B.COM AFM-2 MCQ's




Question 1 :
Under the 'Debtor' method, closing balance in the Branch account indicates

  1. amount due from the branch
  2. Profit or loss at the branch
  3. Closing stock at the branch
  4. Opening stock at the branch
  

Question 2 :
In consignment Accounting, to consign means _________.

  1. to receive
  2. to purchase
  3. to send
  4. to transfer
  

Question 3 :
If the consignee gets del credere commission, ___________.

  1. the consignee will bear the bad debts
  2. the consignor will bear the bad debts
  3. the consignee will pay the price immediately on receipt of consignment
  4. the consignee will bear all the expenses
  

Question 4 :
As per average clause Insurance company pays compensation ________

  1. More than the loss
  2. Less than the loss
  3. Proportionally
  4. Exact the amount of loss
  

Question 5 :
Unless otherwise agreed, Del-credere is allowed on _______.

  1. Net sales
  2. Gross sales
  3. Gross credit sales
  4. Net Credit sales
  

Question 6 :
In signle entry to find out credit sale _______ is prepared.

  1. Debtors A/c
  2. Cash A/c
  3. Creditors A/c
  4. Bank A/c
  

Question 7 :
If books are kept under single entry system, opening stock is ascertained by preparing ___________.

  1. Opening stock A/c
  2. Stock register
  3. Memorandum Trading A/c
  4. Opening statement of Affairs
  

Question 8 :
Which of the following statement is True ?

  1. Book stock on date of fire + Goods not received, but not included in purchases = Stock destroyed by fire
  2. Book stock on date of fire - Goods not received, but not included in purchases = Stock destroyed by fire
  3. Book stock on date of fire + Goods not received, but not included in purchases = Stock destroyed fire
  4. Book stock on date of fire + Goods included in purchases but received = Stock destroyed fire
  

Question 9 :
Proforma invoice is prepared by the ________.

  1. Seller
  2. Consignor
  3. Buyer
  4. Consignee
  

Question 10 :
The cash and credit sales of a branch are Rs.5,000 and Rs.10,000 respectively. The amount collected from debtors is Rs.10,000. Under Debtors system the amount credited to branch will be _____

  1. Rs.20,000
  2. Rs.15,000
  3. Rs.25,000
  4. Rs.10,000
  

Question 11 :
Bills Payable dishonoured are debited to ________ Account.

  1. Bills Receivables
  2. Bills Payable
  3. Sundry Debtors
  4. Sundry Creditors
  

Question 12 :
The owner of the consignment stock is ___________.

  1. Consignor
  2. Consignee
  3. Debtors
  4. Suppliers
  

Question 13 :
Claim to be lodged with Insurance company is for _________.

  1. Policy amount - Salvaged goods
  2. Closing stock on the date of fire + salvaged goods
  3. Closing stock on the date of fire - salvaged goods
  4. Policy amount + Salvaged goods
  

Question 14 :
When the consignor sends goods to consignee he prepares a __________.

  1. Account sales
  2. Cash memo
  3. Proforma Invoice
  4. Credit memo
  

Question 15 :
Which of the following statement is True ?

  1. Under single entry system, only one journal entry is passed for all transactions during a day
  2. Under single entry system, all entries are passed as well as posted only by one person
  3. Under single entry system, it is not possible to ascertain the gross profit earned by the business.
  4. Under single entry system, Only one aspect of transaction is recorded for all transactions.
  

Question 16 :
Closing balance of trade creditors can be ascertained from ___________.

  1. Total Creditors
  2. Total Debtors A/c
  3. Bills Payable A/c
  4. Cash A/c
  

Question 17 :
Closing stock with consignee is shown in the Balance sheet of ___________.

  1. Consignee
  2. Consignor
  3. Agency
  4. Profit
  

Question 18 :
The following entry is passed for a dependent branch at Pune following the Debtors method - Pune Branch A/c…....................................................Dr To Goods sent to Pune Branch A/cThis entry may indicate -

  1. Goods sent to Pune branch by Head office
  2. Goods sends to Pune Branch by another branch
  3. Either Goods sent to Pune branch by Head office or Goods sends to Pune Branch by another branch
  4. Neither Goods sent to Pune branch by Head office nor Goods sends to Pune Branch by another branch
  

Question 19 :
When consignee incurs expenses __________.

  1. No entry is passed in the books of the consignor
  2. Entry is passed in the books of both the consignor and the consignee
  3. Entry is passed in the books of only the consignor
  4. Entry is passed in the books of either the consignor or the consignee.
  

Question 20 :
If there are any damaged or obsolete items in stock lost by fire, the Memorandum Trading A/c _____________.

  1. Should show only the normal items
  2. should have two amount columns on each side for Normal items and Abnormal items
  3. Should show only the abnormal items
  4. should have only one amount columns on either side for Normal items and Abnormal items
  

Question 21 :
Which of the following statement is True ?

  1. The income, expenses, assets and liabilities of an independent branch can be ascertained only by HO
  2. Purchase of fixed assets by branch on credit will be recorded in the branch A/c kept under the Debtor method
  3. Receipts from branch debtors are not recorded in the Branch account kept under the Debtor method.
  4. Under stock and debtors method,branch stock A/c is opened in order to ascertain net profit/loss of branch
  

Question 22 :
If books are kept under single entry system, Credit purchases are ascertained by preparing __________.

  1. Total Creditors A/c
  2. Credit sales A/c
  3. Trading A/c
  4. Total Debtos A/c
  

Question 23 :
Head office sends the goods at invoice price to a dependent branch. The total of Cash remitted to HO + Cash balance with branch + Closing stock with branch (at invoice price) is more than the total (at invoice price) of Opening stock with branch and goods sent to branch. This indicates

  1. Likely fraud / error involving cash and / or stock
  2. Cash and stock on the last day of the year with the branch
  3. Profit for the year earned by the branch
  4. Loss for the year recorded by the branch
  

Question 24 :
If books are kept under single entry system, Credit sales are ascertained by preparing __________.

  1. Total Creditors A/c
  2. Credit sales A/c
  3. Trading A/c
  4. Total Debtos A/c
  

Question 25 :
Head Office at Mumbai keeps a single 'Pune Branch A/c' which is used to record all items relating to the branch.

  1. Pune branch is an independent branch whose accounts are kept under the 'Debtors' method.
  2. Pune branch is dependent branch whose accounts are kept under the 'Debtors' method.
  3. Pune branch is a dependent branch whose accounts are kept under the 'Stock and Debtors' method.
  4. Pune branch is a independent branch whose accounts are kept under the 'Stock and Debtors' method.
  

Question 26 :
In Branch Accounts, Depreciation on branch assets under debtors system is ___________.

  1. Not shown separately in branch A/c
  2. Shown in Branch A/c
  3. Not accounted
  4. Shown in the Profit - loss A/c of head office
  

Question 27 :
The average clause in a loss of profit protects the __________.

  1. Insured
  2. Insurer
  3. Workers
  4. CEO's
  

Question 28 :
Sales Rs.2,00,000; Purchases Rs.1,30,000; Wages Rs.18,000; Closing stock Rs.22,000; Opening stock Rs.20,000. What was the Rate of Gross profit ?

  1. 0.36
  2. 0.27
  3. 0.25
  4. 0.2
  

Question 29 :
Del credere commission is paid then __________ A/c should be debited for credit sales.

  1. Consigneee
  2. Consignment
  3. Consignment Debtors
  4. Consignor
  

Question 30 :
Carriage on Purchases should be _________.

  1. Debited to Memorandum Trading A/c
  2. Credited to Memorandum Trading A/c
  3. Deducted from Sales
  4. Ignored
  
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