CBSE Class 12 Accountancy Financial Statements Of Company Worksheet

MCQs Questions for NCERT Class 12 Accountancy Financial Statements

Important Questions for NCERT Class 12 Accountancy Financial Statements

Question. The Profit and Loss Account shows :
(a) Financial Position of the Concern
(b) Gross Profit
(c) Net Profit
(d) Net Profit and Financial Position

Answer : C

Question. Balance Sheet shows :
(a) Profit or Loss
(b) Financial Position
(c) Errors of Accounts
(d) Total Debtors

Answer :  B

Question. Types of Account shown in Balance Sheet are
(d) Nominal and Personal
(b) Real and Nominal
(c) Real and Personal
(d) Real, Nominal and Personal

Answer :  C

Question. Net profit of a firm before charging manager’s commission is Rs.21,000. If the manager is entitled to 5% commission after charging such commission, how much manager will get as commission?
(a) Rs. 1,050
(b) Rs. 1,000
(c) Rs.2,100
(d) Rs.2,000

Answer :  B

Question. Excess of debit in Profit and Loss Account is called :
(a) Net Profit
(b) Net Loss
(c) Gross Profit
(d) Gross LOSS

Answer :  B

Question. Business paid to Mr. A Rs.50,000 as salary on 25th March, 2011. Mr. A went to bank to deposit cheque in his account on 3rd April, 2011. What is the entry to be passed in the Balance Sheet on the date of final accounts?
(a) No entry
(b) Bank A/c Dr.
To O/s Salary A/c
(c) Salary A/c Dr.
To O/s Salary A/c
(d) Salary A/c Dr.
To A

Answer :  A

Question. A machine was purchased in Bihar. During transit the machine was damaged and the cost of repairs incurred is Rs.20,000. This expense is treated as :
(a) Capital expense
(b) Revenue expense
(c) Deferred Revenue expense
(d) None of these

Answer :  A

Question. Prepaid expenses should appear in
(a) Liability
(b) Assets
(c) Revenues
(d) None of the options

Answer: B

Question. Current liabilities do not include
(a) Prepaid insurance
(b) Sundry creditors
(c) Bank overdraft
(d) None of the options

Answer: A

Question. Which of the following is not the limitation of financial statements?
(a) Ignore qualitative aspects.
(b) Personal bias.
(c) Ignores price level change.
(d) Provide information about the profitability of the business.

Answer: D

Question. From the given items which is a part of Current Liabilities:
(a) Inventories
(b)Trade Payables
(c) Cash and Cash Equivalents
(d)Trade Receivables

Answer: B

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

Answer: C

Question. The balance sheet, also called the
(a) Statement of financial position
(b) Profit & Loss Account
(c) Cash Flow
(d) None of the options

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. ............appear in a Company’s Balance Sheet under the Sub-head Short-term Provision
(a) Interest Accrued but not due on Borrowings
(b) Provision for Tax
(c) Unpaid Dividend
(d) Calls in Advance

Answer: B

Question. 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: C

Question. Which one of the following items is shown under the heading ‘current liabilities’ in the Balance Sheet of a company?
(a) Investments
(b) Reserve Fund
(c) Unclaimed Dividend
(d) Livestock

Answer: C

Question. The following is(are) the external source(s) of cash
(a) Long terms loans
(b) Issue of new shares
(c) Short term borrowings
(a) All of the options

Answer: D

Question. The statement which shows the assets and liabilities of a company is known as
(a) Balance sheet
(b) Profit & Loss Account
(c) Trial Balance
(d) None of the options

Answer: A

Question. Nominal accounts are related to
(a) Liability
(b) Assets
(c) Expense + Income
(d) None of the options

Answer: C

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. “Salaries and Wages” appearing in Trial Balance is shown :
(a) On the Debit Side of Trading A/c
(b) On the Debit Side of P & L A/c
(c) On the Asset Side of Balance Sheet
(d) On the Liabilities Side of Balance Sheet

Answer :  B

Question. Balance Sheet is prepared with the balances of which of the following :
(a) All balances in the Ledger
(b) Balances of Personal Accounts
(c) Balances of Real Accounts
(d) Balances of Personal and Real Accounts

Answer :  D

Question. Balance of Petty Cash is :
(a) Expenses
(b) Income
(c) Liability
(d) Asset

Answer :  D

Question. Which type of expenses are shown in Trading Account?
(a) Direct Expenses.
(b) Indirect Expenses.
(c) Opening Expenses.
(d) Direct and Indirect Expenses.

Answer :  A

Question. Which statement shows financial position of the business?
(a) Trading Account.
(b) Profit and Loss Account.
(c) Balance Sheet.
(d) Trial Balance.

Answer :  C

Question. Which of the following is correct?
(a) Operating Profit = Net Profit + Non-operating Expenses - Non-operating Income
(b) Operating Profit = Net Profit + Non-operating Expenses + Non-operating Income
(c) Operating Profit = Net Profit + Non-operating Expenses - Non-operating Income
(d) Operating Profit = Net Profit — Non-operating Expenses + Non-operating Income

Answer :  C

Question. Carriage Outwards is shown in
(a) Trading Account.
(b) Profit and Loss Account.
(c) Balance Sheet.
(d) Either Trading Account or Profit and Loss Account.

Answer :  A

Question. Gross Profit: Rs. 50,000; Salaries: Rs. 5,800; Rent paid: Rs. 6,000; Provision for Doubtful Debts: Rs. 2,000 (Old); Commission (Credit) Rs. 4,000. Net Profit of the firm will be
(a) Rs. 42,200.
(b) Rs. 40,000.
(c) Rs. 42,000.
(d) Rs. 45,000.

Answer :  A

Question. Under which main heading and sub-heading of assets side of Balance Sheet of a company will Mastheads & Publishing Titles be?
(a) Current Assets, Inventories
(b) Fixed Assets, Tangible Assets
(c) Fixed Assets, Intangible Assets
(d) Current Assets, Other Current Assets

Answer : C

Question. How would you show Statement of Profit & Loss (Debit) Balance in Balance Sheet?
(a) Subtract from Reserves under the head Reserves & Surplus
(b) Subtract from Non Current Assets
(c) Footnote to Balance Sheet
(d) Under the head Other Current Assets

Answer : A

Question. Out of the following which order of Equity and Liabilities is correct?
(a) Shareholders’ Fund, Non Current Liabilities, Current Liabilities, Share Application money pending Allotment
(b) Shareholders’ Fund, Current Liabilities, Non Current Liabilities, Share Application money pending Allotment
(c) Shareholders’ Fund, Share Application money pending Allotment, Non Current Liabilities, Current Liabilities
(d) Shareholders’ Fund, Current Liabilities, Share Application money pending Allotment, Non Current Liabilities

Answer : C

Question. Employees Benefit Cost under Statement of Profit and Loss include
(1) Wages (2) Bonus
(3) Interest expenses (4) Depreciation
(a) 1&3
(b) 1&4
(c) 2&3
(d) 1&2

Answer : D

Question. Under which heading will you show other loan and advances from related parties?
(a) Long term borrowings
(b) Other long term liabilities
(c) Short term Borrowings
(d) Other Current Liabilities

Answer : A

Question. Out of the following, Identify the items that are shown in the Notes to accounts on Finance Cost 
(a) Interest paid on term loan (b) Interest paid on overdraft (c) Interest received on fixed deposits (d) Bank Charges ( e) Discount on Issue of debentures written off
Answer : Interest paid on term loan , Interest paid on overdraft, Discount on Issue of debentures written off

Question. Under which major heads of the statement of profit and loss of a company following items will be shown –
(i) Material Purchased
(ii) Sales
(iii) Wages and Salaries
Answer: Material Purchased- Cost of Material Consumed
Sales- Revenue from operation
Wages and Salaries – Employee benefit expenses

Question. Identify which of the following items are to be shown in the notes to accounts on other expenses
(a) Wages and Salaries (b) Internet expenses (c) Rent for Factory (d) Depreciation on furniture (e ) Rent for office (f) Audit Fees (g) Staff welfare Expenses (h) Courier expenses
Answer: Internet expenses, Rent for Factory, Rent for office, Audit Fees, Courier expenses

Question. List any three items that can be shown under the heading ‘Reserves and surplus’ in a company’s balance sheet
Answer:
1. Security premium reserve
2. General Reserve
Debenture redemption reserve

Question. Out of the following, Identify the items that are shown in the Notes to accounts on employee benefit expenses –
(a) Wages (b) Salaries (c ) Entertainment expenses (d) Bonus ( E ) Gratuity Paid (f) Conveyance Expenses
Answer: Wages, Salaries, Bonus and Gratuity Paid

Question. List the sub heading which are shown under the headings ‘Current Liabilities ‘as per Schedule III part-1 of the companies Act.2013
Answer: (a) Short term borrowings
(b) Trade payables
(c) Other current liability
(d) Short term provision

Question. List the items Shown under the head ‘Long term borrowings.
Answer:
1. Debentures
2. Bonds
3. Long term loans from Bank
Public deposits

Question. Compute the change in Inventory of Stock in Trade if
Opening Inventory of stock in Trade ₹80,000
Closing Inventory of Stock in Trade ₹50,000 ₹
Answer: Opening Inventory of Stock in Trade 80,000
Less: Closing Inventory of Stock in Trade 50000
Change in Inventory of stock in Trade 30,000

Q 1 How is a company’s balance sheet different from that of a Partnership firm?

Q 2 Name the major headings of the asset side of the balance sheet as per the requirements of schedule VI of the co. Act of 1956.

Q 3 Name the major headings of the liabilities side of the balance sheet.

Q 4 List the items covered under the following headings:

(i) Fixed Assets

(ii) Current Assets, Loans & Advances

(iii) Secured Loans

(iv) Miscellaneous Expenditure

(v) Reserves & Surplus

(vi) Unsecured Loans

(vii) Current Liabilities & Provisions

Q 5 List the information required to be given in the balance sheet of a Co. as foot note.

Q 6 How are the assets & liabilities of a Co. & a firm marshalled?

Q 7 List the statutory & voluntary disclosures of a financial statement.

Q 8 What does AS-1 state or refer to?

Q 9 Enumerate the various forms of preparing the balance sheet of a co.

Q 10 What is meant by segment reporting? Give its importance.

Q 11 List the parties interested in financial statements.

Q 12 Under what major headings will you classify the following items in the balance sheet:

Unclaimed dividend, Live stock, Arrears of fixed cumulative preference dividend,

Loose tools , Work in progress , Calls in arrears , Calls in advance , Public deposits ,

Interest accrued and due on debentures , Interest accrued but not due on unsecured

Loans , Premium on redemption of debentures , Forfeited shares a/c , Capital reserve, Prepaid insurance , Preliminary expenses.

Q 13 What is Contingent liability? Where is it shown in the Balance Sheet?

Q 14 How would you show the following two items in co’s Balance Sheet as at 31-12-2010 as per the requirements of schedule VI
(a) General Reserve Rs 2,00,000 ; Profit & Loss (Dr) Rs 1,50,000
(b) General Reserve Rs 1,50,000 ; Profit & Loss (Dr) Rs 2,00,000