B.COM FA-1 MCQ's




Question 91 :
Following is debited to general P - L A/c

  1. Power
  2. Rent
  3. Audit fees
  4. None of the above
  

Question 92 :
The _____ statements are prepared from the books of accounts and other records maintained by the enterprise.

  1. Leagal
  2. Non–Leagal
  3. None of the above
  4. financial
  

Question 93 :
Items of expenses not connected with any department are :

  1. Charged to departments on the basis of total sales
  2. Charged to the General Profit - Loss Account
  3. Charged to departments on the basis of fixed assets employed
  4. None of the above
  

Question 94 :
Rent is allocated on the basis of _____.

  1. Area
  2. Time
  3. Purchase
  4. Sales
  

Question 95 :
_____ _____ _____ is followed when there are fluctuations in prices.

  1. FIFO
  2. LIFO
  3. None of the above
  4. WAM
  

Question 96 :
Demolition cost of old building is a _____ _____ _____ .

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

Question 97 :
In _____ method, Balance Sheet shows current cost of stock.

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

Question 98 :
Goods distributed as free sample are credited to _____ A/c.

  1. Trading
  2. P - L A/c
  3. Balance Sheet
  4. None of the above
  

Question 99 :
Under periodic inventory system, closing stock is valued

  1. By actually counting the stock on a particular date
  2. From the stores ledger
  3. By deducting value of sales from value of purchases
  4. On estimate basis
  

Question 100 :
Purchase of tools for servicing.

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

Question 101 :
In consignment revenue is recognised when

  1. Goods are sent on consignment
  2. Goods are received by the consignee
  3. Goods are sold out by the consignee
  4. All of the above
  

Question 102 :
Inventories are valued at _____ of cost and net realisable value.

  1. lower
  2. Upper
  3. Exact
  4. None of the above
  

Question 103 :
Overvaluation of stock _____ profits.

  1. Minimise
  2. Inflates
  3. None of the above
  4. Deflates
  

Question 104 :
Paid to an advocate to defend a suit claiming that the factory site belongs to the firm, the suit was unsuccessful

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

Question 105 :
_____ expenditure is non-recurring.

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

Question 106 :
Cost of transport of material

  1. Increases landing cost of material
  2. Increases conversin cost
  3. Decreases variable cost
  4. None of the above
  

Question 107 :
In _____ method, stock is over valued when the prices are rising.

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

Question 108 :
Cost of repairing the building

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

Question 109 :
Expenses traceable with the departments are called _____.

  1. Direct Income
  2. Welfare Expenses
  3. Direct Expenses
  4. None of the above
  

Question 110 :
AS–2 defines inventory as

  1. Current assets
  2. Current liabilities
  3. Fixed assets
  4. Assets held for sale in the ordinary course of business
  

Question 111 :
Inventory consists of finished goods held for sale in the _____ course of business.

  1. ordinary
  2. Legal
  3. None of the above
  4. Compulsory
  

Question 112 :
Under _____ inventory system, stock is valued by physical stock taking.

  1. Perpetual
  2. None of the above
  3. both (a) - (d)
  4. Periodic
  

Question 113 :
Dividend is recognised revenue when

  1. It is recommended
  2. It is declared
  3. It is appropriated
  4. It is paid
  

Question 114 :
Recovery of bad debts during the year ` 3,500

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

Question 115 :
It is necessary to standardise the accounting principles and policies for ensuring

  1. Consistency
  2. Transperancy
  3. Comparability
  4. All of the above
  

Question 116 :
Received interest on investment ` 2,500

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

Question 117 :
The AS deals with revenue recognition is

  1. AS–1
  2. AS–9
  3. AS–3
  4. AS–10
  

Question 118 :
AS–9 does not deal with revenue arising from

  1. Sale of goods
  2. Interest
  3. Service contracts
  4. Construction contracts
  

Question 119 :
Amount received on sale of goods is a _____ receipt.

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

Question 120 :
Following is an example of accounting policy

  1. Realisation
  2. Accrual
  3. Entity
  4. Valuation of fixed assets
  
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