NCERT MCQ ON Financial Statements – I :
Question 1.
The financial statements consist of:
(a) Trial balance
(b) Profit and Loss account
(c) Balance sheet
(d) (a) & (c)
(e) (b) & (c)Answer
Answer: (e) (b) & (c)
Question 2.
Choose the correct chronological order of ascertainment of the following profits from the profit and loss account:
(a) Operating Profit, Net Profit, Gross Profit
(b) Operating Profit, Gross Profit, Net Profit
(c) Gross Profit, Operating Profit, Net Profit
(d) Gross Profit, Net Profit, Operating ProfitAnswer
Answer: (c) Gross Profit, Operating Profit, Net Profit
Question 3.
While calculating operating profit, the following are not taken into account.
(a) Normal transactions
(b) Abnormal items
(c) Expenses of a purely financial nature
(d) (b) & (c)
(e) (a) & (c)Answer
Answer: (c) Expenses of a purely financial nature
Question 4.
Which of the following is correct:
(a) Operating profit = Operating profit – Non-operating expenses – Non-operating incomes
(b) Operating profit = Net profit + Non-operating expenses + Non-operating incomes
(c) Operating profit = Net profit + Non-operating expenses – Non-operating incomes
(d) Operating profit = Net profit – Non-operating expenses + Non-operating incomesAnswer
Answer: (c) Operating profit = Net profit + Non-operating expenses – Non-operating incomes
State True or False
Question 1.
Gross profit is total revenue.Answer
Answer: (e) (b) & (c)
Question 2.
In trading and profit and loss account, opening stock appears on the debit side because it forms the part of the cost of sales for the current accounting year.Answer
Answer: (e) (b) & (c)
Question 3.
Rent, rates and taxes is an example of direct expenses.Answer
Answer: (e) (b) & (c)
Question 4.
If the total of the credit side of the profit and loss account is more than the total of the debit side, the difference is the net profit.Answer
Answer: (e) (b) & (c)
Match the items given under ‘A’ with the correct items under ‘B’
| Column A | Column B |
| I. Closing stock is credited to | (a) Trial balance |
| II. Accuracy of book of account is tested by | (b) Trading account |
| III.On returning the goods to seller, the buyer sends | (c) Credit note |
| IV.The financial position is determined by | (d) Balance sheet |
| V. On receiving the returned goods from the buyer, the seller sends | (e) Debit note |
Answer
Answer:
| Column A | Column B |
| I. Closing stock is credited to | (b) Trading account |
| II. Accuracy of book of account is tested by | (a) Trial balance |
| III.On returning the goods to seller, the buyer sends | (e) Debit note |
| IV.The financial position is determined by | (d) Balance sheet |
| V. On receiving the returned goods from the buyer, the seller sends | (c) Credit note |
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