MCQ FINANCIAL ACCOUNTING PART 8

MULTIPLE CHOICE QUESTION FOR CMA INTERMEDIATE GROUP FIRST (MCQ – FINANCIAL ACCOUNTING PART 8)

  • Del credere commission is allowed to consignee
    • for making cash sales
    • for making credit sales
    • for making extra sales
    • for undertaking risk of bad debts
  • Which of the following is a function of journal:
    • Analytical Function
    • Recording Function
    • Historical Function
    • All of the above
  • Any change in the accounting policy relating to inventories which has a material effect in the current or later periods should be disclosed. This is in accordance with the accounting principle of:
    • Going Concern
    • Conservatism
    • Consistency
    • Disclosure
  • Depreciation is a process of
    • Apportionment
    • Valuation
    • Allocation
    • None of the above
  • AS-9 is related to
    • Revenue Recognition
    • Cash Flow Statement
    • Accounting for Fixed Assets
    • Disclosure of Accounting policies
  • An amount spent in connection with obtaining a License for starting the factory is
    • Revenue Expenditure
    • Capital Expenditure
    • Pre-paid Expenditure
    • None of the above
  • According to AS-15 (Revised) superannuation scheme which has relevance only to the final salary and number of years of service is
    • Defined Benefit Scheme
    • Defined Contribution Scheme
    • Non-Contributory Scheme
    • Both (a) and (b)
  • Expenditures in respect of certain types of assets whose usefulness does not expires in the year of their occurrence but generally expires in the near future are called
    • Revenue Expenditure
    • Capital Expenditure
    • Deferred Revenue Expenditure
    • None of the above
  • The main objective of average clause contained in a fire insurance policy is to
    • Encourage full Insurance
    • Discourage full Insurance
    • Encourage under Insurance
    • Encourage full Insurance and Discourage under Insurance
  • Short working can be recouped out of
    • Minimum Rent
    • Excess of Actual Royalty over Minimum Rent
    • Excess of Minimum Rent over Actual Royalty
    • Profit and Loss Account
  • AS-6 (revised) is applicable to which one of the following assets?
    • Goodwill
    • Live stock
    • Plantation
    • Plant and Machinery
  • According to AS-3 (Revised) interest and dividends received in the case of a manufacturing enterprise should be classified as cash flow from
    • Operating Activities
    • Financing Activities
    • Investing Activities
    • Both (b) and (c)
  • Provision for bad and doubtful debts is created in anticipation of actual bad debts on the basis of:
    • Business Entity Concept;
    • Conservatism Concept;
    • Accrual Concept;
    • Full Disclosure Concept.
  • The out flow of funds to acquire an asset that will benefit the business for more than one accounting period is referred to as:
    • Miscellaneous Expenditure;
    • Revenue Expenditure;
    • Capital Expenditure;
    • Deferred Revenue Expenditure.
  • Goods are sent to the Branch at cost plus 25%. The loading on invoice price is:
    • (a) 20%;
    • (b) 25%;
    • (c) 30%;
    • (d) None of the above.
  • Actuarial valuation relates to:
    • Banking company;
    • Electric Supply Company;
    • Insurance Company;
    • None of the above.

YOU CAN FIND MCQ FINANCIAL ACCOUNTING TEST SERIES ON CMAINDIAGROUP.COM – COMING SOON
FOR PREVIOUS MCQ FINANCIAL ACCOUNTING PART 8
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