Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 8 Financial Statements of a Company with Answers Pdf free download. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. We have provided Financial Statements of a Company Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well.
Financial Statements of a Company Class 12 MCQs Questions with Answers
Financial Statements Of A Company Class 12 MCQ Question 1.
Which of the following is the element of financial statements?
(a) Balance Sheet
(b) Profit & Loss A/c
(c) Both (a) and (b)
(d) None of these
Answer
Answer: (c) Both (a) and (b)
Financial Statements Of A Company MCQ Question 2.
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
Answer: (c) Anditor’s Report
MCQ Of Financial Statements Of A Company Class 12 Question 3.
Equity ₹ 90,000 Liabilities ₹ 60,000 Profit of the year ₹ 20,000. Then total assets will be :
(a) ₹ 1.70,000
(b) ₹ 1,50,000
(c) ₹1,10,000
(d) ₹ 80,000
Answer
Answer: (a) ₹ 1.70,000
MCQ On Financial Statements Of A Company Class 12 Question 4.
The reserve which is created for a particular (specific) purpose and which is a charge against revenue is called:
(a) Capital Reserve
(b) General Reserve
(c) Secret Reserve
(d) Specific Reserve
Answer
Answer: (d) Specific Reserve
Financial Statements MCQ Question 5.
An Annual Report is issued by a company to its:
(a) Directors
(b) Authors
(c) Shareholders
(d) Management
Answer
Answer: (c) Shareholders
Financial Statements MCQ Class 12 Question 6.
The profit and loss disclosed by the accounts of a company is:
(a) Transferred to share capital account
(b) Shown under the head of ‘Current liabilities’ and provisions
(c) Shown under the head ‘Reserves and Surplus
(d) None of these
Answer
Answer: (c) Shown under the head ‘Reserves and Surplus
Financial Statements Disclose MCQ Question 7.
The assets of a business can be classified as :
(a) Fixed and Non-fixed Assets
(b) Tangible and Intangible Assets
(c) Non-Current and Current Asset
(d) None of these
Answer
Answer: (c) Non-Current and Current Asset
Financial Statements Of Company MCQ Question 8.
The term financial statements includes :
(a) Statement of Profit & Loss
(b) Balance Sheet
(c) Statement of Profit & Loss and Balance Sheet
(d) None of these
Answer
Answer: (c) Statement of Profit & Loss and Balance Sheet
MCQs Of Financial Statements Of A Company Question 9.
Balance Sheet is a :
(a) Account
(b) Statement
(c) Both (a) and (b)
(d) All the above
Answer
Answer: (b) Statement
Financial Statements Class 12 MCQ Question 10.
Financial statements are the product of accounting process.
(a) First
(b) Second
(c) End
(d) None of these
Answer
Answer: (c) End
Question 11.
Financial statements disclose :
(a) Monetary information
(b) Qualitative information
(c) Non-monetary information
(d) All the above
Answer
Answer: (a) Monetary information
Question 12.
Statement of Profit & Loss is also called………:
(a) Operating Profit
(b) Balance Sheet
(c) Income Statement
(d) Trading Account
Answer
Answer: (c) Income Statement
Question 13.
Preliminary expenses are shown in the Balance Sheet under the head:
(a) Non-current assets
(b) Current assets
(c) Non-current liabilities
(d) Deducted from securities premium reserve
Answer
Answer: (d) Deducted from securities premium reserve
Question 14.
Debit Balance of Profit & Loss Statement will be shown on:
(a) Assets Side of Balance Sheet
(b) Liabilities Side of Balance Sheet
(c) Under the head Reserve & Surplus
(d) Under the head Reserves and Surplus as a negative item
Answer
Answer: (d) Under the head Reserves and Surplus as a negative item
Question 15.
Patents and copyrights fall under the category of:
(a) Current Assets
(b) Liquid Assets
(c) Intangible Assets
(d) None of these
Answer
Answer: (c) Intangible Assets
Question 16.
Goodwill falls under which category of assets:
(a) Current Assets
(b) Tangible Assets
(c) Intangible Assets
(d) None of the above
Answer
Answer: (c) Intangible Assets
Question 17.
Contingent Liabilities are exhibited under the heading:
(a) Fixed Liabilities
(b) Current Liabilities
(c) As a footnote
(d) None of these
Answer
Answer: (c) As a footnote
Question 18.
Provision for Provident Funds is shown in the Balance Sheet of a company under the head :
(a) Reserves and Surplus
(b) Non-current Liabilities
(c) Provision
(d) Contingent Liabilities
Answer
Answer: (b) Non-current Liabilities
Question 19.
Preliminary Expenses are shown in the Balance Sheet under which head ?
(a) Fixed Assets
(b) Reserves and Surplus
(c) Loans & Advances
(d) None of these
Answer
Answer: (d) None of these
Question 20.
Financial Statements are :
(a) Anticipated facts
(b) Recorded facts
(c) Estimated facts
(d) None of these
Answer
Answer: (b) Recorded facts
Question 21.
The term current assets includes :
(a) Stock
(b) Debtors
(c) Cash
(d) All of these
Answer
Answer: (d) All of these
Question 22.
Which of the following is not a part of financial statement of a company ?
(a) Profit & Loss A/c
(b) Balance Sheet
(c) Ledger Account
(d) Cash Flow Statement
Answer
Answer: (c) Ledger Account
Question 23.
Under which heading of Balance Sheet is general reserve shown:
(a) Miscellaneous Expenditure
(b) Share Capital
(c) Reserves & Surplus
(d) None of these
Answer
Answer: (c) Reserves & Surplus
Question 24.
Current Assets on the Assets side of Balance Sheet of a Company includes:
(a) Sundry Debtors
(b) Cash in hand
(c) Stock
(d) All of these
Answer
Answer: (d) All of these
Question 25.
As per provisions of Companies Act, 2013 under which Section, the final accounts of a company is prepard :
(a) 128
(b) 210
(c) 129
(d) 212
Answer
Answer: (c) 129
Question 26.
According to which part of Schedule III of the Indian Companies Act, 2013, Indian companies have to prepare Balance Sheet:
(a) Part 1
(b) Part 2
(c) Part 3
(d) Part 4
Answer
Answer: (a) Part 1
Question 27.
Balance sheet of companies is now prepared in :
(a) Horizontal Form
(b) Vertical Form
(c) Either (a) or (b) Form
(d) None of these
Answer
Answer: (b) Vertical Form
Question 28.
Goodwill of a company is shown on the assets side of the Balance Sheet under the head.
(a) Current Assets
(b) Non-current Assets
(c) Miscellaneous Expenditure
(d) None of these
Answer
Answer: (b) Non-current Assets
Question 29.
The form of Balance Sheet as per Companies Act, 2013 is:
(a) Horizontal
(b) Horizontal or Vertical
(c) Vertical
(d) None of these
Answer
Answer: (c) Vertical
Question 30.
Which of the following assets is not shown undeer the head ‘Fixed Asset’ in the Balance Sheet ?
(a) Goodwill
(b) Bills Receivable
(c) Buildings
(d) Vehicle
Answer
Answer: (b) Bills Receivable
Question 31.
Securities Premium Account is shown on the liabilities side in the Balance Sheet Under heading
(a) Reserves and Surplus
(b) Current Liabilities and Provisions
(c) Share Capital
(d) Contingent Liabilities
Answer
Answer: (a) Reserves and Surplus
Question 32.
Debentures are shown in the Balance Sheet under the head of:
(a) Short-term Loan
(b) Secured Loan
(c) Current Liability
(d) Share Capital
Answer
Answer: (b) Secured Loan
Question 33.
Divident is usually paid :
(a) On Authorised Capital
(b) On Ussued Capital
(c) On Paid-up Capital
(d) On Called-up Capital
Answer
Answer: (c) On Paid-up Capital
Question 34.
Amount set aside to meet losses due to bad debts is called:
(a) Reserve
(b) Provision
(c) Liability
(d) None of these
Answer
Answer: (b) Provision
Question 35.
Which Section of the Companies Act, 2013 requires that the Balance Sheet to be prepared in prescribed form ?
(a) Section 128
(b) Section 130
(c) Section 129
(d) Section 212
Answer
Answer: (c) Section 129
Question 36.
The prescribe from the Balance Sheet has given in the Schedule:
(a) VI Part I
(b) VI Part II
(c) III Part I
(d) VII Part IV
Answer
Answer: (c) III Part I
Question 37.
Share capital is shown in Balance Sheet under. the head ?
(a) Authorised Capital
(b) Issued Capital
(c) Paid-up Capital
(d) Shareholders’ Funds
Answer
Answer: (d) Shareholders’ Funds
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