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Financial Statements of Companies Class 12 Accountancy MCQs Pdf
Multiple Choice Questions
Select the best alternate and check your answer with the answers given at the end of the book.
1. Balance sheet of a company is required to be prepared in the format given in ………………………
(A) Schedule III Part II
(B) Schedule III Part I
(C) Schedule III Part III
(D) Table A
Answer
Answer: B
2. As per Companies Act, the Balance Sheet of a company is required to be presented in ………………………
(A) Horizontal Form
(B) Vertical Form
(C) Either Horizontal or Vertical Form
(D) Neither ofthe above
Answer
Answer: B
3. 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
Answer: D
4. According to prescribed order of assets in a Company’s Balance Sheet ……………………… assets should be shown first of all.
(A) Non-Current Assets
(B) Current Assets
(C) Current Investments
(D) Loans and Advances
Answer
Answer: A
5. In a Company’s Balance Sheet …………………. appear under the head ‘non-current assets’.
(A) Goodwill
(B) Patents
(C) Vehicles
(D) All of the above
Answer
Answer: D
6. Calls in Arrears appear in a Company’s Balance Sheet under ………………..
(A) Reserve & Surplus
(B) Shareholder’s Funds
(C) Contingent Liabilities
(D) Short-term Borrowings
Answer
Answer: B
7. Calls in advance appear in a Company’s Balance Sheet under ………………..
(A) Share Capital
(B) Current Liability
(C) Long-term Borrowings
(D) Reserve & Surplus
Answer
Answer: B
8. 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
Answer: B
9. Fixed Deposits appear in a Company’s Balance Sheet under :
(A) Current Assets
(B) Current Liabilities
(C) Long-term Provisions
(D) Long-term Borrowings
Answer
Answer: D
10. Goodwill appears in a Company’s Balance Sheet under the Sub-head ………………….
(A) Unamortized Assets
(B) Non-Current Investment
(C) Intangible Assets
(D) Tangible Assets
Answer
Answer: C
11. Share Forfeiture Account appears in a Company’s Balance Sheet under the Sub-head ……………….
(A) Share Capital
(B) Reserve & Surplus
(C) Contingent Liability
(D) Commitments
Answer
Answer: A
12. Expenses allowed on issue of shares appears in a Company’s Balance Sheet under :
(A) Share Capital
(B) Current Liability
(C) Unamortized Expenditure
(D) Contingent Liability
Answer
Answer: C
13. Securities Premium Reserve appears in a Company’s Balance Sheet under :
(A) Share Capital
(B) Long-term Provision
(C) Short-term Provision
(D) Reserve & Surplus
Answer
Answer: D
14. Prepaid Expenses appear in a Company’s Balance Sheet under the Sub-head ………………
(A) Other Current Assets
(B) Short-term Loans & Advances
(C) Intangible Assets
(D) Other Non-Current Assets
Answer
Answer: A
15. ……………… 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
Answer: B
16. Provision for Tax appears in a Company’s Balance Sheet under the Sub-head ……………………
(A) Short-term Provisions
(B) Reserves and Surplus
(C) Long-term Provisions
(D) Other Current Liabilities
Answer
Answer: A
17. Bills Receivables appear in a Company’s Balance Sheet under the Sub-head ……………………..
(A) Current Investments
(B) Cash Equivalents
(C) Trade Receivables
(D) Short term Loans and Advances
Answer
Answer: C
18. Trade Investments appear in a Company’s Balance Sheet under the Sub-head ………………….
(A) Current Investments
(B) Non-Current Investments
(C) Intangible Assets
(D) Short-term Loans and Advances
Answer
Answer: B
19. ‘Claims against the Company not acknowledged as debts’ is shown under the head ……………….
(A) Current Liabilities
(B) Non-Current Liabilities
(C) Commitments
(D) Contingent Liabilities
Answer
Answer: D
20. 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
Answer: C
21. 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
Answer: C
22. Interest accrued but not due on loans 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
Answer: C
23. 6% Debentures appear in a Company’s Balance Sheet under the Sub-head ………………….
(A) Long-term Provisions
(B) Long-term Borrowings
(C) Other Current Liabilities
(D) Other Long-term Liabilities
Answer
Answer: B
24. Interest accrued on Investments appear in a Company’s Balance Sheet under the Sub-head ………………….
(A) Non-Current Investments
(B) Current Investments
(C) Other Current Assets
(D) Other Non-Current Assets
Answer
Answer: C
25. ‘Accumulated Dividend Arrears’ on preference shares is shown in the Company’s Balance Sheet as :
(A) Current Liability
(B) Contingent Liability
(C) Commitments
(D) Short-term Provision
Answer
Answer: C
26. 50,000, 9% Debentures redeemable within 12 months of the date of Balance Sheet will be shown under :
(A) Short-term Borrowings
(B) Short-term Provision
(C) Other Current Liability
(D) Trade Payables
Answer
Answer: C
27. Which one of the following is Commitment?
(A) Proposed Dividend
(B) Interim Dividend
(C) Unpaid/Unclaimed Dividend
(D) Dividend Arrears on Cumulative Preference Shares
Answer
Answer: D
28. Which of the following items is shown under the head ‘Current Assets’ while preparing the Balance Sheet of a company?
(A) Trade Investment
(B) Underwriting Commission
(C) Inventories
(D) Livestock
Answer
Answer: C
29. While preparing the Balance Sheet of a company ‘Underwriting Commission’ is shown under which head?
(A) Unamortized Expenditure
(B) Current Assets
(C) Non-Current Assets
(D) Current Liability
Answer
Answer: A
30. Which of the following items is shown under the head ‘Current Liabilities’ while preparing the Balance Sheet of a company?
(A) Securities Premium Reserve
(B) Debentures
(C) Livestock
(D) None of the above
Answer
Answer: D
31. 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
Answer: D
32. Which of the following items is shown under the head ‘Non-Current Assets’ while preparing the Balance Sheet of a company?
(A) Underwriting Commission
(B) Current Investment
(C) Inventory
(D) Patents
Answer
Answer: D
33. Under which heading the item ‘Bills Discounted but not yet matured’ will be shown in the Balance Sheet of a company?
(A) Current Liability
(B) Current Assets
(C) Contingent Liabilities
(D) Unamortized Expenditure
Answer
Answer: C
34. 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
Answer: C
35. 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
Answer: A
36. 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 Fully Paid
(B) Subscribed but not fully paid
(C) Any of the above
(D) None of the above
Answer
Answer: B
37. A Company has issued 2,00,000 Equity Shares of ₹10 each and it has called the entire nominal value of the share. It has received the entire amount except final call of ₹3 per share on 5,000 shares. Subscribed Capital will be shown as follows:
Answer
Answer: C
38. Change in Inventories means :
(A) Difference between Opening Inventories and Closing Inventories
(B) Difference between Closing Inventories and Opening Inventories
(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
Answer: A
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