NCERTCOURSE.COM- Find here the NCERT/CBSE chapter-wise Multiple Choice Questions from Class 12 Accountancy book Chapter 8 Financial Statements of a Company with Answers Pdf free download. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Multiple Choice Questions of Financial Statements of a Company. Each question has four options followed by the right answer. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE.

MCQ Questions for Class 12 Accountancy with Answers

Q1. The debentures to be redeemed within 12 months from the date of balance sheet is shown under

(i) short term borrowings
(ii) long term borrowings
(iii) other current liabilities
(iv) long term liabilities

(iii) other current liabilities

Q2. Interest on Loans given by a financial company is shown in the statement of profit and loss as :

(i) Revenue from Operations
(ii) Other Income
(iii) Sundry Expenses
(iv) None of these

(i) Revenue from Operations.

Q3. Equity ₹ 90,000 Liabilities ₹ 60,000 Profit of the year ₹ 20,000. Then total assets will be :

(i) ₹ 1.70,000
(ii) ₹ 1,50,000
(iii) ₹1,10,000
(iv) ₹ 80,000

(i) ₹ 1.70,000

Q4. Preliminary expense are required to be written off within _ from the date of incurring.

(i) one year
(ii) five years
(iii) same year
(iv) three years

(iii) same year

Q5. Securities Premium Reserve is shown on the liabilities side in the Balance sheet under the head :

(i) Reserves and Surplus
(ii) Current Liabilities
(iii) Share Capital
(iv) None of these

(i) Reserves and Surplus.

Q6. Which of the following is not required to be prepared under the Companies Act:

(i) Statement of Profit & Loss
(ii) Balance Sheet
(iii) Anditor’s Report
(iv) Fund Flow Statement

(iii) Anditor’s Report

Q7. Capital Reserve will be shown under

(i) current liabilities
(ii) share capital
(iii) reserves and surplus
(iv) deferred tax liabilities

(iii) reserves and surplus

Q8. Interest on Loans given by a financial company is shown in the statement of profit and loss as :

(i) Revenue from Operations
(ii) Other Income
(iii) Sundry Expenses
(iv) None of these

(i) Revenue from Operations.

Q9. An Annual Report is issued by a company to its:

(i) Directors
(ii) Authors
(iii) Shareholders
(iv) Management

Q10. Dividend is paid on

(i) authorised capital
(ii) issued capital
(iii) called up capital
(iv) paid up capital

(iv) paid up capital

Q11. Gain on sale of fixed assets by a financial company is shown in the statement of profit and loss as :

(i) Revenue from Operations
(ii) Other Income
(iii) Both (i) and (ii)
(iv) None of these

(ii) Other Income.

Q12. The assets of a business can be classified as :

(i) Fixed and Non-fixed Assets
(ii) Tangible and Intangible Assets
(iii) Non-Current and Current Asset
(iv) None of these

(iii) Non-Current and Current Asset

Q13. Goodwill appears in a company’s balance sheet under

(i) Unamortised assets
(ii) Non-current investments
(iii) Intangible assets
(iv) Tangible assets

Q14. Which of the following is not the limitation of financial statements?

(i) Ignore qualitative aspects.
(ii) Personal bias.
(iii) Ignores price level change.
(iv) Provide information about the profitability of the business.

(iv) Provide information about the profitability of the business.

Q15. Balance Sheet is a :

(i) Account
(ii) Statement
(iii) Both (i) and (ii)
(iv) All the above

(ii) Statement

Q16. Claims against the company not acknowledged as debts is shown under

(i) current liabilities
(ii) non-current liabilities
(iii) commitments
(iv) contintent liabilities

(iv) contintent liabilities

Q17. From the given items which is a part of Current Liabilities:

(i) Inventories
(ii)Trade Payables
(iii) Cash and Cash Equivalents
(iv)Trade Receivables

Q18. Financial statements disclose :

(i) Monetary information
(ii) Qualitative information
(iii) Non-monetary information
(iv) All the above

(i) Monetary information

Q19. Carriage Inwards is shown in the statement of profit and loss under :

(i) Cost of materials consumed
(ii) Other expenses
(iii) Employees benefit expenses
(iv) None of these

(ii) Other expenses.

Q20. Statement of Profit & Loss is also called………:

(i) Operating Profit
(ii) Balance Sheet
(iii) Income Statement
(iv) Trading Account

(iii) Income Statement

Q21. Purchase of goods for reselling is shown in the Statement of Profit and Loss under :

(i) Changes in Inventories
(ii) Cost of Materials Consumed
(iii) Purchase of Stock-in-Trade
(iv) None of these

(iii) Purchase of Stock-in-trade.

Q22. Patents and copyrights fall under the category of:

(i) Current Assets
(ii) Liquid Assets
(iii) Intangible Assets
(iv) None of these

(iii) Intangible Assets

Q23. The statement which shows the assets and liabilities of a company is known as

(i) Balance sheet
(ii) Profit & Loss Account
(iii) Trial Balance
(iv) None of the options

(i) Balance sheet

I Think the given NCERT MCQ Questions for class 12 Accountancy book Chapter 8 Financial Statements of a Company with Answers Pdf free download will assist you. If you’ve got any queries regarding CBSE Class 12 Accountancy Financial Statements of a Company MCQs Multiple Choice Questions with Answers, drop a comment below and that we will come back to you soon.

MCQ Class 12 Accountancy with answers Part A & Part B

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