CBSE Questions for Class 12 Commerce Accountancy Financial Statements Of A Company Quiz 10 - MCQExams.com

In the company's balance sheet, unclaimed divided should be shown under which of the following heads ___________.
  • Reserves and Surplus
  • Current liabilities
  • Unsecured loans
  • Miscellaneous expenditure
The ACC (Associated Cement Company) is an example of ______ combination.
  • Horizontal
  • Vertical
  • Circular
  • Diagonal
Match List I with List II and select the correct answer using the codes given below the lists.
List I                                                       List II
A. Brand Equity                               Tangible
B. Plant & Machinery                       Current
C. Advances to suppliers                 Intangible
D. Deferred revenue expenditure   Fictitious
  • A-3, B- 1, C-4, D-2
  • A-3, B- 1, C-2, D-4
  • A-1, B- 3, C-2, D-4
  • A-1, B- 3, C-4, D-2
Financial statements generally include.
  • Comparative statement
  • Fund flow statement
  • Income statement and Balance sheet
  • All of the above
What is the best definition of a non-current asset ?
  • Review Later
  • The total of current assets less current liabilities
  • An asset purchased for resale
  • Expenditure made to fulfill a revenue obligation
  • An asset intended for use on a continuing basis in the company's activities
Point in joint production process, in which two or more products are separately identifiable is termed as ________________.
  • step down point
  • incremental point
  • split off point
  • inseparability point
Arrange the following according to their increasing order of 'liquidity', using the code given below:
Saving deposits with the banks
Currency and coins with the public
Demand deposits with the banks
Term deposits with the banks.
  • $$1, 2, 3, 4$$
  • $$2, 3, 4, 1$$
  • $$3, 4, 1, 2$$
  • $$4, 1, 3, 2$$
Unclaimed dividend is shown in the ________.
  • P/L Account
  • P/L Appropriation Account
  • Balance Sheet
  • None of the Above
Calls in advance is shown in the balance sheet as _______.
  • current liabilities
  • added to called-up capital
  • current assets
  • deduction from called-up capital
Fictitious assets are shown on the asset side of the balance sheet of a company under the heading ________.
  • Fixed Asset
  • Current Asset
  • Miscellaneous Expenditure
  • None of these
In the case of joint stock companies, the assets and liabilities in B/s are arranged in the order of _________.
  • Serial number
  • Performance
  • Availability
  • None of the above
When the proposed dividend exceeds 20% of paid up capital, percentage of profit transferred to general reserve is _______.
  • 2.5%
  • 5%
  • 7.5%
  • 10%
Which of the following represents source of fund in the balance sheet of a company?
  • Secured loan.
  • Share capital.
  • Reserves & surplus.
  • All of the above.
Which of the following reserves cannot be distributed as dividend to share holders?
  • Securities premium
  • Profit on forfeiture of shares
  • Profit on sale of fixed assets
  • All of the above
Dividend may be declared out of ________.
  • Current Profit
  • Past Reserves
  • Money Provided By Government
  • All of the Above
Risk with respect to Capital budgeting can be incorporated by __________. 
  • adjusting the cash flows
  • adjusting the discount rate
  • adjusting the life
  • All of the above
The term "Financial Statement" covers _____________.
  • Profit and loss statement
  • Balance sheet and Profit and loss appropriation account
  • Trading, Profit and loss account and Balance sheet
  • None of the above
Match the items of the following two lists:
List-IList-II
(i) Statement of changes in Working Capital(a) Cash Flow Statement
(ii) Deferred Tax(b) Fixed Assets
(iii) Three activities(c) Funds Flow Statement
(iv) Impairment Loss(d) Balance Sheet
  • (i) - (a), (ii) - (b), (iii) - (c), (iv) - (d)
  • (i) - (c), (ii) - (d), (iii) - (b), (iv) - (a)
  • (i) - (c), (ii) - (d), (iii) - (a), (iv) - (b)
  • (i) - (d), (ii) - (c), (iii) - (a), (iv) - (b)
Which of the following are the objective of financial statements?
A. To provide information about economic resources and obligations of a business.
B. To provide information about the earning capacity of the business.
C. To not judge effectiveness of management.
D. Disclosing accounting policies.
  • A, B, C
  • A, B, D
  • A, C, D
  • B, C, D
Which of the following are the postulates used while preparing financial statements?
a. Going concern postulates.
b. Money measurement postulates.
c. Realization postulates.
d. Depreciation postulates.
  • A, B, C
  • B, C, D
  • A, C, D
  • A, B, C, D
The paid-up capital of Mukund Ltd. is Rs $$18,00,000$$. The company decided to propose a dividend of Rs $$2,16,000$$ out of current profit. How much of current profit is to be transferred to reserve?
  • At least $$2.5$$ $$\%$$
  • At least $$5$$ $$\%$$
  • At least $$10$$ $$\%$$
  • None of the above
Faina Electronics Pvt. Ltd. provides following information regarding an item
Normal usages:50 per week
Maximum usages : 75 per week
Minimum usages : 25 per week
Re-order quantity : 300
Re-order period : 4 to 6 weeks
What will be the Re-order-Level of the company ?
  • 300 units
  • 375 units
  • 450 units
  • 525 units
Which among these is true?
  • The Debenture Redemption Reserve Account is shown on the liabilities side of the Balance Sheet under the head 'Reserve and Surplus'
  • Under the sec. 80(5A) of companies (Amendment) Act, 1988, a company limited by shares shall issue irredeemable preference shares
  • Insurance fund is not an example of divisible profits
  • The Capital Redemption Reserve Account may not be applied by the company in issuing fully paid bonus shares to the members of the company
Match List-I with List-II and select the correct answer using the codes given below the lists:
List-I (Item of balance sheet of company)List-II (Heading of balance sheet)
a. Preliminary expensesCurrent liabilities
b. Other liabilities
Current asset
c. Loose ToolsMisc.Expenditure
d. Bill of ExchangeLoan & Advances
  • (a)-1, (b)-2, (c)-4, (d)-3
  • (a)-3, (b)-2, (c)-1, (d)-4
  • (a)-3, (b)-1, (c)-2, (d)-4
  • (a)-3, (b)-1, (c)-4, (d)-2
Redeemable preference shares of $$Rs. 2,00,000$$ are redeemed at par for which purpose fresh equity capital of $$Rs. 80,000$$ is issued at par. What amount should be transferred to Capital Redemption Reserve account?
  • Nil
  • $$Rs. 80,000$$
  • $$Rs. 1,20,000$$
  • $$Rs. 2,00,000$$
Balance of share forfeiture account (before re-issue of such shares) is shown in the balance sheet under the item ___________________.
  • Current liabilities and provisions.
  • Reserves and surpluses.
  • Share Capital.
  • Unsecured loans.
An ordinary share dividend is ______________.
  • part of the company profits used to reward the shareholders for their investment
  • interest on money lent to the company by its share holders
  • an expense of running the company
  • the director's remuneration
In a proprietorship business machinery that will be used in the business on continued basis that would usually be stated in the balance sheet at_________________.
  • its historical cost
  • its current replacement cost
  • its historical cost less depreciation
  • its second-hand value
Which of the following is not a typical analytical procedure_________.
  • Study of relationships of the financial information with relevant nonfinancial information
  • Comparison of the financial information with similar information regarding the industry in which the entity operates
  • Comparison of recorded amounts of major disbursements with appropriate invoices
  • Comparison of the financial information with budgeted amounts
Match list I with list II and select the correct answer using the codes given below the list:
     LIST I                                                         list II
X.Discount on debentures               1.Current Liability
Y.Forfeited Capital                          Non-Current Assets
Z.Income tax payable                     Current Assets
W.Debtors acceptance                    4.Non Current Liability
The correct option is:
  • X-$$2$$, Y-$$4$$, Z-$$1$$, W-$$3$$
  • X-$$4$$ Y-$$2$$ Z-$$3$$ W-$$1$$
  • X-$$2$$ Y-$$4$$ Z-$$3$$ W-$$1$$
  • X-$$4$$ Y-$$2$$ Z-$$1$$ W-$$3$$
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