BCOM AFM-1 MCQ's




Question 1 :
Which of the following is Revenue Receipts ?

  1. Bank Loan
  2. Discount Received
  3. Issue of Shares
  4. Issue of Debentures
  

Question 2 :
Which of the following is not debited to General Profit - loss A/c?

  1. Audit fees
  2. Interest on loan
  3. Power - fuel
  4. Dividend paid
  

Question 3 :
Trade-mark is _________

  1. Current Asset
  2. Investment
  3. Tangible Asset
  4. Intangible Asset
  

Question 4 :
Under perpetual inventory system, inventory is valued __________

  1. Yearly
  2. Half-yearly
  3. Quarterly
  4. Continuously
  

Question 5 :
Freight Inward appearing in Trial balance are shown

  1. On the debit side of Manufacturing A/c
  2. On the debit side of Trading A/c
  3. On the debit side of Profit - loss A/c
  4. on the Asset side of Balance sheet
  

Question 6 :
The Turnover Ratio is used in the Departmental Accounts for the alloacation of ______

  1. Income-tax
  2. Depreciation
  3. Carriage Inward
  4. Bad debts
  

Question 7 :
As per AS 1 significant accounting policies

  1. Need not be disclosed at one place
  2. May be disclosed as per the choice of the management
  3. Should be disclosed at one place
  4. Should not be disclosed in public accounts
  

Question 8 :
Capital expenditure is a __________ expenditure

  1. Abnormal
  2. Normal
  3. Non-recurring
  4. Recurring
  

Question 9 :
Hire purchase system is governed by __________.

  1. Hire Purchase Act, 1972
  2. Hire Purchase Act, 1973
  3. Hire Purchase Act, 1982
  4. Hire Purchase Act, 1970
  

Question 10 :
Cash Discount on purchase of machinery received appearing in the Trial balance are shown

  1. On the Credit side of Manufacturing A/c
  2. On the Credit side of Trading A/c
  3. On the Credit side of Profit - Loss A/c
  4. On the Debit side of Profit - loss A/c
  

Question 11 :
If Cost receipts are shown as revenue receipts, then ________

  1. Accounts show lower profits but higher liabilities
  2. Accounts show lower profits and liabilities
  3. Accounts show higher profits and liabilities
  4. Accounts show higher profits but lower liabilities
  

Question 12 :
Trade-mark is _________

  1. Current Asset
  2. Investment
  3. Tangible Asset
  4. Intangible Asset
  

Question 13 :
In Departmental Accounts, _______ debited to General Profit - loss A/c.

  1. Salaries
  2. Rent
  3. Advertising
  4. Interest on Loan
  

Question 14 :
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 15 :
___________ 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 16 :
Accounting Standards in India are issued by

  1. Institute of Standards of India (ISI)
  2. Accounting Standard Board of ICAI
  3. The Central Government
  4. The International Accounting Standards board
  

Question 17 :
Which of the following is Capital Receipts ?

  1. Purchase of scrap
  2. Purchase of Raw material
  3. Purchase of Machinery
  4. Trade discount
  

Question 18 :
The standard which governs inventory valuation is _____

  1. AS 2
  2. AS 1
  3. AS 9
  4. AS 10
  

Question 19 :
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 20 :
Expenditure on training activities is _________

  1. treated as expenses when incurred
  2. treated as intangible asset
  3. treated as deferred revenue expenditure
  4. treated as capital
  

Question 21 :
No. of workers in each in each department is not used as a basis of allocation of _______

  1. Staff welfare
  2. Cost of canteen
  3. Carriage outward
  4. Cost of personnel department
  

Question 22 :
According to AS1, a change of Accounting policies likely to have an effect not in current but in later years, should be

  1. Disclosed in such later years
  2. Disclosed in the Auditor's report
  3. Ignored
  4. Disclosed in the year in which the change is made
  

Question 23 :
AS 9 does not deal with revenue arising out of

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

Question 24 :
In Departmental Accounts, Lighting is allocated on the basis of ________ of each department.

  1. No. of employees
  2. No. of points
  3. Floor area
  4. Wages
  

Question 25 :
Salaries and wages appearing in the Trial balance are shown

  1. on the debit side of Trading A/c
  2. on the debit side of Profit - loss A/c
  3. on the liabilities side of Balance sheet
  4. on the Asset side of Balance sheet
  

Question 26 :
In Departmental Accounts, Comprehensive Insurance (If ratio is not given) is taken in ________

  1. Departmental Trading A/c
  2. Departmental Profit - loss A/c
  3. General Profit - loss A/c
  4. Departmental Manufacturing A/c
  

Question 27 :
The difference between a department's Net sales and cost of goods sold is

  1. Departmental Gross Profit
  2. Departmental Net Profit
  3. Departmental Closing stock
  4. Net profit taken to Balance sheet
  

Question 28 :
Interest received under the Hire Purchase system by the hire vendor is his ________.

  1. Expenses
  2. Income
  3. Loss
  4. No gain, no loss
  

Question 29 :
The estimated selling price in the ordinary course of business less estimated cost of completion and estimated selling costs is termed as ___

  1. Sale Value
  2. Net Realiable Value
  3. Fair Value
  4. Retail Value
  

Question 30 :
Which of the following expenses is an indirect expense in departmental accounting ?

  1. Purchases
  2. Sales
  3. Carriage Inward
  4. Rent
  
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