CBSE Questions for Class 11 Commerce Accountancy Financial Statements 1 Quiz 10 - MCQExams.com

The purpose of making trading account ___________________.
  • To know the financial position of business
  • To ascertain the gross profit/loss'
  • To ascertain the net profit/loss'
  • None of the above.
The correct sequence in preparation of periodical financial statement would be :
$$1.$$ Preparation of balance sheet
$$2.$$ Preparation of cash flow statement
$$3.$$ Preparation of trial balance
$$4.$$ Preparation of Profit and Loss A/c
Select the correct answer from the option given below.
  • $$4, 2, 1, 3$$
  • $$3, 4, 1, 2$$
  • $$2, 4, 3, 1$$
  • $$1, 3, 2, 4$$
Which of the following approach can be used for marshalling of balance sheet?
  • Permanence order or according to purpose
  • Liquidity order or according to time
  • Either (A) or (B)
  • None of the above
Who appoints the auditors of a company?
  • Shareholders
  • Central Government
  • Board of directors
  • Registrar of companies
The financial position of the business on a given date is reported on the ________________.
  • Income Statement
  • Balance Sheet
  • Statement of Changes in Owner's Equity
  • Statement of Flows
Opening Inventory Rs.1,00,000, Purchase Rs.4,00,000, Sales Rs.3,00,000, Selling price -1/3rd on cost. Value of closing inventory as per physical verification Rs.2,00,The estimated cost of missing inventory is __________.
  • Nil
  • Rs.1,00,000
  • Rs.75,000
  • None of these
If you are going to put Rs. $$1,00,000$$ in a fixed deposit for a year at $$10\%$$ rate of interest, then you know how much interest your money will earn. What kind of a decision-making condition is this?
  • Certain
  • Uncertain
  • Risk
  • Normal
Which of the following statement is correct?
  • If there is gross loss in trading account then profit and loss account will also net loss alwasy
  • Balance sheet get tally even if there is error of principle
  • In balance sheet bank balance as per pass will be shown
  • All of the above
The arrangement of assets and liabilities in accordance with a particular order is known as _________ of balance sheet.
  • Tallying
  • Marking
  • Ruling
  • Marshalling
If the rate of gross profit increases in the current financial year, the same may happen due to which of the following reason?
  • There is omission of purchases which was not accounted for
  • Closing stock was valued at higher price
  • Selling price has been increase without corresponding increase in cost
  • All of the above
While preparing final account, to make provision for bad debts which of the following adjustment entry will be passed?
  • Debtors A/c Dr.

    To Profit and Loss A/c
  • Provision for Bad Debts A/c Dr.

    To Debtors A/c
  • Provision for Bad Debts A/c Dr.

    To Trading A/c
  • Profit and Loss A/c Dr.

    To Provision for Bad Debts A/c
Cost of goods sold excludes.
  • Opening Stock
  • Carriage inward
  • Wages and Salary
  • Postage and Stamps
Arrange the following assets as per liquidity order.
I. Debtors
II. Building
III. Cash and Bank
IV. Stock
Select the correct answer from the options given below.
  • II, III, I, IV
  • III, I, IV, II
  • I, IV, III, II
  • I, IV, II, III
Arrange the following assets as per liquidity order.
I. Cash and Bank
II. Building
III. Investment
IV. Stock
Select the correct answer from the options given below.
  • II, III, I, IV
  • I, II, III, IV
  • I, IV, III, II
  • I, IV, II, III
Another name for the balance sheet is __________________.
  • Statement of Operations
  • Statement of Financial Position
  • Both (A) and (B)
  • None of the above
Opening stock $$Rs. 15,000$$, Closing stock $$Rs. 6,000$$, Total purchase during the year $$Rs. 30,000$$. Given that opening stock inadvertently includes postage stamps of $$Rs. 1,500$$. Find the cost of goods sold.
  • $$Rs. 40,000$$
  • $$Rs. 39,000$$
  • $$RS. 37,500$$
  • $$Rs. 36,000$$
Arrange the following assets as per permanence order.
I. Cash and Bank
II. Building
III. Investment
IV. Stock
Select the correct answer from the options given below.
  • II, III, I, IV
  • I, II, III, IV
  • I, IV, III, II
  • II, III, IV, I
While preparing final account, to make provision for discount on debtors, which of the following adjustment entry will be passed?
  • Provision for Discount on Debtors A/c Dr.

    To Debtors A/c
  • Profit and Loss A/c Dr

    To Provision for Discount on Debtors A/c
  • Provision for Discount on Debtors A/c Dr.

    To Trading A/c
  • Debtors A/c Dr.

    To Provision for Discount on Debtors A/c
In _______, approach assets which are to be used for long term in the business and are not meant to be sold are presented first and assets which are most liquid such as cash in hand, are presented at the bottom.
  • Alphabetical order
  • Permanence order
  • Liquidity order
  • None of the above
While preparing final account, to adjust prepaid expenses which of the following adjustment entry will be passed?
  • Prepaid Expenses A/c Dr.

    To Expenses A/c
  • Outstanding Expenses A/c Dr.

    To Prepaid Expenses A/c
  • Prepaid Expenses A/c Dr.

    To Outstanding Expenses A/c
  • Prepaid Expenses A/c Dr.

    To Profit and Loss A/c
The value of closing stock is
  • $$Rs. 9,000$$
  • $$Rs. 4,000$$
  • $$Rs. 8,000$$
  • $$Rs. 7,000$$
Following information is available from the books of Mr. Z
Rs.
Expenses paid during the year
Expenses outstanding on $$1-4-2013$$
Expenses prepaid on $$1-4-2013$$
Expenses outstanding on $$31-3-2014
Expenses prepaid on $$31-3-2014		$$1,35,000$$
$$12,250$$
$$15,000$$
$$17,000$$
$$16,750$$
Net expenses debited to profit and loss account for the year ended $$31.3.2014$$ should be
  • $$Rs. 1,96,000$$
  • $$Rs. 1,37,500$$
  • $$Rs. 1,32,000$$
  • $$Rs. 1,38,000$$
Financial statements only consider _________________.
  • Assets expressed in monetary terms
  • Liabilities expressed in monetary terms.
  • Assets expressed in non-monetary terms.
  • Assets and liabilities expressed in monetary terms
The cost of goods sold for the month of June, $$2015$$ is
  • $$Rs. 15,20,000$$
  • $$Rs. 14,02,500$$
  • $$Rs. 12,75,000$$
  • $$Rs. 13,60,000$$
Opening stock - $$Rs. 7,00,000, Purchase - Rs. 12,16,000, Wages - RS. 1,50,000$$, Goods distributed as free sample - $$Rs. 12,000, Sales - Rs. 20,00,000$$, Gross profit earned - $$25$$% of cost. Find out value of closing stock.
  • $$Rs. 5,54,000$$
  • $$Rs. 4,54,000$$
  • $$Rs. 4,00,000$$
  • None
Stock purchased in June, $$2015$$ is
  • $$Rs. 16,05,000$$
  • $$Rs. 13,86,400$$
  • $$Rs. 14,40,000$$
  • $$Rs. 13,82,500$$
From the following details find out the closing capital that will be appear in balance sheet on $$31-12-2015$$.
ParticularsRs.
Capital on $$1-1-2015$$
Drawings
Repair
Net profit before manager commission
Debtors		$$14,00,000$$
$$5,000$$
$$2,000$$
$$6,62,900$$
$$1,50,000$$
Provision for bad debts $$@ 6$$%
The manager is entitled commission of $$5$$% of net profit after charging his commission.
  • $$Rs. 20,26,333$$
  • $$Rs. 20,15,857$$
  • $$Rs. 20,14,305$$
  • $$Rs. 20,24,755$$
Which one of the following is correct ____________________.
  • The term 'Purchases' include the purchases of fixed assets for cash as well as on credit.
  • The term 'Sales' include the sales of fixed assets for cash as well as on credit.
  • The term 'Opening stock' means the goods lying unsold at the end of previous accounting period
  • The term 'Closing Stock' means the goods lying unsold at the beginning of current accounting period.
Raw-material consumed is equal to __________________.
  • Opening Stock of Raw-Materials - Closing stock of Raw-materials - Direct Expenses + Purchases
  • Direct Expenses - Closing Stock + Purchases + Opening Stock
  • Purchases + Closing Stock + Direct expenses - Opening Stock
  • None of these
Which of the following does not appear in the Manufacturing account ____________________.
  • Depreciation on Plants machinery
  • Depreciation on Factory Land & Building
  • Salary of works manager
  • Closing Capital work-in-progress
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