CBSE Class 12 Accountancy – MCQ and Online Tests – Unit 8 – Financial Statements of a Company
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CBSE Class 12 Accountancy – MCQ and Online Tests – Unit 8 – Financial Statements of a Company
Question 1.
An Annual Report is issued by a company to its:
(a) Directors
(b) Authors
(c) Shareholders
(d) Management
Answer
Answer: (c) Shareholders
Question 2.
The assets of a business can be classified as :
(a) Fixed and Non-fixed Assets
(b) Tangible and Intangible Assets
(c) Non-Current and Current Asset
(d) None of these
Answer
Answer: (c) Non-Current and Current Asset
Question 3.
Which of the following is the element of financial statements?
(a) Balance Sheet
(b) Profit & Loss A/c
(c) Both (a) and (b)
(d) None of these
Answer
Answer: (c) Both (a) and (b)
Question 4.
Financial statements are the product of accounting process.
(a) First
(b) Second
(c) End
(d) None of these
Answer
Answer: (c) End
Question 5.
Financial statements disclose :
(a) Monetary information
(b) Qualitative information
(c) Non-monetary information
(d) All the above
Answer
Answer: (a) Monetary information
Question 6.
Which of the following is not required to be prepared under the Companies Act:
(a) Statement of Profit & Loss
(b) Balance Sheet
(c) Anditor’s Report
(d) Fund Flow Statement
Answer
Answer: (c) Anditor’s Report
Question 7.
Statement of Profit & Loss is also called………:
(a) Operating Profit
(b) Balance Sheet
(c) Income Statement
(d) Trading Account
Answer
Answer: (c) Income Statement
Question 8.
Preliminary expenses are shown in the Balance Sheet under the head:
(a) Non-current assets
(b) Current assets
(c) Non-current liabilities
(d) Deducted from securities premium reserve
Answer
Answer: (d) Deducted from securities premium reserve
Question 9.
The term financial statements includes :
(a) Statement of Profit & Loss
(b) Balance Sheet
(c) Statement of Profit & Loss and Balance Sheet
(d) None of these
Answer
Answer: (c) Statement of Profit & Loss and Balance Sheet
Question 10.
Patents and copyrights fall under the category of:
(a) Current Assets
(b) Liquid Assets
(c) Intangible Assets
(d) None of these
Answer
Answer: (c) Intangible Assets
Question 11.
Goodwill falls under which category of assets:
(a) Current Assets
(b) Tangible Assets
(c) Intangible Assets
(d) None of the above
Answer
Answer: (c) Intangible Assets
Question 12.
Debit Balance of Profit & Loss Statement will be shown on:
(a) Assets Side of Balance Sheet
(b) Liabilities Side of Balance Sheet
(c) Under the head Reserve & Surplus
(d) Under the head Reserves and Surplus as a negative item
Answer
Answer: (d) Under the head Reserves and Surplus as a negative item
Question 13.
Preliminary Expenses are shown in the Balance Sheet under which head ?
(a) Fixed Assets
(b) Reserves and Surplus
(c) Loans & Advances
(d) None of these
Answer
Answer: (d) None of these
Question 14.
The profit and loss disclosed by the accounts of a company is:
(a) Transferred to share capital account
(b) Shown under the head of ‘Current liabilities’ and provisions
(c) Shown under the head ‘Reserves and Surplus
(d) None of these
Answer
Answer: (c) Shown under the head ‘Reserves and Surplus
Question 15.
Financial Statements are :
(a) Anticipated facts
(b) Recorded facts
(c) Estimated facts
(d) None of these
Answer
Answer: (b) Recorded facts
Question 16.
As per provisions of Companies Act, 2013 under which Section, the final accounts of a company is prepard :
(a) 128
(b) 210
(c) 129
(d) 212
Answer
Answer: (c) 129
Question 17.
Balance Sheet is a :
(a) Account
(b) Statement
(c) Both (a) and (b)
(d) All the above
Answer
Answer: (b) Statement
Question 18.
Provision for Provident Funds is shown in the Balance Sheet of a company under the head :
(a) Reserves and Surplus
(b) Non-current Liabilities
(c) Provision
(d) Contingent Liabilities
Answer
Answer: (b) Non-current Liabilities
Question 19.
Contingent Liabilities are exhibited under the heading:
(a) Fixed Liabilities
(b) Current Liabilities
(c) As a footnote
(d) None of these
Answer
Answer: (c) As a footnote
Question 20.
Equity ₹ 90,000 Liabilities ₹ 60,000 Profit of the year ₹ 20,000. Then total assets will be :
(a) ₹ 1.70,000
(b) ₹ 1,50,000
(c) ₹1,10,000
(d) ₹ 80,000
Answer
Answer: (a) ₹ 1.70,000
Question 21.
The term current assets includes :
(a) Stock
(b) Debtors
(c) Cash
(d) All of these
Answer
Answer: (d) All of these
Question 22.
The reserve which is created for a particular (specific) purpose and which is a charge against revenue is called:
(a) Capital Reserve
(b) General Reserve
(c) Secret Reserve
(d) Specific Reserve
Answer
Answer: (d) Specific Reserve
Question 23.
Under which heading of Balance Sheet is general reserve shown:
(a) Miscellaneous Expenditure
(b) Share Capital
(c) Reserves & Surplus
(d) None of these
Answer
Answer: (c) Reserves & Surplus
Question 24.
Which of the following assets is not shown undeer the head ‘Fixed Asset’ in the Balance Sheet ?
(a) Goodwill
(b) Bills Receivable
(c) Buildings
(d) Vehicle
Answer
Answer: (b) Bills Receivable
Question 25.
According to which part of Schedule III of the Indian Companies Act, 2013, Indian companies have to prepare Balance Sheet:
(a) Part 1
(b) Part 2
(c) Part 3
(d) Part 4
Answer
Answer: (a) Part 1
Question 26.
Which of the following is not a part of financial statement of a company ?
(a) Profit & Loss A/c
(b) Balance Sheet
(c) Ledger Account
(d) Cash Flow Statement
Answer
Answer: (c) Ledger Account
Question 27.
Balance sheet of companies is now prepared in :
(a) Horizontal Form
(b) Vertical Form
(c) Either (a) or (b) Form
(d) None of these
Answer
Answer: (b) Vertical Form
Question 28.
Current Assets on the Assets side of Balance Sheet of a Company includes:
(a) Sundry Debtors
(b) Cash in hand
(c) Stock
(d) All of these
Answer
Answer: (d) All of these
Question 29.
Goodwill of a company is shown on the assets side of the Balance Sheet under the head.
(a) Current Assets
(b) Non-current Assets
(c) Miscellaneous Expenditure
(d) None of these
Answer
Answer: (b) Non-current Assets
Question 30.
The form of Balance Sheet as per Companies Act, 2013 is:
(a) Horizontal
(b) Horizontal or Vertical
(c) Vertical
(d) None of these
Answer
Answer: (c) Vertical
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