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




Question 211 :
Depreciation is apportioned equally among all the departments.

  1. TRUE
  2. FALSE
  

Question 212 :
The seller can take back possession of the goods in case of default in payment.

  1. TRUE
  2. FALSE
  

Question 213 :
Damaged inventory is valued at cost or market value whichever is lower.

  1. TRUE
  2. FALSE
  

Question 214 :
Purchase of a machinery without making full payment immediately is called as

  1. Cash purchase
  2. On line purchase
  3. Hire purchase
  4. None of the above
  

Question 215 :
___________ is the total amount payable by the hirer which is made up to cash price of the asset plus interest.

  1. Hire Purchase price
  2. Down Payment
  3. Instalments paid
  4. Cash price paid
  

Question 216 :
Goodwill is not a _____ asset.

  1. fictitious
  2. fixed
  3. current
  4. None of the above
  

Question 217 :
Following is not debited to departmental P - L A/c

  1. Carriage
  2. Rent
  3. Salaries
  4. Interest received
  

Question 218 :
Under hire purchase system, depreciation is provided by hire purchaser on

  1. Cash price
  2. H.P. price
  3. Down payment
  4. None of the above
  

Question 219 :
Under Instalment system purchaser becomes the owner of goods on

  1. Signing the agreement
  2. Payment of last instalment
  3. Payment of cash price
  4. None of the above
  

Question 220 :
_____ method assumes that stock received first is issued first.

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

Question 221 :
Instalment is equal to

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

Question 222 :
Welfare expenses are allocated on the basis of _____ _____.

  1. Employees
  2. purchases
  3. Sales
  4. Rent
  

Question 223 :
Manufacturing Account will always have

  1. will always have a debit balance
  2. will always credit balance
  3. may sometimes have credit balance
  4. always tally
  

Question 224 :
Sale of old furniture is credited to Trading Account.

  1. TRUE
  2. FALSE
  

Question 225 :
Disclosure of accounting policies should form part of final accounts.

  1. TRUE
  2. FALSE
  

Question 226 :
Items of incomes not pertaining to any departments are

  1. Charged to general Profit - loss A/c
  2. Departmental Profit - loss A/c
  3. Allocated to each department on the basis of purchase
  4. Shown in Balance sheet as
  

Question 227 :
A company should select accounting policy which helps to hide losses.

  1. TRUE
  2. FALSE
  

Question 228 :
Prepaid insurance is

  1. Deducted from insurance
  2. Added to insurance
  3. Shown on asset side
  4. (a) and (b)
  

Question 229 :
Recovery of bad debts during the year ` 3,500

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

Question 230 :
The buyer requests delayed delivery although he purchases the _____, takes the _____, and accepts billing, in this case the sale is complete.

  1. goods, title
  

Question 231 :
Profit - Loss Account is a statement of assets and liabilities.

  1. TRUE
  2. FALSE
  

Question 232 :
The last instalment in hire purchase includes

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

Question 233 :
LIFO method is not recognised by AS 2.

  1. TRUE
  2. FALSE
  

Question 234 :
Under _____ inventory system, stock is valued by physical stock taking.

  1. Perpetual
  2. None of the above
  3. both (a) - (d)
  4. Periodic
  

Question 235 :
Accounting Standards laid down by IAS only are followed in India.

  1. TRUE
  2. FALSE
  

Question 236 :
Carriage inward is shown in _____ A/c.

  1. Profit - Loss
  2. Balance Sheet
  3. Trading A/c
  4. All of the above
  

Question 237 :
Undervaluation of stock deflates profit.

  1. TRUE
  2. FALSE
  

Question 238 :
Trading Account always shows debit balance.

  1. TRUE
  2. FALSE
  

Question 239 :
Inventory consists of finished goods held for sale in the _____ course of business.

  1. ordinary
  2. Legal
  3. None of the above
  4. Compulsory
  

Question 240 :
Revenue can be recognised if the goods are sent to the buyer by the seller without consideration.

  1. TRUE
  2. FALSE
  
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