CBSE Questions for Class 12 Commerce Accountancy Financial Statements Of A Company Quiz 1 - MCQExams.com

Financial statements does not provide _____information.
  • monetary
  • qualitative
  • both
  • none
 Financial statements contain only_____information.
  • monetary
  • non-monetary
  • qualitative
  • all of the above
The  financial statements generally include _____statement.
  • three
  • five
  • two
  • four
State with reasons, whether the following statement is True or False.
In the balance sheet of X Limited, preliminary expenses amounting to $$Rs. 5$$ lakhs and securities premium account of $$Rs. 35$$ lakhs are appearing. The accountant can use the balance in securities premium account to write off preliminary expenses.
  • True
  • False
Balance sheet does not disclose information relating to ___________.
  • asset
  • loss of markets
  • liabilties
  • investment
Statements included in financial statements are________.
  • Profit and loss account
  • Balance sheet
  • Cash flow
  • All of the above
Unclaimed dividend is shown on the liability side of the balance sheet of a company as ___________.
  • Share Capital
  • Current Liabilities
  • Reserves & Surplus
  • Non-Current Liability
Pooling of interest method is applicable for amalgamation in the nature of _____.
  • Merger
  • Consolidation
  • Reconstruction
  • Realization
Financial statement in relation to a company includes __________.
  • Balance Sheet
  • Statement of Profit & Loss
  • Cash Flow Statement
  • All of the Above
Which of the following reserve does not appear in the balance sheet of a company?
  • Secret reserve
  • General reserve
  • Capital reserve
  • Specific reserve
The difference between gross dividend receivable and dividend received is debited to _________.
  • interim dividend
  • tax deducted at source
  • net dividend
  • difference adjustment
Advance payment of tax is a _______.
  • Prepaid Expense
  • General Reserve
  • Interim Dividend
  • Provision for Taxation
Which of the following does not represent application of fund of a company?
  • Fixed Asset.
  • Goodwill.
  • Debentures.
  • Repayment of loan.
Which of the following is not shown on the liability side of a balance sheet of a company?
  • Authorised capital
  • Issued capital
  • Paid up capital
  • Reserve capital
Which of the following is not a long-term borrowing of a company?
  • Debentures.
  • Term loans.
  • Loans repayable on demand from banks.
  • Long-term finance lease obligations.
The amount set aside to meet the loss of bad debt is __________.
  • Liability
  • Reserve
  • Provision
  • Contingent Liability
According to schedule VI Companies Act which of the following items is not shown on asset side of balance sheet?
  • Investment
  • Current loan & advances
  • Provision
  • Lease holds
Sale of land is a __________.
  • Revenue receipt
  • Capital receipt
  • Capital expenditure
  • Revenue expenditure
Floating assets are valued at
  • Cost
  • Market price
  • Cost or market price whichever is lower
  • Cost less depreciation
Which of the following is not true and opinion on financial statements?
  • The auditor should express an opinion on financial statements
  • His opinion is no guarantee to future viability of business
  • He is responsible for detection and prevention of frauds and errors in financial statements
  • He should examine whether recognised accounting principle have been consistenly
Dividend capitalization method was developed by _________________.
  • Ezra Solomon
  • Myron J. Gordon
  • James E. Walter
  • Merton H. Miller and Franco Modigliani
Owners equity or net worth is __________.
  • Liability
  • Assets
  • Revenue
  • Capital
Valuation balance sheet is prepared by a life insurance company to find out _______________.
  • Profit of loss
  • Financial position
  • Surplus or deficiency
  • Net liability
Preliminary expenses are recorded in
  • Equity and liabilities - Liability side of B/S
  • Current liabilities - Liability side of B/S
  • Fixed assets - Asset side of B/S
  • Asset side of B/S
Section $$3$$ of the companies Act $$2013$$ allows the formation of a _________.
  • one person company
  • private company
  • public company
  • none of the above
Statement - I : Capital structure refers to composition of long-term funds.
Statement - II : These include equity share capital, preference share capital, debentures, all debts and all reserves.
  • Both Statements I and II are correct
  • Statement I is correct but Statement II is incorrect
  • Statement I is incorrect but Statement II is correct
  • Both statements are incorrect
Which among the following is not a category of Non-Performing Assets?
  • Substandard Assets
  • Doubtful Debts
  • Loss Assets
  • Devaluated Assets
Minimum Alternate Tax (MAT) is imposed on
  • All companies
  • Public Limited Companies only
  • Private Limited Companies only
  • Partnership Firms and Companies
  • Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
  • Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion
  • Assertion is correct but Reason is incorrect
  • Both Assertion and Reason are incorrect
Which of the followings are accumulated profits?
  • General Reserve
  • Revenue Reserve
  • Profit and Loss (cr)
  • All of the above
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