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




Question 241 :
An expenditure is treated as capital when it

  1. Increases cost of fixed assets
  2. Increases life of fixed assets
  3. Increases profit earning capacity of the organisation
  4. All of the above
  

Question 242 :
AS 9 does not deal with revenue arising out of

  1. Sale of goods
  2. Interest
  3. Service contracts
  4. Construction contracts
  

Question 243 :
Power is allocated on the basis of H.P. of machines in each department.

  1. TRUE
  2. FALSE
  

Question 244 :
Over valuation of closing stock shows more gross profit.

  1. TRUE
  2. FALSE
  

Question 245 :
Overhauling of machinery is a _____ expenditure.

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

Question 246 :
Electricity expenses are allocated among different departments on the basis of

  1. Sales
  2. Purchase
  3. No. of employees
  4. Floor space area
  

Question 247 :
Following is a direct expense in departmental accounting

  1. Advertising
  2. Office expenses
  3. Depreciation
  4. Purchases
  

Question 248 :
Heavy legal expenses are _____ _____ _____ .

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

Question 249 :
Total instalments in which the balance amount is payable is equal to _____

  1. The cash price of article - interest
  2. Hire purchase price and Down payment
  3. Hire purchase price less down payment
  4. The down payment
  

Question 250 :
Factors to be considered while selecting accounting policies

  1. Consistency
  2. Prudence
  3. Dual aspect
  4. Cost
  

Question 251 :
Balance Sheet is a position statement.

  1. TRUE
  2. FALSE
  

Question 252 :
Disclosure of Accounting Policies should form part of _____ _____.

  1. Directors report
  2. Auditor's report
  3. Final Accounts
  4. Books of accounts
  

Question 253 :
Down payment is payment made down the table.

  1. TRUE
  2. FALSE
  

Question 254 :
Advertising expenses are allocated on the basis of

  1. Purchases
  2. Sales
  3. H.P.
  4. Light Points
  

Question 255 :
Assets held for sale in the normal course of business are inventories.

  1. TRUE
  2. FALSE
  

Question 256 :
The person who sells the goods on hire purchase is a hire buyer.

  1. TRUE
  2. FALSE
  

Question 257 :
Hire purchase instalment consists of

  1. Cash price
  2. Interest
  3. Part payment of cash price plus interest
  4. All of the above
  

Question 258 :
Interest acurued on investment is shown in balance sheet on _____ side.

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

Question 259 :
It is difficult to follow a _____ accounting policy in all the circumstances.

  1. uniform
  2. Transperancy
  3. None of the above
  

Question 260 :
In hire purchase ownership is transferred on payment of _____ _____.

  1. Last Instalment
  2. first Instalment
  3. Agreement is signed
  4. Downpayment is made
  

Question 261 :
Deferred revenue expenditure is current years revenue expenditure to be paid in the last year.

  1. TRUE
  2. FALSE
  

Question 262 :
Net profit is a liability of business.

  1. TRUE
  2. FALSE
  

Question 263 :
Amount paid at the time of taking delivery of goods is

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

Question 264 :
Assets and liabilities for a particular period are shown in the Balance Sheet.

  1. TRUE
  2. FALSE
  

Question 265 :
Repairs of furniture is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 266 :
Whitewashing of a factory building is a

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

Question 267 :
In departmental accounting each department is not treated as a separate entity for the purpose of recording and reporting.

  1. TRUE
  2. FALSE
  

Question 268 :
The unexpired portion of Capital expenditure is shown as ______

  1. Liability in the balance sheet
  2. Assets in the balance sheet
  3. Income in Profit - loss A/c
  4. Expenses in Profit - loss A/c
  

Question 269 :
Refer to Q. No. 20. The hire vendor is

  1. X Ltd
  2. Y Ltd.
  3. Either X Ltd. or Y Ltd.
  4. None of them
  

Question 270 :
Assets must be equal to liabilities.

  1. TRUE
  2. FALSE
  
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