BCOM Financial Accounting 1 MCQ

Question 200: It is necessary to standardise the accounting principles and policies for ensuring

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

Question 201: Received interest on investment ` 2,500

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

Question 202: The AS deals with revenue recognition is

1. AS–1
2. AS–9
3. AS–3
4. AS–10

Question 203: AS–9 does not deal with revenue arising from

1. Sale of goods
2. Interest
3. Service contracts
4. Construction contracts

Question 204: Amount received on sale of goods is a _____ receipt.

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

Question 205: Following is an example of accounting policy

1. Realisation
2. Accrual
3. Entity
4. Valuation of fixed assets

Question 206: Freight inward is allocated on the basis of _____.

1. Sale
2. Advertising Expenses
3. Income
4. Purchases

Question 207: Valuation of inventories is governed by

1. Companies Act
2. Income Tax Act
3. AS–2
4. AS–6

Question 208: Interest on capital is debited to _____ Account.

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

Question 209: 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 210: Inventories are assets

1. held for sale in the ordinary course of business
2. held for long term capital appreciation
3. held for production of goods
4. (a) and (c)

Question 211: Repairs of machinery is a _____ expenditure.

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

Question 212: Drawings Account shows _____ balance.

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

Question 213: AS–2 recognises _____ and _____ Methods.

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

Question 214: Under _____ method it is assumed that stock received first is issued first.

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

Question 215: Revenue from Hire purchase sale is recognised when

1. An agreement is signed
2. Goods are delivered
3. When last instalment is received
4. None of the above

Question 216: Carriage inward is shown in _____ Account.

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

Question 217: Salary payable is shown in the Balance Sheet on _____ side.

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

Question 218: Under _____ method, fluctuations in prices are overcome.

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

Question 219: Disclosure should form part of

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

Question 220: Prepaid expenses are shown in balance sheet on _____ side.

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

Question 221: Freight outward is allocated on the basis of _____.

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

Question 222: _____ Accounts show department wise profit / loss.

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

Question 223: Accounting Standard 1 is

1. Mandatory
2. Optional
3. Recommendatory
4. No longer valid

Question 224: Spent on making an entrance for a cinema house ` 1,50,000

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

Question 225: Following factors should be considered in selection of accounting policies

1. Going concern
2. Growth of business
3. Substance over form
4. Solvency

Question 226: Following is not covered by AS 9

1. Dividend
2. Interest
3. Royalty
4. Lease Rent

Question 227: Hire charges of a special machine ` 20,500

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