CBSE Questions for Class 11 Commerce Accountancy Financial Statements 1 Quiz 2 - MCQExams.com

Call option is?
  • A contract to buy a certain number of shares at a stated price within a specified period of time.
  • A contract to sell a certain number of shares at a stated price within a specified period of time.
  • The option of the issuing company to demand the shareholders to pay for the partly paid shares.
  • The option available to the convertible debenture holders to demand equity shares in conversion of debentures.
How Should the following assets be shown in the permanence order in the balance sheet of a company?
Patent
Cash at bank
Stock in trade
Land and building
Cash in hand
  • 1, 4, 3, 2, 5
  • 4, 1, 3, 2, 5
  • 4, 3, 5, 2, 1
  • 5, 2, 1, 3, 4
A company pays dividend out of _____________________.
  • Profits of the company for year for which dividends are to be paid.
  • Undistributed profit of the previous financial years.
  • Money provided by the central and state governments for the payment of dividends in pursuance of their guarantors.
  • All of these.
Calculate the Gross Annual Value from the following details:
Municipal Value - $$Rs. 45,000$$
Fair Rental Value - $$Rs. 50,000$$
Standard Rent - $$Rs. 48,000$$
Actual Rent - $$Rs. 42,000$$
  • $$Rs. 50,000$$
  • $$Rs. 48,000$$
  • $$Rs. 45,000$$
  • $$Rs. 42,000$$
The following figures are taken from a balance sheet.
Equity share capital - 1,10,000
$$6\%$$ preference share capital - 30,000
General reserve - 50,000
Reserve for contingencies - 20,000
6% mortgage debentures- 50,000
Sundry creditors- 20,000
Preliminary expenses- 5,000
Prepaid expenses- 4,000
In this case, the debt equity ratio is?
  • 1:2
  • 2:1
  • 24:1
  • None of these
A business entity has assets of $$Rs.26,000$$ and liabilities of $$Rs.6,000$$. Owner's equity in this case is __________.
  • $$Rs.32,000$$
  • $$Rs.26,000$$
  • $$Rs.20,000$$
  • $$Rs.6,000$$
Working capital cycle involves the following.
i) Acquisition of Raw material
ii) Finished goods
iii) Receivables
iv) Cash
v) Work in progress.
Which of the sequence is correct?
  • (iv), (iii), (i), (v), (ii)
  • (i), (ii), (iii), (iv), (v)
  • (i), (v), (ii), (iii), (iv)
  • (iv), (i), (ii), (iii), (v)
The dividend per share in a company is Rs. 2, earning per share is Rs. 5, and the market value is Rs.What will be its yield?
  • 20 per cent
  • 12.5 per cent
  • 8 per cent
  • 25 per cent
When one of the following reflects the over all efficient with which capital is used?
  • Return on shareholders funds
  • Investment turnover ratio
  • Earning per share
  • Operating ratio
Summarizing take place in the form of ________.
  • Trial balance
  • Trading account and Balance sheet
  • Profit and loss account
  • All of the above
Item which can be grouped and shown under the heading of current assets __________.
  • Prepaid Expense
  • Debtors
  • Outstanding Expense
  • A and B
In what order, the following assets are shown in the balance sheet of a company?
i) Trade receivables
ii) Cash
iii) Furniture and fittings
iv) Investment in shares and debentures 
  • (ii), (i), (iv), (iii)
  • (i), (ii), (iii), (iv)
  • (iii), (iv), (i), (ii)
  • (iv), (iii), (ii), (i)
Gross book value of a self-constructed fixed asset does not include _________________.
  • Cost of construction.
  • Expenditure incurred on experimental production.
  • Fees of engineers.
  • Internal Profit.
Apprentice premium is credited to __________.
  • Trading account
  • Profit and Loss account
  • Drawing account
  • None of the above
When a fixed asset is acquired on hire purchase terms, such an asset is ___________________.
  • Not shown in the financial statement because ownership does vest in the enterprise.
  • Shown in the books at the amount paid.
  • Shown in the books at cash value.
  • Shown in the books at hire purchase price.
In the Financial Statement, the fixed assets appear at ________________.
  • Historical cost.
  • Value appraised by competent values.
  • Current value.
  • Either of the above.
The credit balance in the bank account is _________.
  • An asset
  • A liability
  • Capital
  • A revenue
  • An expense
Assets very easily convertible into cash are ___________.
  • Current Asset
  • Fixed assets
  • Liquid assets
  • Floating assets
In a financial statement, separate items of fixed assets may be shown at ___________________.
  • Same basis of valuation.
  • Different basis of valuation.
  • Same basis for each category of fixed assets.
  • None of the above.
Which amount will be entered in the Receipts and Payments A/c for the year ended Dec. 31, 2015?
  • 1,800
  • 2,000
  • 2,250
  • 2,200
Operating profit is __________ of operating revenue over operating expense.
  • excess
  • deficit
  • balance
  • none
_____________ = net profit + non operating expenses - non operating incomes.
  • Operating Profit
  • Gross profit
  • Net profit
  • Capital profit
The stakeholders are ______ of financial statements.
  • Valuers
  • Users
  • Both
  • None of the Above
Inventory is classified as a ________.
  • fixed asset
  • current asset
  • fictitious asset
  • none of the above
_______ is concerned about the rights of all stakeholders are protected.
  • Owner
  • Government
  • Creditor
  • Investor
Gagan purchases a bond today and sells 6 months before its maturity. The yield realized is known as ________________.
  • Holding period return
  • Current yield if coupon interest is received.
  • Yield to maturity
  • All of the above
  • Both (A) & (B)
Which of the following statement is not correct?
  • Both NPV and IRR will lead to same accept and reject decision
  • In case of mutually exclusive project, NPV & IRR method may give conflicting ranking.
  • IRR is relative measure of profitability while NPV is an absolute measure of profitability.
  • IRR method confirms to goal of financial management i.e. maximization of shareholders wealth
_________ is interested in adequacy of profits only as an assurance of return of principal and interest back in time.
  • Government
  • Bank
  • Owner
  • Creditor
________ is interested in information about past profits and financial position.
  • Owner
  • Government
  • Bank
  • None of the above
The term current assets does not include _____________.
  • Cash.
  • Stock-in-hand.
  • Advance payments.
  • Furniture.
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers