B.COM FA-1 MCQ's




Question 1 :
Repairs of machinery is a _____ expenditure.

  1. capital
  2. deferred revenue expenditure
  3. revenue
  4. None of the above
  

Question 2 :
Main product is the target product of _____ value.

  1. Inventory
  2. Net realisable
  3. All of the above
  4. significant
  

Question 3 :
Interest on investment is shown on credit side of _____ Account.

  1. Profit - Loss
  2. Trading
  3. Balance Sheet
  4. None of the above
  

Question 4 :
Installed a gas boiler ` 1,25,000

  1. Revenue expenditure
  2. Capital expenditure
  3. Deferred revenue expenditure
  4. None of the above
  

Question 5 :
Inventories are defined as _____ (AS–2 (Revise)).

  1. Current Liability
  2. Assets held for sale in the ordiniary course of business
  3. asset
  4. Non of the above
  

Question 6 :
Depreciation is allocated on the basis of _____ _____.

  1. Area of each Department
  2. light points
  3. No. of worker
  4. Asset Value
  

Question 7 :
Drawings are debited to _____ Account.

  1. Interest
  2. Investment
  3. Capital
  4. None of the above
  

Question 8 :
AS–2 states that, inventory should be valued at

  1. FIFO or weighted average basis
  2. Retail price of standard cost
  3. LIFO
  4. Current replacement cost
  

Question 9 :
Following is an example of an accounting policy

  1. Consistency
  2. Depreciation
  3. Accrual
  4. Going concern
  

Question 10 :
Pulling out old building and rebuilding it ` 2,50,000

  1. Capital
  2. Revenue
  3. D.R. Expenses
  4. None of the above
  

Question 11 :
Payment of penalty is a _____ expenditure.

  1. deferred revenue expenditure
  2. None of the above
  3. revenue
  4. capital
  

Question 12 :
_____ receipts are shown as income in Profit - Loss Account.

  1. deferred revenue expenditure
  2. Capital
  3. Revenue
  4. None of the above
  

Question 13 :
Valuation of Inventory should be done at

  1. Net realisable value
  2. Fair market value
  3. Present value
  4. Replacement value
  

Question 14 :
Closing stock appearing in the Trial Balance is shown in _____.

  1. Balance Sheet
  2. Profit - Loss Account
  3. None of the above
  4. Trading
  

Question 15 :
As per AS–1, disclosure of accounting policies should form part of

  1. Financial statements
  2. Director’s Report
  3. Auditor’s Report
  4. Books of accounts
  

Question 16 :
Replacement of old tyres by new one

  1. Revenue
  2. Capital
  3. D.R. Expenses
  4. None of the above
  

Question 17 :
Carriage on purchase of furniture is _____ expenditure.

  1. None of the above
  2. capital
  3. revenue
  4. deferred revenue expenditure
  

Question 18 :
Sales ratio is used for allocation of :

  1. Income tax
  2. Bad debts
  3. Depreciation
  4. None of the above
  

Question 19 :
Following factors should be considered in selection of accounting policies

  1. Liquidity
  2. Cost
  3. Materiality
  4. Morale of employees
  

Question 20 :
_____ is expenditure on asset held for generation of interest / dividend.

  1. Dividend
  2. Revenue
  3. None of the above
  4. Investment
  

Question 21 :
Cost of inventory does not include

  1. Selling cost
  2. Office overheads
  3. Exceptional waste of material
  4. All of the above
  

Question 22 :
Under _____ stock taking stock is valued periodically.

  1. Periodic
  2. Perpetual
  3. Physical
  4. All of the above
  

Question 23 :
Revenue from Advertising Agency Commission is recognised when

  1. Advertisement appears before the public
  2. Advertisement agreement is signed
  3. Advertisement copy is drafted
  4. None of the above
  

Question 24 :
Under _____ method lots of stock should be identified.

  1. LIFO
  2. Weighted Average
  3. All of the above
  4. FIFO
  

Question 25 :
Repairs and maintenance charges relating to Plant - Machinery are apportioned over different departments according to :

  1. the number of machines in each department
  2. Book value of machines
  3. Area occupied by each machine
  4. None of the above
  

Question 26 :
There is need to _____ change in accounting policies

  1. Accural
  2. Realisation
  3. disclose
  4. All of the above
  

Question 27 :
Following is the example of accounting policy

  1. Consistency
  2. Goodwill treatment
  3. Cost
  4. Conservatism
  

Question 28 :
Brokerage paid on purchase of land ` 10,000

  1. Revenue expenditure
  2. Capital expenditure
  3. Deferred revenue expenditure
  4. None of the above
  

Question 29 :
All indirect expenses are debited to _____ Account.

  1. Profit - Loss
  2. Trading
  3. Balance Sheet
  4. None of the above
  

Question 30 :
Following is not debited to departmental P - L A/c

  1. Carriage
  2. Rent
  3. Salaries
  4. Interest received
  
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