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




Question 61 :
Rent, rates and taxes are allocated on the basis of _____ of each department.

  1. Sale
  2. purchases
  3. None of the above
  4. area
  

Question 62 :
Preparation of Departmental Trading Account is mandatory.

  1. TRUE
  2. FALSE
  

Question 63 :
Rent of premises is allocated on the basis of number of employees of each department.

  1. TRUE
  2. FALSE
  

Question 64 :
Welfare expenses should be charged to departments on the basis of number of workers in each department.

  1. TRUE
  2. FALSE
  

Question 65 :
Repairs to machinery isapportioned over departments according to

  1. No. of machines
  2. Value of machinery
  3. Area occupied by each machine
  4. H.P. of machines
  

Question 66 :
Welfare expenses are allocated on the basis of _____ _____.

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

Question 67 :
Lighting charges are apportioned over the departments on the basis of :

  1. Number of light points
  2. Cost of machines
  3. Sales
  4. None of the above
  

Question 68 :
Following is not debited to departmental P - L A/c

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

Question 69 :
Freight outward is allocated on the basis of _____ of each department.

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

Question 70 :
Indirect expenses are deducted from departmental gross profit to get departmental net profit.

  1. TRUE
  2. FALSE
  

Question 71 :
Following is not allocated on the basis of turn over

  1. Carriage on purchases
  2. Carriage on sales
  3. Advertising
  4. Bad Debts
  

Question 72 :
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 73 :
Rent of building is allocated on the basis of area.

  1. TRUE
  2. FALSE
  

Question 74 :
Following is not debited to General P - L A/c

  1. Power
  2. Audit fees
  3. Interest on bank loan
  4. None of the above
  

Question 75 :
Following is a direct expense in departmental accounting

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

Question 76 :
Stock Reserve for unrealised profit for interdepartmental transfer of goods is charged to General Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 77 :
A separate balance sheet is prepared for each department.

  1. TRUE
  2. FALSE
  

Question 78 :
Departmental Net Profit is transferred to _____.

  1. Trading A/c
  2. Balance Sheet
  3. None of the above
  4. General P - L A/c
  

Question 79 :
Departmental expenses may be direct or indirect.

  1. TRUE
  2. FALSE
  

Question 80 :
Rate of gross profit indicates profitability of each department.

  1. TRUE
  2. FALSE
  

Question 81 :
Departmental accounts are necessary for evaluating departmental efficiency.

  1. TRUE
  2. FALSE
  

Question 82 :
Depreciation is allocated on the basis of _____ _____.

  1. Area of each Department
  2. light points
  3. No. of worker
  4. Asset Value
  
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