Question 501 : Following is not debited to departmental P & L A/c
- Carriage
- Rent
- Salaries
- Interest received
Question 502 : Depreciation on machinery is allocated on the basis of value of machinery in each department.
- True
- False
Question 503 : Direct expenses are assigned to departments on the basis of
- Actual expenses incurred
- Estimated expenses
- Percentage of purchases
- Percentage of sales
Question 504 : Cost of insurance is allocated on the basis of purchases of each department.
- True
- False
Question 505 : Non departmental items of expenses are
- Charged to general P & L A/c
- Charged to departments on the basis of sales
- Charged to departments on the basis of fixed assets
- None of the above
Question 506 : Employee welfare expenses are allocated on the basis of number of employees.
- True
- False
Question 507 : Cost of H.R. Department is allocated on the basis of _____ _____ _____ .
- Area of each Department
- Sale of each Department
- number of workers
- None of the above
Question 508 : Following is not allocated on the basis of turn over
- Carriage on purchases
- Carriage on sales
- Advertising
- Bad Debts
Question 509 : Depreciation is allocated on the basis of value of assets.
- True
- False
Question 510 : General management expenses are charged to general P & L A/c.
- True
- False
Question 511 : Repairs and maintenance charges relating to Plant & Machinery are apportioned over different departments according to :
- the number of machines in each department
- Book value of machines
- Area occupied by each machine
- None of the above
Question 512 : Expenses traceabel with the departments are called direct expenses.
- True
- False
Question 513 : Sales of each department is the basis of allocation of :
- Selling Expenses
- Advertising Expenses
- (a) and (b)
- None of the above
Question 514 : Expenses regarding purchases are allocated on the basis of turnover.
- True
- False
Question 515 : Staff welfare expenses are allocated on the basis of _____ _____ _____ of departments.
- Sale of each Department
- Area of each Department
- number of workers
- None of the above
Question 516 : Sales ratio is used for allocation of :
- Income tax
- Bad debts
- Depreciation
- None of the above
Question 517 : Depreciation is allocated to departments in equal proportion.
- True
- False
Question 518 : Following is not debited to Departmental P & L A/c
- Rent
- Salaries
- Lighting charges
- Carriage on purchases
Question 519 : Rent and rates are apportioned to different departments on the basis of :
- Area
- Number of employees
- Sales of each department
- None of the above
Question 520 : Depreciation is apportioned equally among all the departments.
- True
- False
Question 521 : Items of expenses not connected with any department are :
- Charged to departments on the basis of total sales
- Charged to the General Profit & Loss Account
- Charged to departments on the basis of fixed assets employed
- None of the above
Question 522 : Preparation of Departmental Trading Account is mandatory.
- True
- False
Question 523 : Following is a direct expense in departmental accounting
- Advertising
- Office expenses
- Depreciation
- Purchases
Question 524 : A separate balance sheet is prepared for each department.
- True
- False
Question 525 : Stock Reserve for unrealised profit for interdepartmental transfer of goods is charged to General Profit & Loss Account.
- True
- False
Question 526 : Rent is allocated on the basis of _____.
- Area
- Time
- Purchase
- Sales
Question 527 : Welfare expenses should be charged to departments on the basis of number of workers in each department.
- True
- False
Question 528 : Many organisations keep separate record of each department.
- True
- False
Question 529 : Departmental Net Profit is transferred to _____.
- Trading A/c
- Balance Sheet
- None of the above
- General P & L A/c
Question 530 : Loss of goods by fire in a department is considered loss of that respective department.
- True
- False
Question 531 : Freight inward is allocated on the basis of _____.
- Sale
- Advertising Expenses
- Income
- Purchases
Question 532 : Factory expenses are allocated on the basis of material purchased.
- True
- False
Question 533 : Departmental net profit is transferred to general P & L A/c.
- True
- False
Question 534 : Rent of premises is allocated on the basis of number of employees of each department.
- True
- False
Question 535 : Departmental expenses may be _____ or _____.
- Direct or Indirect
- Office or Factory
- fixed or flexible
- None of the above
Question 536 : Contribution to P.F. is allocated on the basis of number of employees.
- True
- False
Question 537 : Expenses regarding purchases are allocated on the basis of _____.
- Sales
- Area
- Purchases
- Time
Question 538 : Depreciation is allocated on the basis of _____ _____.
- Area of each Department
- light points
- No. of worker
- Asset Value
Question 539 : Advertising expenses are allocated on the basis of
- Purchases
- Sales
- H.P.
- Light Points
Question 540 : Depreciation on plant is divided equally over the different departments.
- True
- False
Question 541 : Provision for unrealised profit is charged to dept. P & L A/c.
- True
- False
Question 542 : Cost of electric power should be apportioned over different departments according to :
- H.P. of motors
- No. of light points
- Cost of machines
- None of the above
Question 543 : Following is not allocated in the ratio of number of employees
- Bonus
- Salaries
- Rent
- All of the above
Question 544 : Interest = Hire purchase price _____ _____.
- Down Payment
- Cash Price
- Advance payment
- None of the above
Question 545 : Under Hire purchase, instalment is treated as hire.
- True
- False
Question 546 : Hire purchase price = _____ _____.
- Down Payment, Interest
- Principal, Interest
- None of the above
- Cash Price, Interest
Question 547 : _____ _____ is the price at which goods are purchased today for full payment.
- Cash Price
- H. P. Price
- Outstanding price
- None of the above
Question 548 : The seller of goods on H.P. is _____ _____.
- Buyer
- None of the above
- Customer
- Hire vendor
Question 549 : Refer to Q. No. 20. The initial payment is
- ` 10,000
- ` 20,000
- ` 40,000
- None
Question 550 : Under hire purchase system purchaser becomes the owner of goods on payment of
- Down payment
- Last intalment
- Interest
- None of the above
Question 551 : Hire purchase price includes _____ and _____.
- Principal, Interest
- Down Payment, Interest
- Cash Price, Interest
- None of the above
Question 552 : _____ _____ _____ method is known as credit purchase method.
- Cash Price
Question 553 : Instalment is equal to
- Principal + Interest
- Principal Interest
- Cash Price + Interest
- None of the above
Question 554 : Buyer of goods under Hire purchase is called as a
- Hirer
- Buyer
- Customer
- None of the above
Question 555 : On Hire Purchase the ownership is transferred on payment of _____ instalment.
- First
- Last
- Down payment is made
- Agreement is signed
Question 556 : Fullcash price method is known as credit purchase method.
- True
- False
Question 557 : Cash price includes interest.
- True
- False
Question 558 : In hire purchase agreement vendor pays interest to buyer.
- True
- False
Question 559 : Refer to Q. No. 20. The cash price is
- ` 50,000
- ` 10,000
- ` 60,000
- None
Question 560 : Hire purchase price is higher than cash price.
- True
- False
Question 561 : In hire purchase buyer becomes the owner of asset on signing the agreement.
- True
- False
Question 562 : Under hire purchase agreement interest is charged on _____ cash price.
- Prepaid
- Actual
- Outstanding
- All of the above
Question 563 : Down payment is payment made down the table.
- True
- False
Question 564 : Initial payment made on signing the agreement is
- Down payment
- Cash price
- Hire purchase price
- Interest
Question 565 : Cash price must be mentioned in the hire purchase agreement.
- True
- False
Question 566 : Interest is always calculated on outstanding Cash Price.
- True
- False
Question 567 : Amount paid at the time of taking delivery of goods is
- Cash payment
- Down payment
- Advance payment
- None of the above
Question 568 : Hire purchase agreement must have minimum duration of 5 years.
- True
- False
Question 569 : Excess of H.P. price over cash price is _____.
- Interest
- Down Payment
- Cash Payment
- None of the above
Question 570 : Cash price method is known as _____ _____ method.
- Asset Accrual Method
- None of the above
Question 571 : Under hire purchase system interest is charged on outstanding cash price.
- True
- False
Question 572 : Depreciation is charged on cash price.
- True
- False
Question 573 : Cash price is the purchase price payable if full payment is made immediately.
- True
- False
Question 574 : Possession of goods is transferred on _____ the agreement.
- Cancelling
- Making
- Signing
- All of the above
Question 575 : Hire purchase instalment consists of
- Cash price
- Interest
- Part payment of cash price plus interest
- All of the above
Question 576 : Actual cash price method is known as Asset Accrual method.
- True
- False
Question 577 : Under hire purchase system depreciation is provided on hire purchase price.
- True
- False
Question 578 : Under Full Cash Price method the asset is recorded at
- Hire purchase price
- Cash price
- Down payment
- None of the above
Question 579 : Hire purchase price is known as cash price.
- True
- False
Question 580 : X Ltd. purchased a car from Y Ltd. on hire purchase basis. Cash price is ` 50,000 Initial payment ` 10,000, balance in four instalments with 10% interest. The hirer is
- X Ltd.
- Y Ltd.
- X and Y Ltd.
- None
Question 581 : Refer to Q. No. 20. The hire vendor is
- X Ltd
- Y Ltd.
- Either X Ltd. or Y Ltd.
- None of them
Question 582 : Under the purchase system depreciation is provided on cash price.
- True
- False
Question 583 : Down payment is the initial payment made on signing the agreement.
- True
- False
Question 584 : There is no difference between hire purchase price and cash price.
- True
- False
Question 585 : In hire purchase ownership is never transferred to the buyer
- True
- False
Question 586 : Hire purchase price is _____ than cash price.
- Lower
- Higher
- None of the above
- Flexible
Question 587 : Depreciation is charged on asset at a certain rate on
- Down Payment
- Cash price
- Principal
- None of the above
Question 588 : Under hire purchase agreement the purchaser agrees to pay to the vendor
- Interest only
- Cash price only
- Cash price and interest
- None of the above
Question 589 : Under hire purchase system, depreciation is provided by hire purchaser on
- Cash price
- H.P. price
- Down payment
- None of the above
Question 590 : Purchase of a machinery without making full payment immediately is called as
- Cash purchase
- On line purchase
- Hire purchase
- None of the above
Question 591 : In Instalment sale buyer becomes the owner of asset after payment of last payment.
- True
- False
Question 592 : Hire purchase price excludes interest.
- True
- False
Question 593 : Under hire purchase agreement right of ownership is not passed on to the purchaser unless.
- Agreement is signed
- Last instalment is paid
- Down payment is made
- None of the above
Question 594 : Generally costly items are sold on hire purchase basis.
- True
- False
Question 595 : Cash price is included in hire purchase price.
- True
- False
Question 596 : Hire purchase price is the purchase price if full payment is made immediately.
- True
- False
Question 597 : In hire purchase ownership is transferred on payment of _____ _____.
- Last Instalment
- first Instalment
- Agreement is signed
- Downpayment is made
Question 598 : Interest in hire purchase transation is charged on cash price which is
- Full cash price
- Outstanding cash price
- Down payment
- None of the above
Question 599 : Cheaper items are not purchased on hire purchase basis.
- True
- False
Question 600 : Hire purchase price is equal to
- Cash price
- Cash Price Interest
- Cash price + Interest
- None of the above
Question 601 : _____ _____ is initial payment.
- Cash Price
- Down Payment
- Interest
- H. P. Price
Question 602 : The feature of hire purchase is
- User ultimately become the owner
- Instalment includea principal only
- User does not pay any interest
- None of the above
Question 603 : In case of default in payment the seller under hire purchase can
- Take back possession of goods
- Take legal action against the buyer
- Charge penalty to the buyer
- None of the above
Question 604 : Initial amount paid on signing the agreement is called _____ _____.
- Cash Price
- H. P. Price
- Down Payment
- None of the above
Question 605 : The person who sells the goods on hire purchase is a hire buyer.
- True
- False
Question 606 : Refer to Q. No. 20. The interest for 1st instalment is
- ` 4,000
- ` 5,000
- ` 9,000
- None of the above
Question 607 : The seller gets the right to take back _____ of goods in case of default in payment.
- Replacement
- Possession
- None of the above
- Amount
Question 608 : Under Instalment system purchaser becomes the owner of goods on
- Signing the agreement
- Payment of last instalment
- Payment of cash price
- None of the above
Question 609 : In instalment sale ownership is transferred on signing the agreement.
- True
- False
Question 610 : Difference between hire purchase price and cash price is interest.
- True
- False
Question 611 : Initial payment on signing the agreement is called Down Payment.
- True
- False
Question 612 : Right of ownership is transferred to the buyer on payment of first instalment under Hire Purchase system.
- True
- False
Question 613 : The buyer of goods on H.P. basis is _____.
- Customer
- Buyer
- None of the above
- Hirer
Question 614 : The last instalment in hire purchase includes
- Cash price only
- Interest only
- Cash price and interest
- None of the above
Question 615 : Generally _____ items are sold on hire purchase basis.
- Costly
- Factory
- Office
- None of the above
Question 616 : Buyer does not provide depreciation on asset till he becomes the owner of asset.
- True
- False
Question 617 : The seller can take back possession of the goods in case of default in payment.
- True
- False
Question 618 : Depreciation is charged at a certain rate on _____ _____ of the asset.
- Down Payment
- Cash Price
- Principal
- None of the above
Question 619 : Hire purchase price is equal to cash price plus interest.
- True
- False
Question 620 : Depreciation is provided on _____ _____.
- Principal
- Down Payment
- Cash Price
- None of the above
Question 621 : Hire purchase price means amount payable by the hirer which consists of
- Cash Price + Interest
- Cash Price Interest
- Cash Price + Down Payment
- Interest + Principal