BCOM AFM-1 MCQ's




Question 31 :
Under this method, the cost of goods sold is equal to the costs of the earliest purchases on hand at the time of the sale

  1. LIFO
  2. FIFO
  3. Specific Identification
  4. Weighted Average
  

Question 32 :
Trade discounts and volume rebates should

  1. Be deducted from revenue
  2. Be ignored
  3. Be added to revenue
  4. No impact on anything
  

Question 33 :
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 34 :
The hire purchase price means the total amount payable by the hirer, made up of ____.

  1. The cash price of article - interest
  2. The cash price of article less interest
  3. The cash price of the article and the down payment
  4. The instalments and down payment
  

Question 35 :
Expenditure on research is _________

  1. treated as intangible asset
  2. treated as deferred revenue expenditure
  3. treated as expenses if unsuccessful
  4. Always treated as expenses when incurred
  

Question 36 :
For each period interest is to be calculated on the balance of

  1. Cash price less instalment amount
  2. Cash price remaining unpaid
  3. Cash price plus instalment amount
  4. Instalment price remaining unpaid
  

Question 37 :
_________ shows the financial position of the company at the end of the year

  1. Manufacturing A/c
  2. Trading A/c
  3. Profit - loss A/c
  4. Balance sheet
  

Question 38 :
Each Hire purchase Instalment amount is made up of

  1. part payment towards cash price only
  2. part payment towards interest only
  3. part payments towards cash price plus interesr
  4. part payment towards down payment
  

Question 39 :
In Departmental Accounting, Contribution to PF is approtioned on the basis of ___________

  1. No. of employees
  2. Area occupied
  3. Sales
  4. Purchases
  

Question 40 :
Direct expenses are assigned to departments on the basis of

  1. the % of gross sales by each department
  2. the % of total net sales by each department
  3. Estimated expenses
  4. Actual expenses
  

Question 41 :
Retail method of Inventory Valuation is ______

  1. Sale Price + Gross Profit
  2. Sale Price - Gross profit
  3. Sale Price - Net Profit
  4. Cost + Net Profit
  

Question 42 :
Which of the following is Capital Expenditure ?

  1. Wages paid for installation of machinery
  2. Purchase of goods
  3. Cost of repair
  4. Rent of a factory
  

Question 43 :
The title of the goods sold on hire purchase passes on payment of _______.

  1. Down payment
  2. First instalment
  3. Last instalment
  4. When the agreement is signed
  

Question 44 :
Under Hire-purchase system, the buyer agrees to pay

  1. Cash price
  2. Interest
  3. Cash price + Interest
  4. Cash Price - Interest
  

Question 45 :
Drawings are deducted from ______

  1. Sales
  2. Purchases
  3. Return Outward
  4. Capital
  

Question 46 :
Lower of cost and market value' is an example of which concept?

  1. Consistency
  2. Realisation
  3. Convertism
  4. Matching
  

Question 47 :
Which of the following would not be used as the basis for allocating expenses to Departments ?

  1. Sales
  2. E-mail message
  3. Cost of goods sold
  4. Cost of Purchase
  

Question 48 :
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 49 :
If Accounting Standards differ from any law,

  1. Accounts must be prepared as per the Law
  2. Accounts must be prepared as per the Accounting standard
  3. Management has the option to follow either the Law or the Accounting standard
  4. two accounts must be prepared - one as per law and the another as per the accounting standard
  

Question 50 :
Which of the following is not divided in the ratio of no. of employees ?

  1. Salaries
  2. Bonus
  3. Rent - Rates
  4. Wages
  

Question 51 :
In Department Accounts, Office rent is allocated on the basis of _______ of each department

  1. Sales
  2. Area occupied
  3. Purchases
  4. No. of employees
  

Question 52 :
In Departmental Accounts, Loss on sale of Assets is recorded in _________

  1. Debit side of trading A/c
  2. Debit side of Profit - loss A/c
  3. Debit side of General Profit - loss A/c
  4. No entry for such loss
  

Question 53 :
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 54 :
Which of the following is not feature of Hire purchase system ?

  1. It is an agreement of hiring
  2. It is an agreement between hirer - hire vendor
  3. The title of goods passes on last payment
  4. Cash price is paid at the time of delivery of goods
  

Question 55 :
In case of Manufacturer, Sale of scrap appears on the credit side of _____

  1. Manufacturing A/c
  2. Trading A/c
  3. Profit - loss A/c
  4. Personal A/c of Manufacturer
  

Question 56 :
__________ is the purchase price payable in full payment is made immediately.

  1. Market Price
  2. Cash Price
  3. Hire purchase price
  4. Down Payment
  

Question 57 :
Electricity expenses are allocated among different departments on the basis of

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

Question 58 :
Indirect expenses are normally ________

  1. Allocated to each department by arbitrary methods
  2. ignored when preparing departmental profit - loss
  3. Allocated to each department on some reasonable basis
  4. Actual expenses determined from departmental day books
  

Question 59 :
Under Credit purchase method of hire purchase system, Depreciation on asset purchased is charged for the first year on _________.

  1. Instalment
  2. Hire Purchase price
  3. Full cash price
  4. Cash price paid
  

Question 60 :
The initial amount payable at the time of signing the hire purchase agreement is _________

  1. the cash price
  2. the down payment
  3. the hire purchase price
  4. the interest
  
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