HAPTER 3: Financial Statements of a Company NCERT MCQ CLASS 12TH ACCOUNTS | EDUGROWN
NCERT MCQ ON Financial Statements of a Company:
Question1: ___________ is conducted by bankers and government
- a) External Analysis
- b) Internal Analysis
- c) External Analysis and Internal Analysis
- d) None of the options
Answer: External Analysis
Question2: Bank overdraft is shown in the balance sheet under the
- a) Short Term Borrowings
- b) Non-current liabilities
- c) Non Current assets
- d) None of the options
Answer: Short Term Borrowings
Question3: An example of fixed asset is
- a) Live stock
- b) Value stock
- c) Income stock
- d) None of the options
Answer: Live stock
Question4: The assets held by a business which can be converted in the form of cash, without disturbing the normal operations of a business
- a) Current assets
- b) Tangible assets
- c) Intangible assets
- d) Fixed assets
Answer: Current assets
Question5: The return which the company pays on borrowed funds is termed as
- a) All of the options
- b) Interest
- c) Dividend
- d) Bonus
Answer: All of the options
Question6: The following is(are) the type(s) of capital budgeting decision(s)
- a) All of the options
- b) Diversification
- c) Replacements
- d) Expansion
Answer: All of the options
Question7: The following is(are) the external source(s) of cash
- a) All of the options
- b) Long terms loans
- c) Issue of new shares
- d) Short term borrowings
Answer: All of the options
Question8: The total cost that arises when the quantity produced is increased by one unit is called
- a) Marginal cost
- b) Average cost
- c) Fixed cost
- d) None of the options
Answer: Marginal cost
Question9: Current assets are also referred to as
- a) Working capital
- b) Investments
- c) Inventory
- d) None of the options
Answer: Working capital
Question10: Carriage Inward is normally debited to ____
- a) Manufacturing Account
- b) Profit and Loss account
- c) Capital Account
- d) None of the options
Answer: Manufacturing Account
Question11: Reliability of financial analysis depends upon the
- a) Reliability of financial data
- b) Reliability of Customer
- c) Reliability of financial data and Reliability of Customer
- d) None of the options
Answer: Reliability of financial data
Question12: Objectives of analysis and interpretation of financial statements are
- a) All of the options
- b) Progress
- c) Position
- d) Prospects
Answer: All of the options
Question13: Sub- headings are Non Current Liabilities are
- a) All of the options
- b) Long Term borrowing
- c) Deferred Tax Liabilities
- d) Long Term Provisions
Answer: All of the options
Question14: Main headings of assets are
- a) Current Assets and Non Current assets
- b) Current Assets
- c) Non Current assets
- d) None of the options
Answer: Current Assets and Non Current assets
Question15: Main headings of the liability side of a company balance sheet
- a) All of the options
- b) Shareholders Fund
- c) Current Liabilities
- d) Non Current Liabilities
Answer: All of the options
Question16: Financial Statement provide a summary of
- a) All of the options
- b) Assets
- c) Liabilities
- d) Capital
Answer: All of the options
Question17: Calls in advance is to be shown under the heading of
- a) Current Liabilities
- b) Current Assets
- c) Current Liabilities and Current Assets
- d) None of the options
Answer: Current Liabilities
Question18: Goodwill is shown under which subheading
- a) Intangible Assets
- b) Current Assets
- c) Current Liability
- d) None of the options
Answer: Intangible Assets
Question19: Prepaid Expenses is
- a) Current Assets
- b) Current Liabilities
- c) Long term loan
- d) None of the options
Answer: Current Assets
Question20: Non Current Assets is
- a) Patents and Trade Marks
- b) Bills Receivables
- c) Prepaid Expenses
- d) Debtors
Answer: Patents and Trade Marks
Question21: Security Premium is show under which major head
- a) Shareholders fund
- b) Current Liabilities
- c) Current Assets
- d) None of the options
Answer: Shareholders fund
Question22: Provision for Provident Fund comes under
- a) Long-term Provision
- b) Trade Payable
- c) Other Current Liabilities
- d) None of the options
Answer: Long-term Provision
Question23: Sinking Fund is shown under which subheading
- a) Reserve and Surplus
- b) Trade Payable
- c) Non Current Liabilities
- d) None of the options
Answer: Reserve and Surplus
Question24: Authorised Capital is shown under which major heading in balance sheet
- a) Shareholders Fund
- b) Current Liability
- c) Current Assets
- d) None of the options
Answer: Shareholders Fund
Question25: Debenture is shown under which major heading in balance sheet
- a) Non Current Liabilities
- b) Other Current Liabilities
- c) Current Liability
- d) None of the options
Answer: Non Current Liabilities
Question26: Example of Short-term Provision is
- a) Provision for Tax
- b) Debentures
- c) Loan
- d) None of the options
Answer: Provision for Tax
Question27: Provision for Tax is our
- a) Liability
- b) Assets
- c) Liability and Assets
- d) None of the options
Answer: Liability
Question28: Bills Payable shown under major heading Current Liability and Subheading
- a) Trade Payable
- b) Short-term Provision
- c) Other Current Liabilities
- d) None of the options
Answer: Trade Payable
Question29: Unclaimed Dividend shown under major heading Current Liability and Subheading
- a) Other Current Liabilities
- b) Trade Payable
- c) Short-term Provision
- d) None of the options
Answer: Other Current Liabilities
Question30: Unclaimed Dividend is shown under which major heading in balance sheet
- a) Current Liability
- b) Equity and Liability
- c) Current Assets
- d) None of the options
Answer: Current Liability
Question31: Proposed Dividend shown under major heading Current Liability and Subheading
- a) Short-term Provision
- b) Trade Payable
- c) Other Current Liabilities
- d) None of the options
Answer: Short-term Provision
Question32: Proposed Dividend is shown under which major heading in balance sheet
- a) Current Liability
- b) Current Assets
- c) Equity and Liability
- d) None of the options
Answer: Current Liability
Question33: Miscellaneous Expenditure are
- a) All of the options
- b) Preliminary Expenses
- c) Discount allowed on the issue of shares/deb
- d) Development expenditure not adjusted
Answer: All of the options
Question34: Fixed Assets subheading is divided into
- a) All of the options
- b) Tangible
- c) Intangible Assets
- d) Capital work in progress
Answer: All of the options
Question35: In Balance Sheet Bills Payable is shown under the
- a) Current Liabilities
- b) Current Assets
- c) Equity and Liability
- d) None of the options
Answer: Current Liabilities
Question36: Long term Liabilities is
- a) All of the options
- b) Bonds
- c) Debenture
- d) Loans from Banks
Answer: All of the options
Question37: Non Current Liabilities classified in balance sheet
- a) All of the options
- b) Long term borrowings
- c) Deferred tax liabilities
- d) Other long term liabilities
Answer: All of the options
Question38: Financial Statement also called
- a) Final Accounts
- b) Profit & Loss A/c
- c) Trading A/c
- d) None of the options
Answer: Final Accounts
Question39: Those expenses which paid in advance by the firm
- a) Prepaid expenses
- b) Accrued income
- c) Prepaid expenses and Accrued income
- d) None of the options
Answer: Prepaid expenses
Question40: Prepaid expenses are shown under
- a) Other current assets
- b) Inventories
- c) Cash Equivalents
- d) None of the options
Answer: Other current assets
Question41: 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: A
Question42: Bills Receivables appear in a Company Balance Sheet under the Sub-head
a) Current Investments
b) Cash Equivalents
c) Trade Receivables
d) Short term Loans and Advances
Answer: C
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