Accountancy MCQs for Class 12 with Answers Chapter 10 Financial Statements of Companies

Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 10 Financial Statements of Companies. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Students can solve NCERT Class 12 Accountancy Financial Statements of Companies MCQs Pdf with Answers to know their preparation level.

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:
Accountancy MCQs for Class 12 with Answers Chapter 10 Financial Statements of Companies

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


We hope the given Accountancy MCQs for Class 12 with Answers Chapter 10 Financial Statements of Companies will help you. If you have any query regarding CBSE Class 12 Accountancy Financial Statements of Companies MCQs Pdf, drop a comment below and we will get back to you at the earliest.