BCOM-AFM-1 MCQ

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Question 401 : Bank overdraft is a _____.

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

Question 402 : Income receivable is shown in the Balance Sheet on _____ side.

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

Question 403 : Sales are equal to

  1. Cost of goods sold + Profit
  2. Cost of goods sold Gross profit
  3. Gross profit Cost of goods sold
  4. None of the above
  

Question 404 : 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 405 : Prepaid expenses are shown in balance sheet on _____ side.

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

Question 406 : Expenses due but not paid appear in the Balance Sheet on asset side.

  1. True
  2. False
  

Question 407 : Which of the following account is not closed?

  1. Expenses
  2. Interest received
  3. Prepaid insurance
  4. Drawings
  

Question 408 : Carriage inward is shown in _____ A/c.

  1. Profit & Loss
  2. Balance Sheet
  3. Trading A/c
  4. All of the above
  

Question 409 : Live stock is

  1. Current asset
  2. Fixed asset
  3. Fictitious asset
  4. Intangible asset
  

Question 410 : Trading Account always shows credit balance.

  1. True
  2. False
  

Question 411 : Gross profit is transferred to _____ A/c.

  1. P & L A/c
  2. Capital A/c
  3. Sales A/c
  4. Purchase A/c
  

Question 412 : Closing stock of finished goods is shown on

  1. Credit side of Manufacturing Account
  2. Credit side of Trading Account
  3. Credit side of Profit & Loss Account
  4. None of the above
  

Question 413 : WIP indicates

  1. Partly finished goods
  2. Partly finished repairs
  3. Partly constructed factory
  4. Raw material
  

Question 414 : Carriage on purchase of machinery is debited to Trading Account.

  1. True
  2. False
  

Question 415 : Profit & Loss Account shows financial position of an organisation.

  1. True
  2. False
  

Question 416 : Reserve for discount on debtors shows a credit balance.

  1. True
  2. False
  

Question 417 : Over valuation of closing stock shows more gross profit.

  1. True
  2. False
  

Question 418 : Unearned commission is a liability.

  1. True
  2. False
  

Question 419 : Opening stock of finished goods is shown on debit side of

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

Question 420 : Wages paid for erection of machinery are debited to Profit & Loss Account.

  1. True
  2. False
  

Question 421 : Outstanding salaries are shown as

  1. An expense
  2. A liability
  3. An asset
  4. None of the above
  

Question 422 : Goods given as sample should be credited to

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

Question 423 : Trade mark is a

  1. Current asset
  2. Fixed asset
  3. Fictitious asset
  4. None of the above
  

Question 424 : 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 425 : Net loss is _____ from capital.

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

Question 426 : Manufacturing Account always shows :

  1. Debit balance
  2. Credit balance
  3. No balance
  4. None of the above
  

Question 427 : Purchase of car is shown on debit side of Trading Account.

  1. True
  2. False
  

Question 428 : Every adjustment is recorded twice.

  1. True
  2. False
  

Question 429 : Carriage inward should be shown in

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

Question 430 : Sale of old furniture is credited to Trading Account.

  1. True
  2. False
  

Question 431 : Interest on investment is shown on credit side of _____ Account.

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

Question 432 : Drawings Account shows _____ balance.

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

Question 433 : Carriage inward is shown in _____ Account.

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

Question 434 : Balance Sheet gives information regarding :

  1. Result of operations
  2. Financial position on a particular date
  3. operating efficiency of the firm
  4. None of the above
  

Question 435 : Current assets are shown in the business for a longer period.

  1. True
  2. False
  

Question 436 : Live stock is a current asset.

  1. True
  2. False
  

Question 437 : RDD is made on debtors after writing off bad debts.

  1. True
  2. False
  

Question 438 : Classification of assets and liabilities as current or long term depends on :

  1. order of listing in the ledger
  2. whether they appear on Balance Sheet or the income statement.
  3. Relative liquidity of the items
  4. Format of balance sheet
  

Question 439 : Capital Account always shows credit balance.

  1. True
  2. False
  

Question 440 : Interest on drawings is credited to _____ Account.

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

Question 441 : For a sugar mill, sugar is a

  1. Raw material
  2. WIP
  3. Finished goods
  4. Assets
  

Question 442 : Interest on capital is debited to Profit & Loss Account.

  1. True
  2. False
  

Question 443 : Proprietor is entitled to a salary.

  1. True
  2. False
  

Question 444 : Closing stock is valued at cost or at market value whichever is lower.

  1. True
  2. False
  

Question 445 : Excess of income over expenditure is a net profit.

  1. True
  2. False
  

Question 446 : Profit & Loss Account shows revenue expenses and losses for the year.

  1. True
  2. False
  

Question 447 : 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 448 : Capital Account always shows credit balance.

  1. True
  2. False
  

Question 449 : Total assets must be equal to total liabilities.

  1. True
  2. False
  

Question 450 : Discount allowed is shown on

  1. Debit side of Profit & Loss Account
  2. Debit side of Trading Account
  3. Asset side of Balance Sheet
  4. Liability side
  

Question 451 : Balance Sheet is an account.

  1. True
  2. False
  

Question 452 : Goodwill is not a _____ asset.

  1. fictitious
  2. fixed
  3. current
  4. None of the above
  

Question 453 : WIP in the books of a manufacturer is

  1. Partly finished goods
  2. Finished goods
  3. Raw material
  4. None of the above
  

Question 454 : Closing stock appearing in Trial Balance should be shown in

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

Question 455 : Balance Sheet is a sheet of expenses and losses.

  1. True
  2. False
  

Question 456 : Salary payable is shown in balance sheet on _____ side.

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

Question 457 : Outstanding salary is a nominal account.

  1. True
  2. False
  

Question 458 : Outstanding salary is an income.

  1. True
  2. False
  

Question 459 : Income received in advance is an asset.

  1. True
  2. False
  

Question 460 : Discount represents

  1. Discount allowed
  2. Discount received
  3. Asset
  4. Liability
  

Question 461 : Cost of goods sold can be computed by adding opening inventory and net purchases and subtracting :

  1. Net Sales
  2. Sales discount
  3. Closing Stock
  4. Net Purchases
  

Question 462 : Following items are used to calculate departmental profit except

  1. Debtors
  2. Sales
  3. Purchases
  4. Sales return
  

Question 463 : Lighting charges are allocated on the basis of no. of employees.

  1. True
  2. False
  

Question 464 : Repairs to machinery isapportioned over departments according to

  1. No. of machines
  2. Value of machinery
  3. Area occupied by each machine
  4. H.P. of machines
  

Question 465 : Departmental expenses may be direct or indirect.

  1. True
  2. False
  

Question 466 : Power is allocated on the basis of

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

Question 467 : Freight inward is allocated on the basis of purchases.

  1. True
  2. False
  

Question 468 : Depreciation is allocated on the basis of

  1. Value of Assets
  2. Area
  3. Light points
  4. No of workers
  

Question 469 : Departmental accounts are necessary for evaluating departmental efficiency.

  1. True
  2. False
  

Question 470 : All expenses are allocated among the departments on the basis of turnover.

  1. True
  2. False
  

Question 471 : Power is allocated on the basis of H.P. of machines in each department.

  1. True
  2. False
  

Question 472 : 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 473 : Welfare expenses are allocated on the basis of _____ _____.

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

Question 474 : Following is allocated in the ratio of number of employees

  1. Welfare expenses
  2. Rent
  3. Carriage
  4. Advertising
  

Question 475 : Indirect expenses are deducted from departmental gross profit to get departmental net profit.

  1. True
  2. False
  

Question 476 : Freight outward is allocated on the basis of _____.

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

Question 477 : Following is debited to general P & L A/c

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

Question 478 : Departmental Trading A/c is prepared to meet the requirement of law.

  1. True
  2. False
  

Question 479 : Lighting charges are allocated on the basis of H.P. of machines in each department.

  1. True
  2. False
  

Question 480 : Loss by fire in a department is treated as expenditure of that department.

  1. True
  2. False
  

Question 481 : _____ Accounts show department wise profit / loss.

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

Question 482 : Bad debts are charged to General Profit & Loss Account.

  1. True
  2. False
  

Question 483 : Rate of gross profit indicates profitability of each department.

  1. True
  2. False
  

Question 484 : Freight outward is allocated on the basis of purchases.

  1. True
  2. False
  

Question 485 : Expenses traceable with the departments are called _____.

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

Question 486 : Rent, rates and taxes are allocated on the basis of _____ of each department.

  1. Sale
  2. purchases
  3. None of the above
  4. area
  

Question 487 : Departmental reports help to evaluate performance of the departments.

  1. True
  2. False
  

Question 488 : Management expenses are charged to General Profit & Loss Account.

  1. True
  2. False
  

Question 489 : Contribution to P.F. is allocated on the basis of number of employees in each department.

  1. True
  2. False
  

Question 490 : Freight outward is allocated on the basis of _____ of each department.

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

Question 491 : Departmental reports evaluate the performance of departmental managers.

  1. True
  2. False
  

Question 492 : Cost of Stores Department is allocated on the basis of purchases of each department.

  1. True
  2. False
  

Question 493 : Cost of electric power should be apportioned over different departments on the basis of :

  1. H.P. of machines
  2. No. of light points
  3. H.P. / Machine hours
  4. None of the above
  

Question 494 : 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
  

Question 495 : Fright inward is allocated on the basis of sales of each department.

  1. True
  2. False
  

Question 496 : Rent of building is allocated on the basis of area.

  1. True
  2. False
  

Question 497 : In departmental accounting each department is not treated as a separate entity for the purpose of recording and reporting.

  1. True
  2. False
  

Question 498 : Carriage inward is allocated on the basis of _____ of each department.

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

Question 499 : Direct expenses are traceable with the departments.

  1. True
  2. False
  

Question 500 : Following is not debited to General P & L A/c

  1. Power
  2. Audit fees
  3. Interest on bank loan
  4. None of the above
  
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