CBSE Questions for Class 11 Commerce Accountancy Financial Statements 1 Quiz 14 - MCQExams.com

Third step in calculating value of stock with non-constant growth rate is to find ___________.
  • PV of expected dividends
  • FV of expected dividends
  • PV of intrinsic rate
  • FV of intrinsic rate
Carriage inwards can be included in
  • Direct expenses
  • Indirect expenses
  • Current liability
  • Misc Expenses
Trial balance is prepared on____ basis.
  • Monthly
  • Annually
  • Half yearly
  • Any of the above
Financial corporations which serve individual savers and commercial mortgage borrowers are classified as ___________________.
  • savings associations
  • loans associations
  • preferred and common associations
  • savings and loans associations
Overvaluation of opening stock in financial accounting results _____________.
  • decreases costing profit
  • decreases financial accounts profit
  • increases costing profit
  • increases financial accounts profit
Income includes ______________.
  • Income earned
  • Income received
  • Income receivable
  • All of the above
The movement of securities from one stock exchange to another with the object of reaping a profit from the disparity in share prices is called __________.
  • Averaging
  • Arbitraging
  • Back wardation
  • Forward Trading
Which of the following are not current liabilities?
  • Bank overdraft.
  • Redeemable debentures.
  • Provision for doubtful debts.
  • Accounts payable.
Assets appearing in the book but having no value are known as ___________.
  • Wasting Assets
  • Intangible Assets
  • Current Assets
  • Fictitious Assets
A business concern provides the following details.
Cost of goods sold - Rs. 1,50,000
Sales - Rs. 2,00,000
Opening stock - Rs. 60,000
Closing stock - Rs. 40,000
Debtors - Rs. 45,000
Creditors - Rs. 50,000
The concerns, purchases would amount to (in Rs.) ____________.
  • 1, 30,000
  • 2,20,000
  • 2,60,000
  • 2,90,000
If a company has contingent liabilities, they appear in the __________.
  • balance sheet
  • director's report
  • foot note down the balance sheet
  • chairman's report
Which one of the following securities cannot be issued by a public limited company in India?
  • Participating preference shares.
  • Redeemable preference shares.
  • Deferred shares.
  • Debentures.
What is the effect of drawing on capital account?
  • Increase capital balance
  • Decrease capital balance
  • Neutralize capital balance
  • None of the above
From the given information, find the correct amount of purchases.
Cost of goods sold$$Rs. 1,20,000$$
Carriage inwards$$Rs. 1,890$$
Opening stock$$Rs. 43,640$$
Closing stock$$Rs. 38,500$$
Purchase returns$$Rs. 2,150$$
Sales$$Rs. 2,82,650$$
  • $$Rs. 1,15,120$$
  • $$Rs. 62,650$$
  • $$Rs. 1,10,420$$
  • None of the above
Cost of goods sold- Rs. 13,300, Gross Profit - Rs. 3,200, Net profit - Rs. 700, what is the amount of sales?
  • Rs. 14,000
  • Rs. 10,100
  • Rs. 16,500
  • Rs. 17,200
Balance sheet is prepared primarily with the following group in view of ____________.
  • owners
  • creditors
  • government
  • management
'Proposed dividends' is shown in the balance sheet of a company under the head of _________.
  • Provisions
  • Reserves and Surplus
  • Current liabilities
  • Other liabilities
If trail a balance does not tally inspite of thorough scrutiny and the difference is substantial, then which one of the following courses would be accountant adopt?
  • Defer preparation of financial statements.
  • Open suspense account.
  • Write off the difference to profit and loss account.
  • Ignore the difference and prepare financial statements.
The mutual obligations to be eliminated from the consolidated balance sheet are ___________.
$$1.$$ Cash in transit or goods in transit
$$2.$$ Contingent liabilities
$$3.$$ Loans payable and receivable
$$4.$$ Owing for services rendered
  • $$1, 3$$ and $$4$$
  • $$2$$ and $$4$$
  • $$1$$ and $$3$$
  • All the four
Given the following data extracted from the book of Abdul traders.
Opening stock - Rs. 30,000
Closing stock - Rs.40,000
Purchases- Rs.1,25,000
Carriage inwards-Rs.2,000
Carriage outwards- Rs.3,000
Return outwards- Rs.5,000
Sales - Rs.1,50,000
The cost of goods sold will be ____________.
  • $$Rs.1,30,000$$
  • $$Rs.1,12,000$$
  • $$Rs.1,20,000$$
  • $$Rs.1,15,000$$
Which of the following amounts shall be credited to Investor Education and Protection Fund, if they remain unpaid/unclaimed for seven years from the date they become due?
  • Matured debentures of a company
  • Tax arrears
  • Proceeds of sale property
  • Provision for doubtful debts
Arrange the following liabilities in the order of company balance sheet.
i) Bank Overdraft
ii) Bank Loan
iii) Share Capital
iv) Provision for Taxation
  • i, ii, iii, iv
  • iv, iii, ii, i
  • iii, ii, i, iv
  • iii, ii, iv, i
Which one of the following statements is correct?
  • Capital of a firm is reduced by borrowing.
  • When there is no change in proprietor's capital it is an indication of loss in business.
  • Nominal accounts refer to false transaction.
  • Real accounts relate to assets of a business.
A limited company has to redeem redeemable preference shares of the value of Rs. $$1,00,000$$ for which the company has issues $$3000$$ equity shares of Rs. $$10$$ each at a premium of $$10\%$$. The amount to be transferred to capital redemption reserve account will be.
  • Rs. $$1,00,000$$
  • Rs. $$97,000$$
  • Rs. $$70,000$$
  • Rs. $$67,000$$
A particular firm provided the following data for an accounting year:
Current ratio = $$2.5:1$$
Liquid ratio = $$1.5:1$$
Net working capital = $$Rs. 6,00,000$$
Current assets and current liabilities of the firm respectively will be _____________.
  • $$Rs.9,00,000$$ and $$Rs.3,00,000$$
  • $$Rs.10,00,000$$ and $$Rs.4,00,000$$
  • $$Rs.8,50,000$$ and $$Rs.2,50,000$$
  • $$Rs.7,50,000$$ and $$Rs.1,50,000$$
A business has assets of $$Rs.45,700$$ and owner's equity $$Rs.13,200$$. What is the amount of liabilities?
  • $$Rs.32,500$$
  • $$Rs.57,522$$
  • $$Rs.44,312$$
  • None of these.
Owner's equity stands of __________.
  • Fixed assets minus fixed liabilities
  • Fixed assets minus current liabilities
  • Current assets minus fixed liabilities
  • Total assets minus total liabilities
Closing stock appearing in the Trial Balance will be taken to __________.
  • Trading account only
  • Balance sheet only
  • Trading account and balance sheet
  • None of the above
Cost of goods sold = Rs. 2,40,000; Gross loss $$-\dfrac{1}{4}$$ of sales. What is the amount of sales ?
  • Rs. 1,00,000
  • Rs. 1,92,000
  • Rs. 1,44,000
  • Rs. 1,50,000
In a balance sheet, the assets and liabilities are arranged in the order of ___________.
  • Randomly
  • Permanence
  • Order of liquidity
  • Both B and C
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