MCQ Questions for Class 12 Accountancy Chapter 8 Financial Statements of a Company with Answers

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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