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




Question 31 :
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 32 :
Plants means tree plants around the factory.

  1. TRUE
  2. FALSE
  

Question 33 :
Sale of old furniture is credited to Trading Account.

  1. TRUE
  2. FALSE
  

Question 34 :
Net loss is _____ from capital.

  1. added
  2. Divided
  3. deducted
  4. None of the above
  

Question 35 :
Discount represents

  1. Discount allowed
  2. Discount received
  3. Asset
  4. Liability
  

Question 36 :
Carriage outward does not appear in the Trading Account.

  1. TRUE
  2. FALSE
  

Question 37 :
Gross Margin is excess of sales over cost of goods sold.

  1. TRUE
  2. FALSE
  

Question 38 :
Live stock is a current asset.

  1. TRUE
  2. FALSE
  

Question 39 :
Purchase of machinery is debited to Trading Account.

  1. TRUE
  2. FALSE
  

Question 40 :
Depreciation appears in the Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 41 :
Which income statement format reports income from operations?

  1. Account format
  2. Single step format
  3. Multiple step format
  4. None of the above
  

Question 42 :
WIP indicates

  1. Partly finished goods
  2. Partly finished repairs
  3. Partly constructed factory
  4. Raw material
  

Question 43 :
Profit - Loss Account shows revenue expenses and losses for the year.

  1. TRUE
  2. FALSE
  

Question 44 :
Closing stock appearing in Trial Balance should be shown in

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

Question 45 :
Factory expenses are shown in _____ Account.

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

Question 46 :
Income receivable is shown in the Balance Sheet on _____ side.

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

Question 47 :
Carriage inward is shown in _____ Account.

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

Question 48 :
Every adjustment is recorded twice.

  1. TRUE
  2. FALSE
  

Question 49 :
Goods distributed as free sample are credited to _____ A/c.

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

Question 50 :
Carriage outwards appearing in Trial Balance should be shown in

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

Question 51 :
Manufacturing Account always shows :

  1. Debit balance
  2. Credit balance
  3. No balance
  4. None of the above
  

Question 52 :
Over valuation of closing stock shows more gross profit.

  1. TRUE
  2. FALSE
  

Question 53 :
Balance Sheet is a sheet of expenses and losses.

  1. TRUE
  2. FALSE
  

Question 54 :
Balance Sheet is a position statement.

  1. TRUE
  2. FALSE
  

Question 55 :
Sale of scrap is shown on

  1. Credit side of Trading Account
  2. Credit side of Manufacturing Account
  3. Credit side of Profit - Loss Account
  4. Debit side of P - L
  

Question 56 :
Closing stock is always valued at cost or at market value whichever is less.

  1. TRUE
  2. FALSE
  

Question 57 :
Debit balance on Profit - Loss Account is a real asset.

  1. TRUE
  2. FALSE
  

Question 58 :
Income received in advance is a gain.

  1. TRUE
  2. FALSE
  

Question 59 :
Profit decreases capital.

  1. TRUE
  2. FALSE
  

Question 60 :
Profit - Loss Account is a statement of assets and liabilities.

  1. TRUE
  2. FALSE
  
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