CBSE Class 12 Accountancy Financial Statement Of Companies MCQs Set C

Question. The assets held by a business which can be converted in the form of cash, without disturbing the normal operations of a business
a) Current assets
b) Tangible assets
c) Intangible assets
d) Fixed assets

Answer : A

Question. Reliability of financial analysis depends upon the
a) Reliability of Customer
b) Reliability of financial data
c) Reliability of financial data and Reliability of Customer
d) None of the options

Answer : B

Question. Calls in advance is to be shown under the heading of
a) Current Liabilities
b) Current Assets
c) Current Liabilities and Current Assets
d) None of the options

Answer : A

Question. Which of the following is not required to be prepared under the Companies Act
a) Statement of Profit and Loss
b) Balance Sheet
c) Report of Director’s and Auditor’s
d) Funds Flow Statement

Answer : D

Question. Those liabilities which may or may not arise as they are dependent on happening in future.
a) Contingent Liability
b) Current Liability
c) Provisions
d) Reserve & surplus

Answer : A

Question. Mining Rights are
a) Tangible Fixed Assets.
b) Other Current Liabilities.
c) Intangible Assets Under Development.
d) Short-term Borrowings.

Answer : B

Question. Which are written off every year from the profits earned by the business.
a) Preliminary Expenses
b) Liabilities
c) Preliminary Expenses and Liabilities
d) None of the options

Answer : A

Question. Current Liabilities are those liabilities which are liable to pay with in an operating cycle generally one year
a) Current Liabilities
b) Current Assets
c) Reserves and Surplus
d) None of the options

Answer : A

Question. Inventories include the following are
a) Goods acquired for trading
b) Raw Material
c) Work in progress
d) All of the options

Answer : D

Question. Which are the determinants of dividend policy
a) Legal Requirement
b) Working Capital Requirement
c) Liquidity Position
d) All of the options

Answer : D

Question. Which of the following is not a Short-term Borrowing?
a) Deposits
b) Loans repayable on demand
c) Bank Overdraft
d) Trade Receivables

Answer : D

Question. ___________ is conducted by the management
a) Internal Analysis
b) External Analysis
c) Internal Analysis and External Analysis
d) None of the options

Answer : A

Question. The accounting equation is
a) Assets= capital + Liabilities
b) Assets= capital – Liabilities
c) Assets= capital + Liabilities and Assets= capital- Liabilities
d) None of the options

Answer : A

Question. In a company’s Balance Sheet Provision for Employees Benefits to be settled within 12 months is shown under
a) Non-current Liabilities.
b) Current Liabilities.
c) Non-current Assets.
d) Current Assets.

Answer : D

Question. Salaries outstanding Rs 50,000 will be record in the balance sheet under
a) Other Current Liabilities
b) Other Current Assets
c) Non-current Liabilities
d) All of the options

Answer : A

Question. Sinking Fund is shown under which subheading
a) Reserve and Surplus
b) Trade Payable
c) Non Current Liabilities
d) None of the options

Answer : A

Question. Miscellaneous Expenditure are
a) Development expenditure not adjusted
b) Preliminary Expenses
c) Discount allowed on the issue of shares/deb
d) All of the options

Answer : D

Question. Any difference in trial balance transferred to
a) Suspense A/c
b) Capital A/c
c) Current A/c
d) None of the options

Answer : A

Question. The term current asset doesn t cover
a) Car
b) Debtors
c) Stock
d) Prepaid expenses

Answer : A

Question. There are various external parties who are interested in financial statements
a) Creditors and Investors and Potential Investors
b) Creditors
c) Investors and Potential Investors
d) None of the options

Answer : A

Question. While preparing the Balance Sheet of a Company which item is shown under the head ‘Long term Borrowings’?
a) 6% Debentures
b) Security Premium Reserve
c) Trade Payables
d) None of the above

Answer : A

Question. Record all the debit balances of real and personal accounts in the
a) Assets side of the balance sheet
b) Liability side of the balance sheet
c) Assets side of the balance sheet and Liability side of the balance sheet
d) None of the options

Answer : A

Question. Statement of Profit & Loss – Negative Balance is shown as a minus item under
a) Reserve and Surplus
b) Shareholders Fund
c) Short-term Loan
d) None of the options

Answer : A

Question. Which item is not part of Reserve and Surplus
a) Accumulated Depreciation
b) Capital Reserves
c) General Reserve
d) All of the options

Answer : A

Question. Financial Statement also called
a) Final Accounts
b) Profit & Loss A/c
c) Trading A/c
d) None of the options

Answer : A

Question. Closing stock is recorded in the
a) Balance sheet
b) Profit and loss account
c) Trial balance
d) None of the options

Answer : A

Question. Bills Receivables appear in a Company Balance Sheet under the Sub-head
a) Current Investments
b) Cash Equivalents
c) Trade Receivables
d) Short term Loans and Advances

Answer : D

Question. The profit & loss statement is also known as the
a) Statement of Operation
b) Income Statement
c) Statement of Earning
d) All of the options

Answer : D

Question. Short-term Borrowings appear in a Company’s Balance Sheet under the head
a) Current Assets
b) Current Liabilities
c) Non-Current Liabilities
d) Non-Current Assets

Answer : B