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.
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