B.COM AFM-2 MCQ's




Question 61 :
Stock reserve in relation to cloaing stock appears ___________.

  1. On the credit side of branch A/c
  2. On the debit side of branch A/c
  3. On the debit side of Profit - loss A/c
  4. On the credit side of profit - loss A/c
  

Question 62 :
Which of the following statement is False

  1. Consignor is the owner of the consignment A/c
  2. Del-credere commission is allowed by consignor to protect himself for bad debt
  3. Proportionate consignor's expenses is added up with consignment stock
  4. All proportioante consignee's expenses will be added up for valuation of consignment stock
  

Question 63 :
When the Head Office sends the goods at Invoice price to a dependent branch, the loading on goods sent by HO to branch is adjusted by passing the following entry

  1. Branch A/c _______________ Dr To Stock reserve A/c
  2. Goods sent to branch A/c___________Dr To Branch A/c
  3. Stock Reserve A/c ______________Dr To Branch A/c
  4. Branch A/c ______ Dr To Goods sent to Branch A/c
  

Question 64 :
When the consignee receives the goods on consignment, __________.

  1. The consignee buys the goods
  2. The consignee merely agrees to sell them on behalf of the consignor
  3. The consignee and the consignor become equal partners
  4. The consignee and the consignor become coventures
  

Question 65 :
The amount to be paid by insurance company in the event of loss is called as ________.

  1. Premium
  2. Sum assured
  3. Insurance
  4. Cost
  

Question 66 :
When Branch 'A' sends goods to Branch 'B' in the books of Branch 'A' debit is given to

  1. Sales return A/c
  2. Branch B A/c
  3. Head office A/c
  4. Purchase return A/c
  

Question 67 :
Credit purchases can be ascertained by preparing _______ A/c.

  1. Debtors
  2. Creditors
  3. Bills receivables
  4. Bills payable
  

Question 68 :
The Head office sends goods to its branch at a loading of 25% on sales

  1. The loading is 1/3rd of cost
  2. The loading is 1/4th of cost
  3. The loading is 50% of cost
  4. The loading 20% of sales
  

Question 69 :
Under stock and Debtors method, Branch stock account helps to ___________.

  1. Ascertain net profit / loss of the branch
  2. Ascertain cost of goods sent to the branch
  3. Ascertain closing stock at the branch
  4. Ascertain Gross profit/loss of the branch
  

Question 70 :
If the consignee gets _________, he will bear bad debts.

  1. Discount
  2. Commission
  3. Del Credere Commission
  4. Interest
  

Question 71 :
With reference to consignment, loading is the difference between ________.

  1. Selling price and cost price
  2. Selling Price and Invoice price
  3. Invoice price and cost price
  4. Invoice price and Net realisable value
  

Question 72 :
If there are damaged or absolete items in stock lost by fire, the amount of loss will be ___________.

  1. Equal to the Cost of normal items
  2. Equal to the Cost of Abnormal items
  3. Equal to the Cost of Normal items + Cost of abnormal items
  4. Equal to the Cost of Normal items - Cost of abnormal items
  

Question 73 :
For recording closing stock held by consignee which account must be debited _______.

  1. Consignment A/c
  2. Consignee A/c
  3. Sales A/c
  4. Consignment stock A/c
  

Question 74 :
In fire insurance compensation is __________.

  1. Equal to policy amount
  2. Stock on the date of fire
  3. Actual loss incurred
  4. Ignored
  

Question 75 :
In consignment Accounting, if discount is treated as Consignment expenses it is debited to ___________.

  1. Consignee A/c
  2. Consignment A/c
  3. Profit - loss A/c
  4. Consignor A/c
  

Question 76 :
The Balancing figure in Memorandum Trading A/c prepared by a trader who has lost goods in fire indicates ___________.

  1. Gross profit on stock lost
  2. Estimated closing stock as on date of fire
  3. Value of fire insurance policy
  4. Amount of claim to be made from Insurance company
  

Question 77 :
Usually, in a single entry system _____________.

  1. Only manual accounts are maintained
  2. Only cash and personal accounts are maintained
  3. Only real accounts are maintained
  4. Only nominal accounts are maintained
  

Question 78 :
Total debtors A/c is prepared to find out ________.

  1. Credit purchases
  2. Cash Purchases
  3. Credit Purchases
  4. Credit sales
  

Question 79 :
Profit can be ascertained from the incomplete records under Single entry by using ____________.

  1. Only Statement of affairs method
  2. Only Conversion method
  3. Either Statement of affairs or conversion method
  4. Neither Statement of affairs nor conversion method
  
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