Commerce MCQ Questions and Answers

Which one of the following is not included in the internal check as regards purchases ?

Consider the following statements- 1. It is mandatory for all business enterprises to conduct audit of accounts. 2. Audit Note Book is a tool in the conduct of audit. 3. Internal check system is an inbuilt mechanism within an organization to check frauds and errors. Which of the statements given above is/are correct ?

Match List-I with List-II and select the correct answer using the code given below the Lists- List-I (Type of Books) (a) Minutes Book (b) Subsidiary Ledger (c) Stores Ledger (d) Log Book List-II (Content) 1. Records of issue of packing materials 2. Records of running hours of machine 3. Records of decisions at a meeting 4. Records entry of receipt from debtors Codes : (a) (b) (c) (d)

What is the method in which an amount equal to the amount written off as depreciation is invested in outside securities in order to facilitate replacement of an asset at the expiry of its life period, called ?

What is Capital Redemption Reserve Account available for ?

Match List-I with List-II and select the correct answer using the code given below the Lists- List I (Item) (a) Earnings per share (b) Cash flow statement (c) Inventory valuation (d) Disclosure of accounting policies List-II (Accounting Standard) 1. AS-3 2. AS-20 3. AS-1 4. AS-2 Codes : (a) (b) (c) (d)

Government grants related to income as per the Accounting Standard (AS)-12 should be-

What is the renewal fees paid for a patent right ?

According to the Accounting Standard (AS)-2, the inventory is to be valued at which one of the following ?

Match List-I with List-II and select the correct answer using the code given below the Lists- List-I (Nature of Expenditures/Receipts) (a) Capital receipts (b) Capital expenditure (c) Revenue expenditure (d) Revenue receipt List II (Example) 1. Sale of fixed assets 2. Improvement of fixed assets 3. Income received as interest 4. Interest on loan for business Codes : (a) (b) (c) (d)