BCOM Financial Accounting 1 MCQ

home MCQ Questions & Answer


Question 1: Main product is the target product of _____ value.

  1. Inventory
  2. Net realisable
  3. All of the above
  4. significant
  

Question 2: Dividend is recognised revenue when

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

Question 3: _____ method is recognised by AS 2.

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

Question 4: Net loss is _____ from capital.

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

Question 5: Bank overdraft is a _____.

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

Question 6: Following is not an inventory

  1. Spare Parts
  2. Finished Goods
  3. Raw Material
  4. WIP
  

Question 7: Inventory covers

  1. WIP in construction work
  2. Biological Assets
  3. WIP in service organisation
  4. None of the above
  

Question 8: 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 9: Inventories may be valued by the _____ methods.

  1. different
  2. Written down
  3. Stright
  4. None of the above
  

Question 10: Interest on investment is shown on credit side of _____ Account.

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

Question 11: Closing stock appearing in the Trial Balance is shown in _____.

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

Question 12: Repairs and maintenance charges relating to Plant & Machinery are apportioned over different departments according to :

  1. the number of machines in each department
  2. Book value of machines
  3. Area occupied by each machine
  4. None of the above
  

Question 13: _____ receipts are shown in Balance Sheet.

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

Question 14: Gross profit is transferred to _____ Account.

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

Question 15: If standards are not followed, the _____ has to make a disclosure in the accounting report in case of failure.

  1. Manager
  2. Employee
  3. auditor
  4. None of the above
  

Question 16: Took loan from SBI ` 5,00,000

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

Question 17: While calculating cost of inventory abnormal loss of material

  1. Should not be included in cost of inventories
  2. Should be added to cost of inventories
  3. Should be deducted from cost of inventories
  4. None of the above
  

Question 18: Following is debited to general P & L A/c

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

Question 19: Inventories are valued at _____ of cost and net realisable value.

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

Question 20: 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 21: 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 22: _____ method is recognised by AS–2.

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

Question 23: Revenue means

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

Question 24: 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 25: Income receivable is shown in the Balance Sheet on _____ side.

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

Question 26: Following is the example of accounting policy

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

Question 27: Addition of a computer lab to the building ` 60,000

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

Question 28: Accounting standards are issued by _____.

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

Question 29: 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 30: 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 31: 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 32: Compliance of Accounting Standard is _____.

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

Question 33: Trade discount should be

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

Question 34: Legal expenses incurred in raising debenture loans

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

Question 35: Power is allocated on the basis of

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

Question 36: 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 37: 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 38: Under _____ method closing inventory is valued at latest rate.

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

Question 39: Following is not allocated on the basis of turn over

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

Question 40: Factors to be considered while selecting accounting policies

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

Question 41: 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 42: Disclosure of Accounting Policies should form part of _____ _____.

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

Question 43: Freight outward is allocated on the basis of _____ of each department.

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

Question 44: 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 45: Salary payable is shown in balance sheet on _____ side.

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

Question 46: 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 47: Depreciation can be calculated either by ____ line method or _____ value methods.

  3. None of the above
  4. straight, written down
  

Question 48: Materiality has to be considered in selection of _____ _____.

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

Question 49: 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 50: As per AS–1, disclosure should be made of

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

Question 51: 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 52: Undervaluation of stock _____ profits.

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

Question 53: Net profit is _____ to capital.

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

Question 54: 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 55: There is _____ to establish accounting standards.

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

Question 56: 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
  

Question 57: Under _____ method stock is valued after every transaction.

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

Question 58: Inventory is valued of

  1. Cost only
  2. M.V. only
  3. Cost or N.R.V. whichever is less
  4. None of the above
  

Question 59: Paid underwriting commission on issue of shares ` 20,000

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

Question 60: Standardisation of accounting policies is necessary to ensure.

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

Question 61: Carriage inward is shown in _____ A/c.

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

Question 62: Spent to get a licence to run the factory ` 60,000

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

Question 63: Sold Government Bonds ` 30,000

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

Question 64: Revenue from instalment sale is recognised when

  1. An agreement is signed
  2. Goods are delivered
  3. Initial payment is received
  4. Last instalment is paid
  

Question 65: Revenue from service is recognised when

  1. Service is rendered
  2. Service is to be rendered
  3. Contract of service is made
  4. None of the above
  

Question 66: Factory expenses are shown in _____ Account.

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

Question 67: AS–2 (Revised) is applicable to _____ enterprise.

  1. not all
  2. Selective
  3. None of the above
  4. all
  

Question 68: Revenue from cosignment is recognised when

  1. Goods are sent on consignment
  2. Goods are sold by consignee
  3. When account sale is received from the consignee
  4. When proforma invoice is sent by the consignor
  

Question 69: Revenue from Royalty is recognised on

  1. Cash basis
  2. Accrual basis
  3. Signing the agreement
  4. None of the above
  

Question 70: Sales of each department is the basis of allocation of :

  1. Selling Expenses
  2. Advertising Expenses
  3. (a) and (b)
  4. None of the above
  

Question 71: Depreciation is allocated on the basis of

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

Question 72: _____ method is suitable for perishable goods.

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

Question 73: _____ expenditure does not give any future benefits.

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

Question 74: Under _____ method balance sheet does not show stock at current price.

  1. Physical
  2. Periodic
  3. Perpetual
  4. None of the above
  

Question 75: _____ method assumes that stock received first is issued first.

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

Question 76: Accounts must be prepared as per _____.

  1. Organisation
  2. All of the above
  3. Law
  4. None of the above
  

Question 77: _____ method is applied when the lots of goods are not identifiable.

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

Question 78: As per AS–1, disclosure of accounting policies should be made

  1. At all relevant places
  2. At one place
  3. In Profit & Loss Account
  4. In Balance Sheet
  

Question 79: Purchased a lathe machine ` 1.50 lakhs

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

Question 80: Expenses regarding purchases are allocated on the basis of _____.

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

Question 81: GAAP are included in

  1. Accounting standards
  2. Accounting rules
  3. Guidance Notes
  4. Framework of Accounting
  

Question 82: In valuation of inventory _____ concept is followed.

  1. Consistency
  2. Realisation
  3. Conservatism
  4. None of the above
  

Question 83: 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
  

Question 84: As per AS–2, inventory should be valued at

  1. Cost
  2. Lower of cost and net realisable value
  3. Realisable value
  4. Retail price
  

Question 85: Under _____ method stock is valued at oldest rate.

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

Question 86: Inventory should be valued at cost or M.V. whichever is _____.

  1. More
  2. Same
  3. None of the above
  4. Less
  

Question 87: Interest acurued on investment is shown in balance sheet on _____ side.

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

Question 88: ASB uses the following process in establshment of Accounting Standards

  1. Preliminary draft, Exposure draft, Final draft, Standard
  2. Standard, Exposure draft, Preliminary draft, Final draft
  3. Exposure draft, Preliminary draft, Standard and final draft
  4. None of the above
  

Question 89: Erection of a gas boiler to replace the old

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

Question 90: By-products, wastes and spares are to be valued at net realisable price if their value is not _____.

  1. Spare Parts
  2. Finished Goods
  3. None of the above
  4. material
  

Question 91: _____ expenditure is shown in Profit & Loss Account.

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

Question 92: Cost of H.R. Department is allocated on the basis of _____ _____ _____ .

  1. Area of each Department
  2. Sale of each Department
  3. number of workers
  4. None of the above
  

Question 93: As per AS–2, cost of inventories should exclude

  1. Direct labour
  2. Interest on loans
  3. Factory overheads
  4. Cost of designing the product
  

Question 94: Legal expenses in connection with purchase of land ` 50,000

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

Question 95: Following is not debited to Departmental P & L A/c

  1. Rent
  2. Salaries
  3. Lighting charges
  4. Carriage on purchases
  

Question 96: The Rule followed in disclosure of accounting policies

  1. All significant policies should be disclosed
  2. Only a few policies should be disclosed
  3. Accounting policies should not be disclosed
  4. None of the above
  

Question 97: 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 98: AS 1 is _____.

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

Question 99: Following is an example of an accounting policy

  1. Going concern
  2. Entity
  3. Conservatism
  4. Conversion of foreign currency items
  

Question 100: Installed a gas boiler ` 1,25,000

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