B.COM FA-1 MCQ's




Question 61 :
Commission received is a _____ receipt.

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

Question 62 :
_____ expenditure is recurring.

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

Question 63 :
As per AS 1 the effect of any change in accounting policy on the value of any item in the final accounts should

  1. Be reported to directors
  2. Be reported to CEO
  3. Be disclosed
  4. Be ignored
  

Question 64 :
Advertising is a _____ expenditure.

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

Question 65 :
Carriage inward is allocated on the basis of _____ of each department.

  1. sales
  2. purchases
  3. Expenses
  4. Income
  

Question 66 :
It is difficult to follow a _____ accounting policy in all the circumstances.

  1. uniform
  2. Transperancy
  3. None of the above
  

Question 67 :
Inventories do _____ include machinery.

  1. Partialy
  2. not
  3. Mostly
  4. None of the above
  

Question 68 :
Weighted Average method can be used under

  1. Only periodic inventory system
  2. Periodic and perpetual inventory systems
  3. Only perpetual inventory system
  4. None of the above
  

Question 69 :
Took loan from SBI ` 5,00,000

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

Question 70 :
AS–2 is not applicable to _____ _____.

  1. Mineral Oils
  2. Machinery Spares
  3. Live stock
  4. None of the above
  

Question 71 :
Wages paid for installation of machinery is a _____ expenditure.

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

Question 72 :
Following factors should be considered in selection of accounting policies

  1. Consistency
  2. Prudence
  3. Dual aspect
  4. Cost
  

Question 73 :
Supervision charges should be apportioned over the different departments on the basis of :

  1. Time devoted for supervision
  2. Area occupied by each department
  3. Sales of each department
  4. None of the above
  

Question 74 :
_____ method is not recognised by AS 2.

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

Question 75 :
Overhauling of machinery is a _____ expenditure.

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

Question 76 :
Prepaid insurance is shown on _____ side of the Balance Sheet.

  1. Liability
  2. asset
  3. Trading A/c debit
  4. Profit - Loss A/c credit
  

Question 77 :
AS per AS 2 cost of inventory should not include

  1. Interest on loan
  2. Direct Material
  3. Direct Labour
  4. Overheads
  

Question 78 :
In _____ method, stock is valued at oldest rate.

  1. FIFO
  2. LIFO
  3. Weighted Average
  4. None of the above
  

Question 79 :
Staff welfare expenses are allocated on the basis of _____ _____ _____ of departments.

  1. Sale of each Department
  2. Area of each Department
  3. number of workers
  4. None of the above
  

Question 80 :
While calculating cost of inventory abnormal loss of material

  1. Should not be included in cost of inventories
  2. Should be added to cost of inventories
  3. Should be deducted from cost of inventories
  4. None of the above
  

Question 81 :
Revenue from dividend is recognised when

  1. Dividend is received
  2. Right to receive dividend is established
  3. Amount is credited to Bank Account
  4. Dividend warrant is despatched by the company
  

Question 82 :
Welfare expenses are allocated on the basis of _____ _____.

  1. Employees
  2. purchases
  3. Sales
  4. Rent
  

Question 83 :
Heavy legal expenses are _____ _____ _____ .

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

Question 84 :
Cost of inventory should include

  1. Purchase price and cost incurred to bring the inventory to present location
  2. Purchase price only
  3. Freight only
  4. Cost of conversion only
  

Question 85 :
Trade discount should be

  1. Deducted from revenue
  2. Added to revenue
  3. Ignored
  4. None of the above
  

Question 86 :
Bad debt recovery is a _____ receipt.

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

Question 87 :
As per AS–2, inventory covers

  1. Machinery spares
  2. WIP in case of service providers
  3. Materials or suppliers used in production
  4. Stock of mineral oil
  

Question 88 :
_____ _____ are laid down by law.

  1. Auditor's report
  2. Directors report
  3. Accounting Standards
  4. None of the above
  

Question 89 :
Departmental expenses may be _____ or _____.

  1. Direct or Indirect
  2. Office or Factory
  3. fixed or flexible
  4. None of the above
  

Question 90 :
Received from X Ltd. an invoice for ` 3,500 for repairs of walls of the office premises

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