Interest on drawings is

  1. Expenditure for the business
  2. Expense for the business
  3. Gain for the business
  4. None of the above
  

Question 205 :
_____ expenditure is shown in the Balance Sheet on asset side.

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

Question 206 :
Departmental reports help to evaluate performance of the departments.

  1. TRUE
  2. FALSE
  

Question 207 :
Salaries and wages appearing in the Trial balance are shown

  1. on the debit side of Trading A/c
  2. on the debit side of Profit - loss A/c
  3. on the liabilities side of Balance sheet
  4. on the Asset side of Balance sheet
  

Question 208 :
Sales are equal to

  1. Cost of goods sold + Profit
  2. Cost of goods sold – Gross profit
  3. Gross profit – Cost of goods sold
  4. None of the above
  

Question 209 :
Cost of removal of stock from one place to another place.

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

Question 210 :
Salary payable is shown in balance sheet on _____ side.

  1. Liability
  2. Fixed asset
  3. Current Asests
  4. Fictious assets
  
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