Question 101: Inventories are defined as _____ (AS–2 (Revise)).
- Current Liability
- Assets held for sale in the ordiniary course of business
- asset
- Non of the above
Question 102: Depreciation is allocated on the basis of _____ _____.
- Area of each Department
- light points
- No. of worker
- Asset Value
Question 103: Drawings are debited to _____ Account.
- Interest
- Investment
- Capital
- None of the above
Question 104: AS–2 states that, inventory should be valued at
- FIFO or weighted average basis
- Retail price of standard cost
- LIFO
- Current replacement cost
Question 105: Following is an example of an accounting policy
- Consistency
- Depreciation
- Accrual
- Going concern
Question 106: Pulling out old building and rebuilding it ` 2,50,000
- Capital
- Revenue
- D.R. Expenses
- None of the above
Question 107: Payment of penalty is a _____ expenditure.
- deferred revenue expenditure
- None of the above
- revenue
- capital
Question 108: _____ receipts are shown as income in Profit & Loss Account.
- deferred revenue expenditure
- Capital
- Revenue
- None of the above
Question 109: Valuation of Inventory should be done at
- Net realisable value
- Fair market value
- Present value
- Replacement value
Question 110: As per AS–1, disclosure of accounting policies should form part of
- Financial statements
- Director’s Report
- Auditor’s Report
- Books of accounts
Question 111: Replacement of old tyres by new one
- Revenue
- Capital
- D.R. Expenses
- None of the above
Question 112: Carriage on purchase of furniture is _____ expenditure.
- None of the above
- capital
- revenue
- deferred revenue expenditure
Question 113: Sales ratio is used for allocation of :
- Income tax
- Bad debts
- Depreciation
- None of the above
Question 114: Following factors should be considered in selection of accounting policies
- Liquidity
- Cost
- Materiality
- Morale of employees
Question 115: _____ is expenditure on asset held for generation of interest / dividend.
- Dividend
- Revenue
- None of the above
- Investment
Question 116: Cost of inventory does not include
- Selling cost
- Office overheads
- Exceptional waste of material
- All of the above
Question 117: Under _____ stock taking stock is valued periodically.
- Periodic
- Perpetual
- Physical
- All of the above
Question 118: Revenue from Advertising Agency Commission is recognised when
- Advertisement appears before the public
- Advertisement agreement is signed
- Advertisement copy is drafted
- None of the above
Question 119: Under _____ method lots of stock should be identified.
- LIFO
- Weighted Average
- All of the above
- FIFO
Question 120: There is need to _____ change in accounting policies
- Accural
- Realisation
- disclose
- All of the above
Question 121: Following is the example of accounting policy
- Consistency
- Goodwill treatment
- Cost
- Conservatism
Question 122: Brokerage paid on purchase of land ` 10,000
- Revenue expenditure
- Capital expenditure
- Deferred revenue expenditure
- None of the above
Question 123: All indirect expenses are debited to _____ Account.
- Profit & Loss
- Trading
- Balance Sheet
- None of the above
Question 124: Following is not debited to departmental P & L A/c
- Carriage
- Rent
- Salaries
- Interest received
Question 125: _____ expenditure is shown in the Balance Sheet on asset side.
- deferred revenue expenditure
- Capital
- None of the above
- Revenue
Question 126: Retail method of inventory valution is
- Sales less gross profit
- Cost plus net profit
- Sales plus gross profit
- Sales less net profit
Question 127: Revenue from sale of goods arises when
- Goods are sold out
- Goods are delivered
- Goods are depatched
- None of the above
Question 128: Under _____ inventory system, stock is valued on the basis of stores ledger.
- both (b) & (d)
- Periodic
- None of the above
- Perpetual
Question 129: 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 130: AS _____ deals with disclosure of accounting policies.
- GAAP
- AS 1
- ASB
- None of the above
Question 131: Interest on drawings is credited to _____ Account.
- Balance Sheet
- Trading
- Profit & Loss
- All of the above
Question 132: Following is the example of accounting policy
- Realisation
- Accrual
- Accounting period
- Recognition of profit on contract
Question 133: As per AS, goods and services produced and kept aside for specific projects should be valued at
- Contract price
- Net realisable value
- Identified individual cost
- Pre-placement cost
Question 134: In _____ method, stock is valued at current rate.
- LIFO
- None of the above
- FIFO
- Weighted Average
Question 135: Different firms follow _____ policies.
- Same
- leagal
- None of the above
- Different
Question 136: Depreciation is _____ in nature.
- capital
- None of the above
- deferred revenue expenditure
- revenue
Question 137: The factors to be considered while selecting accounting policies include “
- Morale of staff
- Materiality
- Liquidity
- Inflation
Question 138: Revenue from sale of goods is recognised when
- Sale is made
- Collection is made from debtors
- Goods are produced
- None of the above
Question 139: Revenue from interest is recognised when
- Interest is received
- Loan is repaid
- Interest accrues on time basis
- When loan is taken
Question 140: Spent on umbrellas to employees ` 5,000
- Revenue expenditure
- Capital expenditure
- Deferred revenue expenditure
- None of the above
Question 141: Cost of removal of stock from one place to another place.
- Revenue
- Capital
- D.R. Expenses
- None of the above
Question 142: As per AS–1, any change in accounting policy
- Should be disclosed
- Should not be disclosed
- Requires permission from ICAI
- Requires permission from the Government
Question 143: Accounting policies are
- Prescribed by AS–1
- Same for all the organisations
- Change from concern to concern
- Laid down by law
Question 144: Departmental Net Profit is transferred to _____.
- Trading A/c
- Balance Sheet
- None of the above
- General P & L A/c
Question 145: _____ method assumes that stock received last is issued first.
- All of the above
- LIFO
- FIFO
- Weighted Average
Question 146: Accounting policies are not _____ for all organisations.
- Compulsory
- Different
- None of the above
- Same
Question 147: Cost of Inventory should include
- Import duties
- Taxes
- Canriage
- All of the above
Question 148: Documentation charges regarding purchase of building is a _____ expenditure.
- revenue
- deferred revenue expenditure
- capital
- None of the above
Question 149: There is need of _____ to accounts.
- Report
- Data
- notes
- None ot the above
Question 150: Goodwill is not a _____ asset.
- fictitious
- fixed
- current
- None of the above
Question 151: Under perpetual inventory system inventory is valued
- Continuously
- Periodically
- Annually
- Quarterly
Question 152: Commission received is a _____ receipt.
- capital
- revenue
- deferred revenue expenditure
- None of the above
Question 153: _____ expenditure is recurring.
- Revenue
- Capital
- None of the above
- deferred revenue expenditure
Question 154: As per AS 1 the effect of any change in accounting policy on the value of any item in the final accounts should
- Be reported to directors
- Be reported to CEO
- Be disclosed
- Be ignored
Question 155: Advertising is a _____ expenditure.
- deferred revenue expenditure
- capital
- None of the above
- revenue
Question 156: Carriage inward is allocated on the basis of _____ of each department.
- sales
- purchases
- Expenses
- Income
Question 157: It is difficult to follow a _____ accounting policy in all the circumstances.
- uniform
- Transperancy
- None of the above
Question 158: Inventories do _____ include machinery.
- Partialy
- not
- Mostly
- None of the above
Question 159: Weighted Average method can be used under
- Only periodic inventory system
- Periodic and perpetual inventory systems
- Only perpetual inventory system
- None of the above
Question 160: AS–2 is not applicable to _____ _____.
- Mineral Oils
- Machinery Spares
- Live stock
- None of the above
Question 161: Wages paid for installation of machinery is a _____ expenditure.
- revenue
- capital
- None of the above
- deferred revenue expenditure
Question 162: Following factors should be considered in selection of accounting policies
- Consistency
- Prudence
- Dual aspect
- Cost
Question 163: Supervision charges should be apportioned over the different departments on the basis of :
- Time devoted for supervision
- Area occupied by each department
- Sales of each department
- None of the above
Question 164: _____ method is not recognised by AS 2.
- FIFO
- Weighted Average
- LIFO
- All of the above
Question 165: Overhauling of machinery is a _____ expenditure.
- capital
- revenue
- deferred revenue expenditure
- None of the above
Question 166: Prepaid insurance is shown on _____ side of the Balance Sheet.
- Liability
- asset
- Trading A/c debit
- Profit & Loss A/c credit
Question 167: AS per AS 2 cost of inventory should not include
- Interest on loan
- Direct Material
- Direct Labour
- Overheads
Question 168: In _____ method, stock is valued at oldest rate.
- FIFO
- LIFO
- Weighted Average
- None of the above
Question 169: 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 170: Revenue from dividend is recognised when
- Dividend is received
- Right to receive dividend is established
- Amount is credited to Bank Account
- Dividend warrant is despatched by the company
Question 171: Welfare expenses are allocated on the basis of _____ _____.
- Employees
- purchases
- Sales
- Rent
Question 172: Heavy legal expenses are _____ _____ _____ .
- capital
- deferred revenue expenditure
- revenue
- None of the above
Question 173: Cost of inventory should include
- Purchase price and cost incurred to bring the inventory to present location
- Purchase price only
- Freight only
- Cost of conversion only
Question 174: Trade discount should be
- Deducted from revenue
- Added to revenue
- Ignored
- None of the above
Question 175: Bad debt recovery is a _____ receipt.
- capital
- deferred revenue expenditure
- None of the above
- revenue
Question 176: As per AS–2, inventory covers
- Machinery spares
- WIP in case of service providers
- Materials or suppliers used in production
- Stock of mineral oil
Question 177: _____ _____ are laid down by law.
- Auditor's report
- Directors report
- Accounting Standards
- None of the above
Question 178: Departmental expenses may be _____ or _____.
- Direct or Indirect
- Office or Factory
- fixed or flexible
- None of the above
Question 179: Received from X Ltd. an invoice for ` 3,500 for repairs of walls of the office premises
- Revenue expenditure
- Capital expenditure
- Deferred revenue expenditure
- None of the above
Question 180: The _____ statements are prepared from the books of accounts and other records maintained by the enterprise.
- Leagal
- Non–Leagal
- None of the above
- financial
Question 181: 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 182: Rent is allocated on the basis of _____.
- Area
- Time
- Purchase
- Sales
Question 183: _____ _____ _____ is followed when there are fluctuations in prices.
- FIFO
- LIFO
- None of the above
- WAM
Question 184: Demolition cost of old building is a _____ _____ _____ .
- Capital expenditure
- Revenue expenditure
- None of the above
- deferred revenue expenditure
Question 185: In _____ method, Balance Sheet shows current cost of stock.
- LIFO
- FIFO
- None of the above
- Weighted Average
Question 186: Goods distributed as free sample are credited to _____ A/c.
- Trading
- P & L A/c
- Balance Sheet
- None of the above
Question 187: Under periodic inventory system, closing stock is valued
- By actually counting the stock on a particular date
- From the stores ledger
- By deducting value of sales from value of purchases
- On estimate basis
Question 188: Purchase of tools for servicing.
- Capital
- Revenue
- D.R. Expenses
- None of the above
Question 189: In consignment revenue is recognised when
- Goods are sent on consignment
- Goods are received by the consignee
- Goods are sold out by the consignee
- All of the above
Question 190: Overvaluation of stock _____ profits.
- Minimise
- Inflates
- None of the above
- Deflates
Question 191: Paid to an advocate to defend a suit claiming that the factory site belongs to the firm, the suit was unsuccessful
- Revenue expenditure
- Capital expenditure
- Deferred revenue expenditure
- None of the above
Question 192: _____ expenditure is non-recurring.
- Capital
- deferred revenue expenditure
- Revenue
- None of the above
Question 193: Cost of transport of material
- Increases landing cost of material
- Increases conversin cost
- Decreases variable cost
- None of the above
Question 194: In _____ method, stock is over valued when the prices are rising.
- Weighted Average
- All of the above
- LIFO
- FIFO
Question 195: Cost of repairing the building
- Revenue
- Capital
- D.R. Expenses
- None of the above
Question 196: Expenses traceable with the departments are called _____.
- Direct Income
- Welfare Expenses
- Direct Expenses
- None of the above
Question 197: AS–2 defines inventory as
- Current assets
- Current liabilities
- Fixed assets
- Assets held for sale in the ordinary course of business
Question 198: Inventory consists of finished goods held for sale in the _____ course of business.
- ordinary
- Legal
- None of the above
- Compulsory
Question 199: Under _____ inventory system, stock is valued by physical stock taking.
- Perpetual
- None of the above
- both (a) & (d)
- Periodic