MCQ Class 12 Accountancy Chapter 3 Financial Statements of a Company

Check the below NCERT MCQ Class 12 Accountancy Chapter 3 Financial Statements of a Company with Answers available with PDF free download. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest syllabus and examination pattern issued by CBSE, NCERT and KVS. Our teachers have provided below Financial Statements of a Company Class 12 Accountancy MCQs Questions with answers which will help students to revise and get more marks in exams

Financial Statements of a Company Class 12 Accountancy MCQs Questions with Answers

Financial Statements of a Company Class 12 MCQ has been gathered for students to rehearse. Students can prepare this MCQ of Financial Statements of a Company Class 12. Each question has four choices with answers. Firstly, Solve all these Questions and check your answer with the right answer. If your answers do not match with the right answer, Don’t worry try again because You need to prepare daily to score higher marks in the Class 12 Accountancy Exam.

Refer below for MCQ Class 12 Accountancy Chapter 3 Financial Statements of a Company with solutions. Solve questions and compare with the answers provided below

Question: The assets held by a business which can be converted in the form of cash, without disturbing the normal operations of a business
a) Current assets
b) Tangible assets
c) Intangible assets
d) Fixed assets

Question: Reliability of financial analysis depends upon the
a) Reliability of financial data
b) Reliability of Customer
c) Reliability of financial data and Reliability of Customer
d) None of the options

Question: Calls in advance is to be shown under the heading of
a) Current Liabilities
b) Current Assets
c) Current Liabilities and Current Assets
d) None of the options

Question: Closing stock is recorded in the
a) Balance sheet
b) Profit and loss account
c) Trial balance
d) None of the options
Answer: Balance sheet

Question: Sinking Fund is shown under which subheading
a) Reserve and Surplus
b) Trade Payable
c) Non Current Liabilities
d) None of the options

Question: Miscellaneous Expenditure are
a) All of the options
b) Preliminary Expenses
c) Discount allowed on the issue of shares/deb
d) Development expenditure not adjusted

Question: Any difference in trial balance transferred to
a) Suspense A/c
b) Capital A/c
c) Current A/c
d) None of the options

Ques. Bills Receivables appear in a Company Balance Sheet under the Sub-head
(A) Current Investments
(B) Cash Equivalents
(C) Trade Receivables
(D) Short term Loans and Advances

Ques. Which of the following is not required to be prepared under the Companies Act
(A) Statement of Profit and Loss
(B) Balance Sheet
(C) Report of Director’s and Auditor’s
(D) Funds Flow Statement

Question: Those liabilities which may or may not arise as they are dependent on happening in future.
a) Contingent Liability
b) Current Liability
c) Provisions
d) Reserve & surplus

Ques. Mining Rights are
(a) Tangible Fixed Assets.
(b) Other Current Liabilities.
(c) Intangible Assets Under Development.
(d) Short-term Borrowings.

Question: Which are written off every year from the profits earned by the business.
a) Preliminary Expenses
b) Liabilities
c) Preliminary Expenses and Liabilities
d) None of the options

Question: The profit & loss statement is also known as the
a) All of the options
b) Income Statement
c) Statement of Earning
d) Statement of Operation

Question: Record all the debit balances of real and personal accounts in the
a) Assets side of the balance sheet
b) Liability side of the balance sheet
c) Assets side of the balance sheet and Liability side of the balance sheet
d) None of the options

Question: The term current asset doesn t cover
a) Car
b) Debtors
c) Stock
d) Prepaid expenses

Question: There are various external parties who are interested in financial statements
a) Creditors and Investors and Potential Investors
b) Creditors
c) Investors and Potential Investors
d) None of the options

Question: Current Liabilities are those liabilities which are liable to pay with in an operating cycle generally one year
a) Current Liabilities
b) Current Assets
c) Reserves and Surplus
d) None of the options

Question: Inventories include the following are
a) All of the options
b) Raw Material
c) Work in progress
d) Goods acquired for trading

Question: Which are the determinants of dividend policy
a) All of the options
b) Working Capital Requirement
c) Liquidity Position
d) Legal Requirement

Ques. Which of the following is not a Short-term Borrowing?
(a) Deposits
(b) Loans repayable on demand
(c) Bank Overdraft
(d) Trade Receivables

Ques. While preparing the Balance Sheet of a Company which item is shown under the head ‘Long term Borrowings’?
(A) 6% Debentures
(B) Security Premium Reserve
(C) Trade Payables
(D) None of the above

Question: Statement of Profit & Loss – Negative Balance is shown as a minus item under
a) Reserve and Surplus
b) Shareholders Fund
c) Short-term Loan
d) None of the options

Question: Which item is not part of Reserve and Surplus
a) Accumulated Depreciation
b) Capital Reserves
c) General Reserve
d) All of the options

Question: Financial Statement also called
a) Final Accounts
b) Profit & Loss A/c
c) Trading A/c
d) None of the options

Question: ___________ is conducted by the management
a) Internal Analysis
b) External Analysis
c) Internal Analysis and External Analysis
d) None of the options

Question: The accounting equation is
a) Assets= capital + Liabilities
b) Assets= capital – Liabilities
c) Assets= capital + Liabilities and Assets= capital- Liabilities
d) None of the options

Ques. In a company’s Balance Sheet Provision for Employees Benefits to be settled within 12 months is shown under
(a) Non-current Liabilities.
(b) Current Liabilities.
(c) Non-current Assets.
(d) Current Assets.

Question: Salaries outstanding Rs 50,000 will be record in the balance sheet under
a) Other Current Liabilities
b) Other Current Assets
c) Non-current Liabilities
d) All of the options

Ques. Short-term Borrowings appear in a Company’s Balance Sheet under the head
(A) Current Assets
(B) Current Liabilities
(C) Non-Current Liabilities
(D) Non-Current Assets

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