B.COM AFM-1 (Departmental Accounts) MCQ's




Question 1 :
Provision for unrealised profit is charged to dept. P - L A/c.

  1. TRUE
  2. FALSE
  

Question 2 :
Advertising expenses are allocated on the basis of

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

Question 3 :
Loss of goods by fire in a department is considered loss of that respective department.

  1. TRUE
  2. FALSE
  

Question 4 :
Rent is allocated on the basis of _____.

  1. Area
  2. Time
  3. Purchase
  4. Sales
  

Question 5 :
Expenses regarding purchases are allocated on the basis of turnover.

  1. TRUE
  2. FALSE
  

Question 6 :
Following is not allocated in the ratio of number of employees

  1. Bonus
  2. Salaries
  3. Rent
  4. All of the above
  

Question 7 :
Carriage inward is allocated on the basis of _____ of each department.

  1. sales
  2. purchases
  3. Expenses
  4. Income
  

Question 8 :
Departmental expenses may be _____ or _____.

  1. Direct or Indirect
  2. Office or Factory
  3. fixed or flexible
  4. None of the above
  

Question 9 :
Freight outward is allocated on the basis of _____.

  1. Sales
  2. Purchases
  3. Rent
  4. Depreciation
  

Question 10 :
General management expenses are charged to general P - L A/c.

  1. TRUE
  2. FALSE
  

Question 11 :
Depreciation is apportioned equally among all the departments.

  1. TRUE
  2. FALSE
  

Question 12 :
Sales ratio is used for allocation of :

  1. Income tax
  2. Bad debts
  3. Depreciation
  4. None of the above
  

Question 13 :
Contribution to P.F. is allocated on the basis of number of employees.

  1. TRUE
  2. FALSE
  

Question 14 :
In departmental accounting each department is not treated as a separate entity for the purpose of recording and reporting.

  1. TRUE
  2. FALSE
  

Question 15 :
_____ Accounts show department wise profit / loss.

  1. Departmental
  2. General profit - Loss A/c
  3. Balance Sheet
  4. None of the above
  

Question 16 :
Fright inward is allocated on the basis of sales of each department.

  1. TRUE
  2. FALSE
  

Question 17 :
Expenses regarding purchases are allocated on the basis of _____.

  1. Sales
  2. Area
  3. Purchases
  4. Time
  

Question 18 :
Depreciation on plant is divided equally over the different departments.

  1. TRUE
  2. FALSE
  

Question 19 :
Departmental net profit is transferred to general P - L A/c.

  1. TRUE
  2. FALSE
  

Question 20 :
Expenses traceabel with the departments are called direct expenses.

  1. TRUE
  2. FALSE
  

Question 21 :
Cost of electric power should be apportioned over different departments on the basis of :

  1. H.P. of machines
  2. No. of light points
  3. H.P. / Machine hours
  4. None of the above
  

Question 22 :
Many organisations keep separate record of each department.

  1. TRUE
  2. FALSE
  

Question 23 :
Employee welfare expenses are allocated on the basis of number of employees.

  1. TRUE
  2. FALSE
  

Question 24 :
Freight outward is allocated on the basis of purchases.

  1. TRUE
  2. FALSE
  

Question 25 :
Power is allocated on the basis of H.P. of machines in each department.

  1. TRUE
  2. FALSE
  

Question 26 :
Lighting charges are allocated on the basis of no. of employees.

  1. TRUE
  2. FALSE
  

Question 27 :
Depreciation is allocated to departments in equal proportion.

  1. TRUE
  2. FALSE
  

Question 28 :
Freight inward is allocated on the basis of _____.

  1. Sale
  2. Advertising Expenses
  3. Income
  4. Purchases
  

Question 29 :
Departmental reports help to evaluate performance of the departments.

  1. TRUE
  2. FALSE
  

Question 30 :
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
  
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