CBSE Questions for Class 12 Commerce Accountancy Analysis Of Financial Statements Quiz 3 - MCQExams.com

A has $$Rs. 3,500$$ due from B. On January $$20$$, B makes a partial payment of $$Rs. 2,100$$ to A. The journal entry made on January $$20$$ by A to record this transaction include_________.
  • A credit to the cash received account of $$Rs. 2,100$$
  • A credit to B's account of $$Rs. 2,100$$
  • A debit to the cash account of $$Rs. 1,400$$
  • A debit to B's account of $$Rs. 1,400$$
If an individual asset is increased, there will be a corresponding ____________________.
  • Increase of another asset or increase of capital
  • Decrease of another asset or increase of liability
  • Decrease of specific liability or decrease of capital
  • Increase of drawings and liabiltiy
Purchase of furniture for cash would ______________________.
  • Increase the fixed assets and reduce the current assets
  • Reduce the fixed assets and increase the current assets
  • Increase total assets
  • Both (a) and (b)
On sale of old furniture, owner's equity would ______________.
  • Increase
  • Decrease
  • Remain unchanged
  • May or may not change
Payment of a liability results in _________________.
  • Increase in total assets
  • Decrease in total assets
  • No change in total assets
  • None of these
Mr. Bhandari purchased a car for Rs. 50,000, making a down payment of Rs. 10,000 and signing a Rs. 40,000 bill payable due in 60 days. As a result of this transaction ___________________.
  • Total assets increased by Rs. 50,000
  • Total liabilities increased by Rs. 40,000
  • Total assets increased by Rs. 40,000
  • Total assets increased by Rs. 40,000 with corresponding increase in liabilities by Rs. 40,000
Income earned and collected results in _________________.
  • Increase of assets and increase in capital
  • Decrease in assets and increase in capital
  • Increase in assets and decrease in liability
  • Decrease in assets and increase in liability
Withdrawals by the proprietor would_______.
  • Reduce both assets and owner's equity
  • Reduce assets and increase liabilities
  • Reduce owner's equity and increase liabiltiy
  • No change
Stimulus: Support staff is undisciplined.
Response: It is a sign of the times.
How will you classify the above transaction as per concept of transactional analysis ______________.
  • Parent - Child
  • Parent - Adult
  • Parent - Parent
  • Child - Parent
In case of unexpired entry following entry should be made _________________.
  • It should be shown as an asset in the balance sheet
  • It is shown as a expense in profit and loss account
  • Both A & B
  • None the above
You require capital for purchase of fixed assets. What is this capital called?
  • Floating capital
  • Reserve capital
  • Circulating capital
  • Fixed capital
A cash purchase of supplies would ________________.
  • Decrease owner's equity
  • Increases liabilities
  • Have no effect on total assets
  • None of these
Outstanding business rent of Rs.$$15,000$$ was paid by the proprietor from his purse. The effect on the balance sheet is that ________________.
  • both liabilities and assets are increased
  • both liabilities and assets are decreased
  • liabilities are increased, while the assets are decreased
  • liabilities are decreased, while the assets are increased
Stimulus: You have presented a good report.
Response: Thank you.
How will you classify the above transaction as per concept of transactional analysis ________________.
  • Adult - Child
  • Adult - Adult
  • Parent - Parent
  • Child - Adult
Loss on sale of machinery will be ________.
  • debited on Machinery A/c
  • credited to Machinery A/c
  • credited to Profit and Loss A/c
  • None of them
Loss on sale of plant and machinery should be written off against _________.
  • Share premium
  • Depreciation fund account
  • Sales account
  • Profit & Loss account
Which of the following actions reflects 'adult ego' as per the concept of Transactional Analysis?
  • Pleasure
  • Pondering
  • Blessing
  • All of above
In periods of inflation, accounting depreciation is ______________ relative to replacement cost and real economic income is ______________.
  • overstated, overstated
  • overstated, understated
  • understated, overstated
  • understated, understated
Stimulus: I have finish the report tonight as it is due tomorrow.
Response: You always leave things to the last minutes
How will you classify the above transaction as per concept of transactional analysis ___________.
  • Adult - Adult
  • Parent - Adult
  • Adult - Parent
  • Child - Adult
A company discloses the following information in relation to its receivables in the notes to its financial statements.
Gross amount receivable - Rs. 4,800
Provision for doubtful debts - Rs. 360
Net Carrying amount of receivable - Rs. 4,400
Which one of the following is the maximum credit risk that it must also disclose in the notes to comply with IFRS 7?
  • Rs. 360
  • Rs. 4,400
  • Rs. 4,800
  • No disclosure is required
Which of the following statements is/ are NOT correct?
  • Provision for bad debts appears as a liability on the balance sheet
  • The provision for bad debts is owed to the proprietor
  • Bad debts could be less than the provision for bad debts
  • Bad debts could exceeds the provision for bad debts
Stimulus: Your are always late
Response: Sorry Sir!
How will you classify the above transaction as per concept of transactional analysis _______________.
  • Adult - Child
  • Child - Adult
  • Parent - Child
  • Child - Child
In accordance with IAS 1 Presentation of Financial Statements, which one of the following statements is correct?
  • Assets and liabilities must be presented broadly in the order of their liquidity.
  • Assets and liabilities can be offset if they result from the same transaction or event.
  • Intangible assets must be presented separately in the statement of financial position.
  • Even if less than 12 months, the length of an entity's operating cycle must be disclosed.
Stimulus: I wish you were better educated.
Response: I am not so lucky
How will you classify the above transaction as per concept of transactional analysis ____________.
  • Adult - Child
  • Child - Adult
  • Parent - Child
  • Child - Child
Which of the following are significance of Financial Analysis?
  • Assessing the earning capacity.
  • Assessing managerial efficiency.
  • Inter-firm Comparison.
  • All of the above
Withdrawals by proprietor would.
  • Reduce both Assets and Owner's Equity
  • Reduce Assets and increase Liabilities
  • Reduce Owner's Equity and increase Liabilities
  • Have no affect on the Balance Sheet
Parties interested in the analysis of financial statements are ___________.
  • Management
  • Shareholders
  • Bankers and Lenders
  • All of the above
Financial Analysis does not help the users of the financial statements to understand the complicated matters in simplified manner.
  • True
  • False
On the basis of financial analysis, earning capacity of the enterprise cannot be assessed or computed.
  • True
  • False
Financial data can be made more comprehensive by _______________.
  • Charts
  • Graphs
  • Diagrams
  • All of the above
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Practice Class 12 Commerce Accountancy Quiz Questions and Answers