Financial Statements of a Company MCQ Questions Class 12 Accountancy Part II Chapter 3
NCERT MCQ Questions for Class 12 Accountancy Part II Chapter 3 Financial Statements of a Company. Financial Statements of a Company MCQ Questions with Answers from Class 12 Accountancy Part II.
(1) Financial Statements of company are the outcome of the summarising process of accounting and acts as a basis for ————.
(a) Payment of dividend to shareholders
(b) Making financial decision
(c) Conclusion about the profitability and financial position of business
(d) Determining only the profitability of the business.
Ans: (c) Conclusion about the profitability and financial position of business
(2) Financial statements are meant for communicating financial information with ——–.
(a) Tax authorities
(b) Government
(c) Employees investor
(d) All of the above
Ans: (d) all of the above
(3) The adjectives of preparing a financial statement involves ———.
(a) Information about cash flows
(b) Information about earning capacity of business
(c) Judging effectiveness of management
(d) All of these
Ans: (d) All of these
(4) The financial Statement that depicts the movements of funds and changes in financial position of the business is called ——–.
(a) Balance Sheet
(b) Comparative balance sheet
(c) Cash flow statement
(d) Opening balance sheet
Ans: (c) Cash flow statement
(5) The assets are recorded on historical cost basis in the financial statements. This is because of ———.
(a) Money measurement postulate
(b) Realizations postulates
(c) Going concern postulates
(d) Both (b) and (c)
Ans: (c) Going concern postulates.
(6) According to this postulate, while preparing profit and loss A/c of a business, the revenue is included in the sales of the year in which it is undertaken even if the sale price is received over a number of years. Name the postulate ——–.
(a) Materiality postulate
(b) Realisation postulates
(c) Money measurement postulate
(d) Going concern Postulates.
Ans: (b) Realisation postulates
(7) Money received against share warrants comes under which heads of equity and liabilities in a Balance Sheet?
(a) Non – current Liabilities
(b) Current Liabilities
(c) Shareholder’s Fund
(d) Share application money pending allotment
Ans: (c) Shareholder’s Fund
(8) Capital work in progress comes under ——— of a balance sheet.
(a) Current asset
(b) Liabilities
(c) Fixed asset
(d) Current liabilities
Ans: (c) Final asset
- In case you have missed:- Previous Chapter MCQ Questions
(9) The shareholder’s fund are sub-classified on the Balance Sheet as ——–.
(a) Share capital
(b) Reserves and surplus
(c) Money received against share warrant
(d) All of these
Ans: (d) All of these.
(10) Debenture Redemption Reserves are classified in the balance sheet under ——–.
(a) Current Liabilities
(b) Long term Liabilities
(c) Reserves & Surplus
(d) Both (a) and (b).
Ans: (c) Reserves & Surplus.
(11) Share option outstanding account in balance sheet is classified under ——–.
(a) Shareholder’s fund
(b) Current Assets
(c) Current Liabilities
(d) Reserve & Surplus
Ans: (d) Reserve & Surplus.
(12) A Reserve specifically represented by earn marked investment is termed as ——-.
(a) Specific Reserve
(b) General Reserve
(c) Fund
(d) Surplus
Ans: (c) Fund
(13) An item in Balance sheet is classified as “Current” if —–.
(a) It is expected to be settled within 12 months
(b) It is involved in entity’s operating cycle.
(c) Is equivalent to cash
(d) All of the above
Ans: (d) All of the above
(14) Loans that are repayable in more than twelve months are termed as ——-.
(a) Short-term borrowings
(b) Current liabilities
(c) Long-term borrowings
(d) Current maturities.
Ans: (c) Long term borrowings
(15) Differed tax assets/Liabilities are always considered as “non-current” in accordance with ——–.
(a) Schedule II
(b) Schedule III
(C) Schedule IV
(d) Schedule I
Ans: (b) Schedule III
(16) “Proposed Dividend” comes under ——— in Balance Sheet.
(a) Current Liability
(b) Reserves & Surplus
(c) Contingent Liability
(d) Current Asset
Ans: (c) Contingent Liability
- In case you have missed:- Next Chapter MCQ Questions
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