B.COM FA-1 MCQ's




Question 121 :
Freight inward is allocated on the basis of _____.

  1. Sale
  2. Advertising Expenses
  3. Income
  4. Purchases
  

Question 122 :
Valuation of inventories is governed by

  1. Companies Act
  2. Income Tax Act
  3. AS–2
  4. AS–6
  

Question 123 :
Interest on capital is debited to _____ Account.

  1. Trading
  2. Balance Sheet
  3. Profit - Loss
  4. All of the above
  

Question 124 :
Unwritten off deferred revenue expenses are shown in the Balance Sheet on _____ side.

  1. liability
  2. Current Liability
  3. asset
  4. None of the above
  

Question 125 :
Revenue from free sample is recognised when

  1. Goods are distributed free of cost
  2. Goods are used by the buyer
  3. None of the above
  4. Revenue not recognised
  

Question 126 :
Inventories are assets

  1. held for sale in the ordinary course of business
  2. held for long term capital appreciation
  3. held for production of goods
  4. (a) and (c)
  

Question 127 :
Drawings Account shows _____ balance.

  1. debit
  2. credit
  3. None of the above
  4. Opening
  

Question 128 :
AS–2 recognises _____ and _____ Methods.

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

Question 129 :
Under _____ method it is assumed that stock received first is issued first.

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

Question 130 :
Revenue from Hire purchase sale is recognised when

  1. An agreement is signed
  2. Goods are delivered
  3. When last instalment is received
  4. None of the above
  

Question 131 :
Carriage inward is shown in _____ Account.

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

Question 132 :
Salary payable is shown in the Balance Sheet on _____ side.

  1. asset
  2. Current assets
  3. None of the above
  4. liability
  

Question 133 :
Under _____ method, fluctuations in prices are overcome.

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

Question 134 :
Disclosure should form part of

  1. Directors report
  2. Auditor's report
  3. Final accounts
  4. Books of accounts
  

Question 135 :
_____ method is recognised by AS–2.

  1. LIFO
  2. None of the above
  3. Both (a) and (d)
  4. FIFO
  

Question 136 :
Prepaid expenses are shown in balance sheet on _____ side.

  1. Current Liability
  2. None of the above
  3. Assets
  4. ficitious libility
  

Question 137 :
Freight outward is allocated on the basis of _____.

  1. Sales
  2. Purchases
  3. Rent
  4. Depreciation
  

Question 138 :
_____ Accounts show department wise profit / loss.

  1. Departmental
  2. General profit - Loss A/c
  3. Balance Sheet
  4. None of the above
  

Question 139 :
Accounting Standard 1 is

  1. Mandatory
  2. Optional
  3. Recommendatory
  4. No longer valid
  

Question 140 :
Spent on making an entrance for a cinema house ` 1,50,000

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

Question 141 :
Following factors should be considered in selection of accounting policies

  1. Going concern
  2. Growth of business
  3. Substance over form
  4. Solvency
  

Question 142 :
Following is not covered by AS 9

  1. Dividend
  2. Interest
  3. Royalty
  4. Lease Rent
  

Question 143 :
Hire charges of a special machine ` 20,500

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

Question 144 :
Revenue means

  1. Sales
  2. Income
  3. Gains
  4. Gross inflow of benefits from ordinary activities
  

Question 145 :
Paid penalty of ` 1,000 for violation of municipal rules

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

Question 146 :
Income receivable is shown in the Balance Sheet on _____ side.

  1. asset
  2. Current Liability
  3. liability
  4. None of the above
  

Question 147 :
Following is the example of accounting policy

  1. Going Concern
  2. Accrual
  3. Treatment of retirement benefits
  4. Disclosure
  

Question 148 :
Addition of a computer lab to the building ` 60,000

  1. Revenue
  2. Capital
  3. D.R. Expenses
  4. None
  

Question 149 :
Accounting standards are issued by _____.

  1. CEO
  2. Director
  3. All of the above
  4. ICAI
  

Question 150 :
Lighting charges are apportioned over the departments on the basis of :

  1. Number of light points
  2. Cost of machines
  3. Sales
  4. None of the above
  
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