B.COM AFM-2 MCQ's




Question 31 :
Abnormal items included in closing stock should be ________.

  1. Deducted from closing stock
  2. Added to closing stock
  3. Added to Sales
  4. Deducted from sales
  

Question 32 :
Goods saved from fire are called as __________.

  1. Abnormal goods
  2. Claim
  3. Salvage
  4. Normal goods
  

Question 33 :
Goods costing Rs.2,10,000 were sent to branch at 25% margin on selling price. Its value to be charged to the Branch account is at _____________.

  1. Rs.3,00,000
  2. Rs.2,50,000
  3. Rs.2,75,000
  4. Rs.2,80,000
  

Question 34 :
If total stock is Rs.50,000; the value of policy is Rs.70,000 and the entire stock is lost, the claim will be for _________.

  1. Rs. 70,000
  2. Rs. 35,714
  3. Rs. 50,000
  4. Rs. 60,000
  

Question 35 :
Consignor sends to consignee __________.

  1. Sales A/c
  2. Account Sales
  3. Proforma Invoice
  4. Invoice
  

Question 36 :
In Consignment Accounts, Bad debts are ___________.

  1. Debited to general commission A/c and credited to consignment Debtor's A/c, when there is no del credere commission.
  2. Debited to consignment debtors A/c and credited to Consignor's A/c, when there is no del credere commission
  3. No entry is passed
  4. Debited to Consignor's A/c and credited to Consignment Debtor's A/c, when there is no del credere commission
  

Question 37 :
Goods recovered in good condition at the time of fire accident is called ________.

  1. Puchased goods
  2. Damaged goods
  3. Saved Goods
  4. Salvaged goods
  

Question 38 :
The following entry is passed for a dependent branch at Pune following the Debtors method - Pune Branch A/c…....................................................Dr To Cash / Bank A/c This entry may indicate -

  1. Cash sent to Pune Branch by HO
  2. Cash received from Pune branch by another branch
  3. Cash received from Pune branch by HO
  4. Expenses of HO paid by Pune branch
  

Question 39 :
_______________ is required to find out closing stock lying in the godown on the date of fire.

  1. Net profit ratio
  2. Gross profit ratio
  3. Expenses ratio
  4. Income ratio
  

Question 40 :
Consignor-consignee relationship is _____________.

  1. Employeremployee relationship
  2. Principal-agent relationship
  3. Master-servant relationship
  4. Merchant-seller relationship
  

Question 41 :
Fire Insurance policy is taken up to indemnify _________.

  1. Capital losses to tangible property
  2. Revenue losses to tangible property
  3. Capital gains to tangible property
  4. Revenue gains to tangible property
  

Question 42 :
In Fire Insurance claims, Misapprotioned cash sales should be ________.

  1. Ignored for a while
  2. Deducted from sales A/c
  3. Added to Puchases A/c
  4. Added to sales A/c
  

Question 43 :
Branch Account under debtors system is a __________.

  1. Real A/c
  2. Nominal A/c
  3. Personal A/c
  4. Representative personal A/c
  

Question 44 :
Cash received from debtors needed for the construction of cash account can be ascertained from ___________.

  1. Total Creditors
  2. Total Debtors A/c
  3. Analysis of cash book
  4. Balance sheet
  

Question 45 :
If the consignor carries on Trading business, then the balance of goods sent on consignment A/c is transferred to __________.

  1. Profit - loss A/c
  2. Trading A/c
  3. Purchase A/c
  4. Consignment A/c
  

Question 46 :
Which of the following expenses is not considered as part of cost of stock ?

  1. Packing, loading and insurance paid by the consignor
  2. Inward consignment freight paid by the consignee
  3. Transport charges upto godown paid by consignee
  4. Insurance charges paid by consignee
  

Question 47 :
The branch is said to be _____ when its accounts are maintained by Head office.

  1. Home
  2. Foreign
  3. Independent
  4. Dependent
  

Question 48 :
A fire insurance policy usually includes an ________ to discourage the under insurance of stock or any asset.

  1. Weighted clause
  2. Average clause
  3. Closing stock
  4. Opening stock
  

Question 49 :
Goods are sent to the Branch at 20% margin on selling price. When Branch stocks disclose a surplus of Rs.2,000 the amount to be credited to Branch Adjustement A/c will be ________.

  1. Rs.2,000
  2. Rs.333
  3. Rs.1,600
  4. Rs.400
  

Question 50 :
Branch Adjustment Account is opened __________.

  1. Under debtors method, when goods are sent by HO to branch at cost
  2. Under stock and debtors method, when goods are sent by HO to branch at cost
  3. Under debtors method, when goods are sent by HO to branch at invoice price
  4. Under stock and debtors method, when goods are sent by HO to branch at invoice price
  

Question 51 :
An estimate of assets and liabilities as on a date is called __________.

  1. Balance sheet
  2. Statement of affairs
  3. Statement of Capital
  4. Trial Balance
  

Question 52 :
With the available information a trader need to convert the incomplete records into complete records, it is known as _________.

  1. Complete records method
  2. Statement of affairs method
  3. Conversion method
  4. Random method
  

Question 53 :
Which of the following statement is not True ?

  1. If Del-credere commission is allowed, bad debt will not be recorded in the books of consignor
  2. If Del-credere commission is allowed, bad debt will be debited in consignment account
  3. Del-credere commission is allowed by consignor to consignee
  4. Del-credere commission is generally relevant for credit sales
  

Question 54 :
On loss of goods by fire, a trader can claim compensation for __________.

  1. The cost of actual physical stock destroyed by fire less salvage, if any
  2. The market value of actual physical stock destroyed by fire.
  3. The cost of book stock on date of fire.
  4. The cost of actual physical stock destroyed or the cost of book stock on date of fire as per stock records whichever is lower.
  

Question 55 :
Average clause is an Insurance policy applies only in case of ___________.

  1. Life-insurance
  2. Over-insurance
  3. Under-insurance
  4. Car-insurance
  

Question 56 :
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 Gross profit ?

  1. Rs.45,000
  2. Rs.72,000
  3. Rs.50,000
  4. Rs.54,000
  

Question 57 :
The following entry is passed for a dependent branch at Pune following the Debtors method - Goods sent to Pune Branch A/c…....................................................Dr To Pune Branch A/cThis entry may indicate -

  1. Goods returned to HO by the Pune Branch
  2. Goods returned to HO directly by the Pune branch customers
  3. Goods sent by Pune branch to another branch
  4. All of the above
  

Question 58 :
Under the 'Debtor' method, Goods returned by debtors to branch

  1. Will not be recorded by the HO in the Branch A/c
  2. Will be debited to Goods sent Branch A/c and credited to the Branch A/c
  3. Will be debited to Goods sent Branch A/c and credited to the Branch Debtors A/c
  4. Will be debited to Branch Stock A/c and credited to the Branch Debtors A/c
  

Question 59 :
The relationship between the Consignor and the Consignee is that of ________.

  1. Principal and Principal
  2. Agent and Principal
  3. Principal and Agent
  4. Agent and Subagent
  

Question 60 :
Goods sent on consignment are the property of ________.

  1. the consignee
  2. both the consignor and the consignee equally
  3. either the consignor or the consignee
  4. the consignor
  
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