B.COM FA-1 MCQ's




Question 151 :
_____ method is recognised by AS 2.

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

Question 152 :
Significant accounting policies are disclosed

  1. Along with financial statementss
  2. In the books of accounts
  3. Along with balance sheet
  4. In the accounting software
  

Question 153 :
Received on account of issue of debentures 4,00,000

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

Question 154 :
Compliance of Accounting Standard is _____.

  1. Recommendatory
  2. Optional
  3. None of the above
  4. Mandatory
  

Question 155 :
Trade discount should be

  1. Added to revenue
  2. Ignored
  3. Deducted from revenue
  4. Added to cost
  

Question 156 :
Legal expenses incurred in raising debenture loans

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

Question 157 :
Power is allocated on the basis of

  1. H.P
  2. No of light points
  3. Area
  4. No of employees
  

Question 158 :
Net loss is transferred to _____ A/c.

  1. Capital A/c
  2. Sales A/c
  3. Purchase A/c
  4. None of the above
  

Question 159 :
Rent and rates are apportioned to different departments on the basis of :

  1. Area
  2. Number of employees
  3. Sales of each department
  4. None of the above
  

Question 160 :
Under _____ method closing inventory is valued at latest rate.

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

Question 161 :
Following is not allocated on the basis of turn over

  1. Carriage on purchases
  2. Carriage on sales
  3. Advertising
  4. Bad Debts
  

Question 162 :
Net loss is _____ from capital.

  1. added
  2. Divided
  3. deducted
  4. None of the above
  

Question 163 :
Factors to be considered while selecting accounting policies

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

Question 164 :
As per AS–2 (Revised) ____ approach for costing inventories has been eliminated.

  1. Direct labour
  2. Factory overheads
  3. Direct, costing,
  4. All of the above
  

Question 165 :
Disclosure of Accounting Policies should form part of _____ _____.

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

Question 166 :
Freight outward is allocated on the basis of _____ of each department.

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

Question 167 :
As per AS–2, cost of inventories should include

  1. All cost of purchases
  2. All cost of purchase, cost of conversion and cost incurred to bring the inventory to the present location
  3. Cost of purchases and selling
  4. Cost of purchases and transport on sale
  

Question 168 :
Salary payable is shown in balance sheet on _____ side.

  1. Liability
  2. Fixed asset
  3. Current Asests
  4. Fictious assets
  

Question 169 :
Expenses incurred for obtaining a licence to start the factory ` 10,000

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

Question 170 :
Depreciation can be calculated either by ____ line method or _____ value methods.

  1. None of the above
  2. straight, written down
  

Question 171 :
Materiality has to be considered in selection of _____ _____.

  1. Final Statements
  2. Fundamental accounting assumptions
  3. Accounting Policies
  4. None of the above
  

Question 172 :
As per AS 2 while valuing inventories sales commission should be

  1. Deducted in arriving at NRV
  2. Added to cost
  3. Deducted from cost
  4. None
  

Question 173 :
Bank overdraft is a _____.

  1. Assets
  2. Expenses
  3. liability
  4. All of the above
  

Question 174 :
As per AS–1, disclosure should be made of

  1. Significant accounting policies
  2. Assumptions in accounting
  3. Accounting principles
  4. Accounting policies
  

Question 175 :
Carriage outward is shown in _____ A/c.

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

Question 176 :
Undervaluation of stock _____ profits.

  1. Inflates
  2. Deflates
  3. All of the above
  4. Maximise
  

Question 177 :
Net profit is _____ to capital.

  1. deducted
  2. Divided
  3. added
  4. None of the above
  

Question 178 :
The purpose of AS 1 is to establish a Standard as to

  1. The preparation of final statements
  2. Fundamental accounting assumptions
  3. Desirable accounting policies
  4. Disclosure of accounting policies
  

Question 179 :
There is _____ to establish accounting standards.

  1. No need
  2. Important
  3. None of the above
  4. need
  

Question 180 :
As per AS–2, inventory covers

  1. Live stock
  2. Goods purchased for resale
  3. Investment held as stock in trade
  4. WIP in construction contracts
  
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