Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

96:  
Amount spent on an advertisement campaign, the benefit of which is likely to last for three years is a
A.

Capital expenditure

B.

Revenue expenditure

C.

Deferred revenue expenditure

D.

None of the above

 
 

Option: C

Explanation :


97:  

As per AS - 2, inventory is to be valued at

A.

Actual cost

B.

Sales value

C.

Net realisable value

D.

The lower of cost, or net realisable value

 
 

Option: D

Explanation :


98:  
Which of the following can be treated as capital expenditure?
A.

Acquisition of land, building, machinery etc.

B.
Amount spent on increasing the Sitting accommodation in picture hall.
C.
Expenditure incurred for acquiring the right to carry on a business, for example, patent rights, copyright, goodwill.
D.

All of the above

 
 

Option: D

Explanation :


99:  
Which of the following Accounting standards is recommendatory and not mandatory?
A.

AS - 1 - Disclosure of accounting policies

B.

AS - 2 (Revised) - Valuation of inventories

C.

AS -3 - Cash Flow Statement

D.
AS - 4 - Contingencies and Events occurring after the Balance Sheet date
 
 

Option: C

Explanation :


100:  
Which of the following is not required to be disclosed according to AS-6?
A.

The depreciation methods used

B.
The total depreciation for the period for each class of assets
C.
The gross amount of each class of depreciable assets and the related accumulated depreciation
D.

Depreciated value of the assets

 
 

Option: D

Explanation :




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