CBSE Class 12 Accountancy Financial Statements of A Company Worksheet

Question. If expected period of payment of trade payables is 13 months and operating cycle is 14 months, then it is a .
(a) Current assets
(b) Current liability
(c) Non-current assets
(d) Non-current liability

Answer : B

Question. Share Capital of a Company consists of 5,00,000 Shares of ₹ 10 each, ₹ 8 called up. All the
shareholders have duly paid the called up amount. Share capital will be shown as :
(a) Subscribed and Fullypaid
(b) Subscribed but not Fullypaid
(c) Both A andB
(d) None of the above

Answer : B

Question. In a trading firm, if stock of finished goods held for a month and credit period is 2 months, then operating cycle will be for month/months?
(a) One
(b) Two
(c) Three
(d) Four

Answer : C

Question. Which of the following is not a sub-head under the Current Assets?
(a) Cash and CashEquivalents
(b) Trademarks
(c) Short-Term Loans andAdvances
(d) Inventories

Answer : B

Question. Which of the following is not a part of Finance Cost?
(a) Bank charges
(b) Interest paid on debentures
(c) Interest paid on public deposits
(d) Loss on issue of debentures

Answer : A

Question. ‘Loose tools’ appears in the company’s Balance Sheet under the head/sub head.
(a) Inventory
(b) Non-current assets
(c) Other current assets
(d) Stores and spares part

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. Match thefollowing
(i) TradeMarks (a) Cash and CashEquivalents
(ii) StoresandSpares (b) Intangibleassets
(iii) Cheque inhand (c) Inventory
(a) (i)-(c) (ii)-(b)(iii)-(a)
(b) (i)-(c) (ii)-(a)(iii)-(b)
(c) (i)-(b) (ii)-(c)(iii)-(a)
(d) (i)-(a) (ii)-(c)(iii)-(b)

Answer : C

Question. Assertion A: Profit and Loss Account and Balance sheet are financial statements showing financial position of a business unit.
Reason (R): Profit and Loss Account and Balance Sheet are prepared at the end of the financial year.
(a) Both A and R are individually true and R is the correct explanation ofA.
(b) Both A and R are individually true but R is not correct explanation ofA.
(c) A is true but R isfalse.
(d) A is false but R is true.

Answer : D

Question. ‘Bills discounted but not yet matured’ will be shown in the company’s Balance Sheet under the head
(a) Current Asset
(b) Current Liabilities
(c) Unamortized Expenditure
(d) Contingent Liabilities

Answer : D

Question. Unclaimed dividend appears in a company’s Balance Sheet under the sub-head_____________.
(a) Short-term Borrowings
(b) Trade Payables
(c) Other Current Liabilities
(d) Short Term Provisions

Answer : C

Question. Change in Inventories means:
(a) Opening Inventories less ClosingInventories
(b) Closing Inventories less OpeningInventories
(c) Difference between Opening Inventories and Closing Inventories, if Opening Inventories are higher
(d) Difference between Closing Inventories and Opening Inventories, if Closing Inventories are higher.

Answer : A

Question. A company issued capital. A shareholder paid all money on allotment while first call is not called by company. So you are required to show this advance in balance sheet of a company as
(a) Current Liability
(b) Long-term liability
(c) Current assets
(d) None of the above

Answer : A

Question. While preparing the Balance Sheet of a company ‘Underwriting Commission' is shown under which head?
(a) UnamortizedExpenditure
(b) CurrentAssets
(c) Non-CurrentAssets
(d) CurrentLiaibility

Answer : A

Question. Cash and cash equivalent does not include
(a) Cheques
(b) Balance with banks
(c) Bank deposit with more than 12 months maturity
(d) Inventories

Answer : D

Question. Provision for Tax appears in a Company’s Balance Sheet under the Sub-head ................
(a) Reserves and Surplus
(b) Long-term Provisions
(c) Other Current Liabilities
(d) Short-term Provisions

Answer: D

Question. Tangible assets are assets which can be physically seen and touched, Like
(a) All of the options
(b) Land & Building
(c) Plant and Equipment
(d) Furniture & Fixture

Answer: A

Question. Persons who are willing to invest in any organization always wish to know about the profitability and solvency of the business concern
(a) Investors and Potential Investors
(b) Employees and Workers
(c) Owner
(d) All of the options

Answer: D

Question. The basic equation on which a profit & loss statement is based is
(a) Revenues - Expenses = Profit
(b) Revenues + Expenses = Profit
(c) Revenues - Expenses = Profit and Revenues + Expenses = Profit
(d) None of the options

Answer: A

Question. Patents and Trademarks are examples of
(a) Tangible Fixed Assets.
(b) intangible Fixed Assets.
(c) Intangible Assets under Development.
(d) Capital Work-in-Progress.

Answer: B

Question. Which statement shows the sources related to the inflow and Outflow of cash
(a) Fund Flow Statement
(b) Ratio Analysis
(c) Cash Flow Statement
(d) None of the options

Answer: C

Question. Balance Sheet of A Company is prepared according to the Revised Schedule III, Part-I of
(a) Section 211
(b) Section 213
(c) Section 217
(d) Section 209

Answer: A

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. 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: B

Question. Fixed Assets are
(a) All of the options
(b) Land and Building
(c) Plant and Machinery
(d) Motor Car

Answer: A

Question. Which items is not the example of operating expenses
(a) Loss on sale of fixed assets
(b) Cash discount allowed to customers
(c) Selling and Distribution expenses
(d) All of the options

Answer: A

Question. Interest accrued and due on debentures appear in a Company’s Balance Sheet under the Sub-head ................
(a) Short-term Borrowings
(b) Trade Payables
(c) Other Current Liabilities
(d) Short-term Provisions

Answer: C

Question. Bills receivable and debtors are
(a) Fixed assets
(b) Current assets
(c) Long term assets
(d) None of the options

Answer: B

Question. While preparing the Balance Sheet of a company ‘Securities Premium’ is shown under :
(a) Current Liability
(b) Share Capital
(c) Long-term Borrowings
(d) None of the above

Answer: D

Question. appear in a Company’s Balance Sheet under the Sub-head Short-termProvision.
(a) Interest Accrued but not due onBorrowings
(b) Provision forTax
(c) UnpaidDividend
(d) Calls in Advance

Answer : B

Question. Balance sheet of a company is required to be prepared in the format givenin
(a) Schedule III PartII
(b) Schedule III PartI
(c) Schedule III PartIII
(d) Table A

Answer : B

Question. In a company’s Balance sheet Provision for Employees Benefits to be settled within 12 months is shown under:
(a) Non currentliabilities
(b) Current liabilities
(c) Non-currentassets
(d) Current assets

Answer : B