12th Class Accountancy Financial Statement Of Company Question Bank

done MCQs - Financial Statements of a Company Total Questions - 62

• question_answer1)
  The Balance Sheet provides information about financial position of an enterprise:                                [CBSE]
  A)
  Over a period of time done clear
  B)
  During a period of time done clear
  C)
  For a period of time  done clear
  D)
  At a point of time done clear
  View Solution play_arrow

• question_answer2)
  Loose Tools appear in the company's Balance Sheet under the head/sub-head:                                   [CBSE]
  A)
  Inventories done clear
  B)
  Non-current Assets done clear
  C)
  Other Current Assets done clear
  D)
  Stores and Spare Parts                                                    done clear
  View Solution play_arrow

• question_answer3)
  Calls-in-Advance is shown in the company's Balance Sheet under the head:                                        [CBSE]
  A)
  on-current Assets done clear
  B)
  Current Liabilities done clear
  C)
  Shareholders Funds done clear
  D)
  Non-current Liabilities done clear
  View Solution play_arrow

• question_answer4)
  As per Schedule III, Part I of the Companies Act 2013, 'Unpaid Dividend' will be presented under which of the following head/sub-head, in the Balance Sheet of a company?                                                             [CBSE]
  A)
  Reserves and Surplus done clear
  B)
  Current Liabilities done clear
  C)
  Shareholders Funds  done clear
  D)
  Contingent Liabilities done clear
  View Solution play_arrow

• question_answer5)
  Which of the following is not presented under 'Current Liabilities' in the Balance Sheet of a Company? [CBSE]
  A)
  Short-term Borrowings done clear
  B)
  Trade Payables done clear
  C)
  Short-term Provision done clear
  D)
  Deferred Tax Liabilities done clear
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• question_answer6)
  Which of the following is not a sub-head under the Current Assets?
  A)
  Cash and Cash Equivalents  done clear
  B)
  Trademarks done clear
  C)
  Short-term loans and advances done clear
  D)
  Inventories done clear
  View Solution play_arrow

• question_answer7)
  Share Forfeiture Account is the part of:                                                                              [CBSE Modified]
  A)
  Reserves and Surplus  done clear
  B)
  Share Capital done clear
  C)
  Other long-term liabilities done clear
  D)
  Other Current Liabilities done clear
  View Solution play_arrow

• question_answer8)
  Which of the following is considered as a Fixed Tangible Assets:                                            [CBSE Modified]
  A)
  Capital Advances done clear
  B)
  Capital work in progress done clear
  C)
  Provision for Warranties done clear
  D)
  Income received in advance done clear
  View Solution play_arrow

• question_answer9)
  A set of Financial Statements as per Section 2(40) of the Companies Act, 2013 does not include:
  A)
  Balance Sheet done clear
  B)
  Profit and Loss Account done clear
  C)
  Notes to Accounts done clear
  D)
  Ratio Analysis done clear
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• question_answer10)
  Share Capital does not include:
  A)
  Shares issued through private placement done clear
  B)
  Shares issued for consideration other than cash done clear
  C)
  Shares issued to Promoters in cash payment done clear
  D)
  Calls in Arrear amount on Shares done clear
  View Solution play_arrow

• question_answer11)
  Which of the following is a fixed intangible asset?
  A)
  Photocopier done clear
  B)
  Printer for office use done clear
  C)
  Computers done clear
  D)
  Mastheads and publishing titles done clear
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• question_answer12)
  Creditors and Bills payable are shown under the head:
  A)
  Provisions done clear
  B)
  Other current liabilities done clear
  C)
  Current Assets done clear
  D)
  Trade payables done clear
  View Solution play_arrow

• question_answer13)
  Securities Premium Reserve is shown under:
  A)
  Short-term Provisions      done clear
  B)
  Reserves and Surplus done clear
  C)
  Current Liabilities done clear
  D)
  Share Capital done clear
  View Solution play_arrow

• question_answer14)
  Goodwill is a :
  A)
  Fictitious Asset done clear
  B)
  Fixed Intangible Asset done clear
  C)
  Current Asset  done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer15)
  In a company's Balance Sheet Assets are shown in the order of :
  A)
  Permanence done clear
  B)
  Liquidity done clear
  C)
  Market Value      done clear
  D)
  None of these done clear
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• question_answer16)
  Claim against the company not yet acknowledged as debt, is a :
  A)
  Current Liability done clear
  B)
  Provisions  done clear
  C)
  Reserve and Surplus done clear
  D)
  Contingent Liability done clear
  View Solution play_arrow

• question_answer17)
  Which of the following is not shown under the heading of Reserves and Surplus?
  A)
  Capital Reserves done clear
  B)
  Securities Premium Reserve done clear
  C)
  Capital Redemption Reserve done clear
  D)
  Bills of Exchange done clear
  View Solution play_arrow

• question_answer18)
  Identify the correct statement:
  A)
  Bank overdraft is a long term borrowing done clear
  B)
  Prepaid expenses are shown under other current assets done clear
  C)
  Debentures issued are current liability  done clear
  D)
  Dividend is paid on debentures done clear
  View Solution play_arrow

• question_answer19)
  Which of the following is not shown under the heads of Reserves and Surplus:
  A)
  Shares options outstanding Account done clear
  B)
  Loss shown by Statement of Profit and Loss done clear
  C)
  Revaluation Reserve done clear
  D)
  Debentures Redemption Investment done clear
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• question_answer20)
  Which of the following is not part of Capital Reserve?
  A)
  Gain on Sale of Non-current Investment  done clear
  B)
  Gain on Sale of Current Investment done clear
  C)
  Gain on reissue of forfeited shares  done clear
  D)
  Gain on Sale of goods and Service done clear
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• question_answer21)
  Which of the following will be correctly associated with this statement, "Company Purchases its own shares":
  A)
  Capital Reserve  done clear
  B)
  Revaluation Reserve done clear
  C)
  Capital Redemption Reserve done clear
  D)
  Share option outstanding account done clear
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• question_answer22)
  The Market price of a share is Rs.68 but it is to be issued to employees at Rs.50. The difference of Rs.18 will be transferred to:
  A)
  Capital Reserve done clear
  B)
  Share options outstanding account done clear
  C)
  Securities Premium Reserve done clear
  D)
  Revaluation Reserve done clear
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• question_answer23)
  When some part of profit is transferred to the Debenture Redemption Reserve, General Reserve or Workmen compensation reserve etc. It is called:
  A)
  Revaluation process  done clear
  B)
  Creation of Contingent Reserve done clear
  C)
  Appropriation of Profit done clear
  D)
  Share Application money pending allotment done clear
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• question_answer24)
  Which of the following can be converted into Equity Share Capital?
  A)
  Share Warrant done clear
  B)
  Revaluation Reserve done clear
  C)
  Capital Redemption Reserve done clear
  D)
  Securities Premium Reserve done clear
  View Solution play_arrow

• question_answer25)
  If application money is received before the date of the Balance Sheet but shares are allotted after the Balance Sheet date, it is recorded as:
  A)
  Share Warrant done clear
  B)
  Application money pending allotment done clear
  C)
  Calls in Arrears done clear
  D)
  Reserve Capital done clear
  View Solution play_arrow

• question_answer26)
  _________ is the time between the acquisition of an asset for processing and its realisation into cash and cash equivalents.
  A)
  Quarterly Result done clear
  B)
  Half yearly results done clear
  C)
  Operating Cycle done clear
  D)
  Notes to Accounts done clear
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• question_answer27)
  Public Deposits with the company are shown under:
  A)
  Current Liabilities done clear
  B)
  Non-current Liabilities done clear
  C)
  Contingent Liabilities   done clear
  D)
  Current Assets done clear
  View Solution play_arrow

• question_answer28)
  Debentures ready for maturity are shown under:
  A)
  Long Term Borrowings done clear
  B)
  Short Term Borrowings done clear
  C)
  Trade Payables done clear
  D)
  Other Current Liabilities done clear
  View Solution play_arrow

• question_answer29)
  If Debentures are shown as Long-term Borrowings, then Premium payable on redemption of debenture, will be shown under:
  A)
  Other Long term liabilities done clear
  B)
  Other Current Liabilities done clear
  C)
  Trade Payable done clear
  D)
  Long-term Borrowings done clear
  View Solution play_arrow

• question_answer30)
  Bank overdraft and Cash Credit shown under:
  A)
  Cash and Cash Equivalents done clear
  B)
  Trade Payables done clear
  C)
  Short-term Borrowings done clear
  D)
  Long-term Borrowings done clear
  View Solution play_arrow

• question_answer31)
  Income received in advance will be shown under:
  A)
  Short term Provisions done clear
  B)
  Other Current Liabilities done clear
  C)
  Short-term Borrowings done clear
  D)
  Trade Payables done clear
  View Solution play_arrow

• question_answer32)
  Loans repayable on demand will be shown under:
  A)
  Long-term Borrowings done clear
  B)
  Cash and Cash Equivalents done clear
  C)
  Other Current Liabilities done clear
  D)
  Short-term Borrowings done clear
  View Solution play_arrow

• question_answer33)
  Calls in advance on shares will be shown under:
  A)
  Long-term Borrowings done clear
  B)
  Other Current Assets done clear
  C)
  Other Current Liabilities  done clear
  D)
  Short-term Borrowings done clear
  View Solution play_arrow

• question_answer34)
  Security Deposit paid by the Company for a new telephone connection (including internet broadband connection) will be shown under:
  A)
  Long term loans and advances  done clear
  B)
  Short-term loans and advances done clear
  C)
  Other Non-current Assets  done clear
  D)
  Other Non-current Liabilities done clear
  View Solution play_arrow

• question_answer35)
  Intangible assets under development does not include:
  A)
  Software under development done clear
  B)
  Intellectual property rights under process done clear
  C)
  Patents under process done clear
  D)
  Building under construction (not completed yet) done clear
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• question_answer36)
  Insurance Premium of Rs.60,000 paid by company in advance. It will be shown under:
  A)
  Long term loans and advances done clear
  B)
  Short-term loans and advances done clear
  C)
  Other Non-current Assets done clear
  D)
  Other current assets done clear
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• question_answer37)
  Office Building is under construction and it may take 3-4 years for completion, it will be shown under:
  A)
  will not be shown in Balance Sheet  done clear
  B)
  Intangible assets under development done clear
  C)
  work in progress done clear
  D)
  Capital work in progress done clear
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• question_answer38)
  Which of the following is not part of Fixed Intangible Asset:
  A)
  Brand/Trademark done clear
  B)
  Recipe and Formula done clear
  C)
  Stores and Spares done clear
  D)
  Prototype done clear
  View Solution play_arrow

• question_answer39)
  Which of the following is not part of the inventories:
  A)
  Loose Tools done clear
  B)
  Stores and Spares done clear
  C)
  Work in progress done clear
  D)
  Capital work, in progress done clear
  View Solution play_arrow

• question_answer40)
  Goods sold for Rs.20,000 and received a cheque for the same, will be shown under:
  A)
  Inventories done clear
  B)
  Trade Receivables done clear
  C)
  Other Current Assets  done clear
  D)
  Cash and Cash Equivalents done clear
  View Solution play_arrow

• question_answer41)
  Commission is Accrued Rs.2,000, it will be shown under:
  A)
  Cash and Cash Equivalents done clear
  B)
  Short-term loans and advances done clear
  C)
  Other Current Liabilities done clear
  D)
  Other Current Assets done clear
  View Solution play_arrow

• question_answer42)
  Investment made in Debentures by the company will be shown under:
  A)
  Current Investment done clear
  B)
  Non-current investment done clear
  C)
  Long-term Borrowings done clear
  D)
  Short-term Borrowings done clear
  View Solution play_arrow

• question_answer43)
  Interest Accrued but not due on loans is shown in the company's balance sheet under:
  A)
  Other Current Liabilities done clear
  B)
  Non-current investment done clear
  C)
  Long-term Borrowings done clear
  D)
  Short-term loans and advances done clear
  View Solution play_arrow

• question_answer44)
  A company has invested in Debentures of other company but interest is not received yet, it is to
  A)
  Long-term Borrowings done clear
  B)
  Short-term Borrowings done clear
  C)
  Other current Liabilities done clear
  D)
  Other Current Assets done clear
  View Solution play_arrow

• question_answer45)
  Which of the following is not part of the Short-term Provisions:
  A)
  Provision for Tax done clear
  B)
  Provision for Doubtful Debts done clear
  C)
  Provision for Expenses done clear
  D)
  Provision for Gratuity of employees done clear
  View Solution play_arrow

• question_answer46)
  Match the followings:

  1.	Trademarks	A.	Tangible fixed asset
  2.	Furniture	B.	Current Asset
  3.	Cash In hand	C.	Intangible asset
  4.	Work in progress	D.	Cash & cash equivalents

  A)
  1-C; 2-A; 3-D; 4-B done clear
  B)
  1-C; 2-A; 3-B; 4-D done clear
  C)
  1-A; 2-C; 3-B; 4-D done clear
  D)
  1-A; 2-B; 3-D; 4-C done clear
  View Solution play_arrow

• question_answer47)
  Match the followings:

  1.	Patents	A.	Tangible fixed asset
  2.	Computer and Laptops	B.	Long term borrowing
  3.	10% Debentures issued	C.	Intangible assets
  4.	Debenture with maturity period in current financial year	D.	Other Current liability

  A)
  1-C; 2-A; 3-D; 4-B done clear
  B)
  1-C; 2-A; 3-B; 4-D done clear
  C)
  1-A; 2-C; 3-B; 4-D done clear
  D)
  1-A; 2-B; 3-D; 4-C done clear
  View Solution play_arrow

• question_answer48)
  Match the followings:

  1.	Investment in debentures	A.	Non-Current Investment
  2.	Trade payable	B.	Non-current liability
  3.	Raw material	C.	Current liability
  4.	10% Debentures issued	D.	Current Asset

  A)
  1-C; 2-A; 3-D; 4-B done clear
  B)
  1-C; 2-A; 3-B; 4-D done clear
  C)
  1-A; 2-C; 3-B; 4-D done clear
  D)
  1-A; 2-C; 3-D; 4-B done clear
  View Solution play_arrow

• question_answer49)
  Match the followings:

  1.	Debtors	A.	Cash & cash equivalents
  2.	Bank balance	B.	Other current asset
  3.	Prepaid insurance	C.	Intangible asset
  4.	Mastheads and Publishing titles	D.	Trade receivable

  A)
  1-C; 2-A; 3-D; 4-B done clear
  B)
  1-D; 2-A; 3-B; 4-C done clear
  C)
  1-A; 2-C; 3-B; 4-D done clear
  D)
  1-A; 2-C; 3-D; 4-B done clear
  View Solution play_arrow

• question_answer50)
  Match the followings:

  1.	Proposed Dividend	A.	Other Current liability
  2.	Unpaid Dividend	B.	Long term provision
  3.	Public Deposit	C.	Contingent liability in notes to accounts
  4.	Provision for Provident Fund	D.	Long term borrowings

  A)
  1-C; 2-A; 3-D; 4-B done clear
  B)
  1-D; 2-A; 3-B; 4-C done clear
  C)
  1-A; 2-C; 3-B; 4-D done clear
  D)
  1-C; 2-A; 3-B; 4-D done clear
  View Solution play_arrow

• question_answer51)
  Match the followings

  1.	Goodwill	A.	Inventories
  2.	Unclaimed dividend	B.	Short term borrowing
  3.	Bank overdraft	C.	Other Current liability
  4.	Loose tools	D.	Fixed Intangible asset

  A)
  1-C; 2-A; 3-D; 4-B done clear
  B)
  1-D; 2-A; 3-B; 4-C done clear
  C)
  1-D; 2-C; 3-B; 4-A done clear
  D)
  1-A; 2-C; 3-D; 4-B done clear
  View Solution play_arrow

• question_answer52)
  Match the followings

  1.	Money received against share warrant	A.	Non-current liability
  2.	Deferred tax liability	B.	Fixed Intangible asset
  3.	Deferred tax asset	C.	Shareholders fund
  4.	Computer software	D.	Non-current asset

  A)
  1-C; 2-A; 3-D; 4-B done clear
  B)
  1-D; 2-A; 3-B; 4-C done clear
  C)
  1-D; 2-C; 3-B; 4-A done clear
  D)
  1-C; 2-B; 3-D; 4-A done clear
  View Solution play_arrow

• question_answer53)
  Match the followings

  1.	Interest due on calls in advance	A.	Other current liability
  2.	Interest due on calls in arrear	B.	Other non-current liability
  3.	Employees Provident fund	C.	Other current asset
  4.	Premium on redemption on debenture	D.	Long term provision

  A)
  1-C; 2-A; 3-D; 4-B  done clear
  B)
  1-D; 2-A; 3-B; 4-C done clear
  C)
  1-D; 2-C; 3-B; 4-A done clear
  D)
  1-A; 2-C; 3-D; 4-B done clear
  View Solution play_arrow

• question_answer54)
  Match the followings:

  1.	Sales	A.	Employee benefit expense
  2.	Wages	B.	Other income
  3.	Interest on Public deposits	C.	Revenue from operation
  4.	Interest Earned	D.	Finance cost

  A)
  1-C; 2-A; 3-D; 4-B done clear
  B)
  1-D; 2-A; 3-B; 4-C done clear
  C)
  1-C; 2-D; 3-B; 4-A done clear
  D)
  1-A; 2-C; 3-D; 4-B done clear
  View Solution play_arrow

• question_answer55)
  Match the followings:

  1.	Bonus paid	A.	Revenue from operation
  2.	Revenue from service rendered	B.	Finance cost
  3.	Interest expense	C.	Depreciation and amortization expense
  4.	Goodwill amortised	D.	Employee benefit expense

  A)
  1-C; 2-A; 3-D; 4-B  done clear
  B)
  1-D; 2-A; 3-B; 4-C done clear
  C)
  1-D; 2-C; 3-B; 4-A done clear
  D)
  1-A; 2-C; 3-D; 4-B done clear
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• question_answer56)
  Capital Reserve is always comes out from the revenue profit:
  A)
  True done clear
  B)
  False done clear
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• question_answer57)
  Current liabilities are payable within 3 months:
  A)
  True done clear
  B)
  False done clear
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• question_answer58)
  Balance of share forfeiture account is to be deducted from the share capital:
  A)
  True done clear
  B)
  False done clear
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• question_answer59)
  Securities premium is to be shown under the head Reserve & surplus:
  A)
  True done clear
  B)
  False done clear
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• question_answer60)
  A company's Balance Sheet is to be prepared in a vertical form:
  A)
  True done clear
  B)
  False done clear
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• question_answer61)
  Match the following :

  1.	Trade Receivables with Operating Cycle of 20 Months and Expected Realisation Period is 15 months	A.	Non-current Assets
  2.	Trade Payables with operating cycle of 10 months and Expected period of payment is 15 months	B.	Current Liabilities
  3.	Trade Receivables with Operating Cycle of 11 Months and Expected Realisation Period is 15 months	C.	Non-current Liabilities
  4.	Trade Payables with operating cycle of 18 months and Expected period of payment is 15 months	D.	Current Assets

  A)
  1 D; 2 C ; 3 B ; 4 A done clear
  B)
  1 D; 2 C ; 3 A ; 4 B done clear
  C)
  1 D; 2 B ; 3 A ; 4 C done clear
  D)
  1 D; 2 A ; 3 C ; 4 B done clear
  View Solution play_arrow

• question_answer62)
  Match the following:

  1.	Non-Current Assets	A.	Short term Provisions
  2.	Current Assets	B.	Long term Loans and Advances
  3.	Current Liabilities	C.	Long term Provisions
  4.	Non-Current Liabilities	D.	Trade Receivables

  A)
  1 B; 2 D; 3 C; 4 A done clear
  B)
  1 B; 2 C; 3 A; 4 D done clear
  C)
  1 B; 2 C; 3 D; 4 A done clear
  D)
  1 B; 2 D; 3 A, 4 C done clear
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