BCOM AFM-1 MCQ's




Question 61 :
Cost of Goods sold is equal to

  1. Opening stock + Purchases - Direct expenses - Closing stock
  2. Opening stock - Purchases - Direct expenses - Closing stock
  3. Opening stock + Purchases + Direct expenses + Closing stock
  4. Opening stock + Purchases + Direct expenses - Closing stock
  

Question 62 :
The cost of re-painting the exterior of office premises.

  1. Trading expenses
  2. Deferred revenue expenditure
  3. Capital expenditure
  4. Revenue expenditure
  

Question 63 :
Buying an asset without having to make full payment immediately is known as

  1. Gift
  2. Online Purchase
  3. Cash Purchase
  4. Hire Purchase
  

Question 64 :
Discount allowed on sales 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 65 :
Which of the following statement is False regarding departmental accounting?

  1. A departmentwise balance sheet always prepared
  2. Direct expenses are the expenses which can be directly identified with a particular department
  3. Each department may keep its own day-books
  4. Abnormal losses are not charged to Departmental Profit - loss A/c
  

Question 66 :
In Departmental Accounts, Rent and rates are approtioned on the basis of

  1. Floor area occupied
  2. No. of workers
  3. Sales of each department
  4. Value of the assets kept
  

Question 67 :
As soon as the _______ payment is made, the hirer gets possession of the article and can start using it immediately.

  1. Full
  2. Last
  3. Cash
  4. Down
  

Question 68 :
Which of the follwing is not debited to Departmental Profit - loss A/c

  1. Commission received
  2. Salaries
  3. Rent - Rates
  4. Advertising
  

Question 69 :
________ expenditure means an expenditure carrying probable future benefits

  1. Capital
  2. Revenue
  3. Deferred
  4. Outstanding
  

Question 70 :
Paid to an advocate to defend a suit claiming that the factory site belongs to the firm, the suit was unsuccessful

  1. Revenue Expenditure
  2. Capital Expenditure
  3. Deferred Revenue Expenditure
  4. Manufacturing Expenditure
  

Question 71 :
Under this method, the cost of goods sold is equal to the costs of the earliest purchases; while the value of inventory is equal to the costs of the most recently purchased units

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

Question 72 :
In a Hire Purchase transaction, Interest paid by the purchaser is credited to the _______

  1. No entry
  2. Interest A/c
  3. Asset A/c
  4. hire vendor A/c
  

Question 73 :
The total space for a building, which serves as the headquarters for a company, is 40,000 sq. feet. There are 2 departments within the company. Department A occupies 12,500 square feet, while Department B uses 27,500 square feet. The total of building expenses for the year is Rs.24,000. What is the Department A's allocation for Building expenses for the year?

  1. Rs.4,000
  2. Rs.16,500
  3. Rs.18,000
  4. Rs.6,000
  

Question 74 :
The concept applicable for stock valuation is _________

  1. Consistency
  2. Conservation
  3. Realisation
  4. Cost
  

Question 75 :
Which of the following statement is True ?

  1. Expenses incurred to keep the machine in working condition is a capital expenses.
  2. Heavy expenses incurred on advertising at the time of introducing a new product is a deferred revenue expenditure.
  3. Amount written off from cost of the fixed asset is capital expenditure.
  4. Deferred revenue expenditure is current years revenue expenditure to be paid in the last year.
  

Question 76 :
The person who sells the goods on hire purchase basis, is called a _______.

  1. Dealer
  2. Hire Purchaser
  3. Consignor
  4. Hire Vendor
  

Question 77 :
AS 2 states that, the costs of inventories should be assigned by using preferably

  1. Retail price or standard cost
  2. Last-in-first-out (LIFO) or Simple average cost formula
  3. First-in-first-out (FIFO) or weighted average cost formula
  4. Adjusted selling price or current replacement cost
  

Question 78 :
Income received in advance is shown in the ________

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

Question 79 :
In hire purchase system, Depreciation on the asset taken is calculated on

  1. Down payment
  2. Full cash price
  3. Instalments paid
  4. Hire Purchase price
  

Question 80 :
Which of the following items are not part of Credit side of General Profit - loss A/c ?

  1. Interest on loans given
  2. Sale of scrap
  3. Profit on sale of asset
  4. Income from investments
  
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