{"id":18743,"date":"2022-05-28T09:30:13","date_gmt":"2022-05-28T04:00:13","guid":{"rendered":"https:\/\/mcq-questions.com\/?p=18743"},"modified":"2022-05-18T16:10:25","modified_gmt":"2022-05-18T10:40:25","slug":"mcq-questions-for-class-12-accountancy-chapter-8","status":"publish","type":"post","link":"https:\/\/mcq-questions.com\/mcq-questions-for-class-12-accountancy-chapter-8\/","title":{"rendered":"MCQ Questions for Class 12 Accountancy Chapter 8 Financial Statements of a Company with Answers"},"content":{"rendered":"

Students who are searching for NCERT MCQ Questions for Chapter 8 Financial Statements of a Company with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 12 Accountancy with Answers<\/a>. You can also verify your answers from our provided Financial Statements of a Company Class 12 MCQs Questions with Answers. So, ace up your preparation with MCQ on Financial Statements of a Company Class 12 Objective Questions.<\/p>\n

Financial Statements of a Company Class 12 MCQs Questions with Answers<\/h2>\n

Multiple Choice Questions (MCQs):<\/span><\/p>\n

Question 1.
\nPreliminary expense are required to be written off within _______ from the date of incurring.
\n(a) one year
\n(b) five years
\n(c) same year
\n(d) three years<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) same year<\/p>\n<\/details>\n

\n

Question 2.
\nIn the notes to accounts, share capital in which company has not called the entire face value of shares is shown under the notes to accounts.
\n(a) Subscribed and fully paid up capital
\n(b) Subscribed but not fully paid up capital
\n(c) Reserve Capital
\n(d) None of these<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Subscribed but not fully paid up capital<\/p>\n<\/details>\n

\n

Question 3.
\nThe debentures to be redeemed within 12 months from the date of balance sheet is shown under
\n(a) short term borrowings
\n(b) long term borrowings
\n(c) other current liabilities
\n(d) long term liabilities<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) other current liabilities<\/p>\n<\/details>\n

\n

Question 4.
\nWhich of the following item will not appear under short term provisions
\n(a) Provision for tax
\n(b) Proposed Dividend
\n(c) Provision for retirement benefits
\n(d) Provision for doubtful debts<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Provision for retirement benefits<\/p>\n<\/details>\n

\n

Question 5.
\nCapital Reserve will be shown under
\n(a) current liabilities
\n(b) share capital
\n(c) reserves and surplus
\n(d) deferred tax liabilities<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) reserves and surplus<\/p>\n<\/details>\n

\n

Question 6.
\nDividend is paid on
\n(a) authorised capital
\n(b) issued capital
\n(c) called up capital
\n(d) paid up capital<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) paid up capital<\/p>\n<\/details>\n

\n

Question 7.
\nWhich of the following is not required to be prepared under companies act
\n(a) Statement of Profit and Loss
\n(b) Balanc Sheet
\n(c) Cash Flow Statement
\n(d) Funds Flow Statement<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Funds Flow Statement<\/p>\n<\/details>\n

\n

Question 8.
\nGoodwill appears in a company\u2019s balance sheet under
\n(a) Unamortised assets
\n(b) Non-current investments
\n(c) Intangible assets
\n(d) Tangible assets<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Intangible assets<\/p>\n<\/details>\n

\n

Question 9.
\nWhich of the following is not required to be prepared under companies act
\n(a) Statement of Profit and Loss
\n(b) Balance Sheet
\n(c) Cash Flow Statement
\n(d) Funds Flow Statement<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Funds Flow Statement<\/p>\n<\/details>\n

\n

Question 10.
\nClaims against the company not acknowledged as debts is shown under
\n(a) current liabilities
\n(b) non-current liabilities
\n(c) commitments
\n(d) contintent liabilities<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) contintent liabilities<\/p>\n<\/details>\n

\n

Fill in the Blanks with correct word:<\/span><\/p>\n

Question 11.
\nThe balance sheet of company is prepared under schedule _______ part __________.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: III,I<\/p>\n<\/details>\n

\n

Question 12.
\nThe financial statements are prepared under the provisions of Companies Act, ______.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: 2013<\/p>\n<\/details>\n

\n

Question 13.
\nSchedule VI has been replaced with schedule _______ in the new company law.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: III<\/p>\n<\/details>\n

\n

Question 14.
\nBalance sheet of a company can be prepared only in ______ form.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Vertical<\/p>\n<\/details>\n

\n

Question 15.
\nThe new Companies Act has replaced the concept of ______ with ________ to Accounts.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Schedules,notes<\/p>\n<\/details>\n

\n

Question 16.
\nCash and Cash Equivalents will be shown under ________.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Current assests<\/p>\n<\/details>\n

\n

Question 17.
\nDr. balance of Statement of Profit and Loss is shown under _______ as ________ item.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Reserves and surplus,Negative<\/p>\n<\/details>\n

\n

Question 18.
\nDiscount on issue of debentures to be written off after 12 months from the reporting date of balance sheet are shown under ________.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Non current assests<\/p>\n<\/details>\n

\n

Question 19.
\nShare capital consist of _________ share capital and ________ share capital.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Equity,preference<\/p>\n<\/details>\n

\n

Question 20.
\nLong term provisions are expected to be settled _________ 12 months after the reporting date of balance
\nsheet.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Beyond<\/p>\n<\/details>\n

\n

State whether the following statements are true or false:<\/span><\/p>\n

Question 21.
\nBank charges are shown under finance costs.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 22.
\nShare forfeiture account is shown under subscribed capital but fully paid up.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 23.
\nMoney received against share warrants is shown under the heading reserves and surplus.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 24.
\nStatement of profit and loss carrying positive value or negative value, is always shown under Reserves and Surplus.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 25.
\nTrade payables does not include sundry creditors.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 26.
\nInterest received by non-finance Company is shown under revenue from operations.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 27.
\nSale of scrap in case of manufacturing company is a part of revenue from operations.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 28.
\nCalls in advance is shown under other current liabilities.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 29.
\nDiscount allowed to receivables is shown under the heading finance costs.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 30.
\nCall in arrears are shown as other current assets as it is the amount receivable.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

One word Questions:<\/span><\/p>\n

Question 31.
\nState the importance of financial analysis for labour unions. (CBSE SP 2019-20)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Labor unions analyse the financial statements to assess whether an enterprise can increase their pay.<\/p>\n<\/details>\n

\n

Question 32.
\nIf operating is not given, what is the time for the operating cycle assumed?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: 12 months.<\/p>\n<\/details>\n

\n

Question 33.
\nIf the operating cycle is given for 12 months and the payment cycle for trade payables is 15 months, how will you classify the liability?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Non-current Liability.<\/p>\n<\/details>\n

\n

Question 34.
\nName any one line item that can be shown under the major heading \u2018Equity and Liabilities\u2019 in a company\u2019s Balance Sheet.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Shareholders\u2019Funds<\/p>\n<\/details>\n

\n

Question 35.
\nName any one item that can be disclosed under \u2018Short Term Provisions\u2019.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Provision for Doubtful debts.<\/p>\n<\/details>\n

\n

Question 36.
\nHow would you treat preliminary expenses?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Preliminary expenses are written off in the year in which they are incurred.<\/p>\n<\/details>\n

\n

Question 37.
\nGive one example of unamortised expenses.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Discount on issue of shares \/ debentures.<\/p>\n<\/details>\n

\n

Question 38.
\nState any one component of shareholders\u2019 funds.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Reserves & Surplus.<\/p>\n<\/details>\n

\n

Question 39.
\nHow would you treat share forfeiture account?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Added in the subscribed.<\/p>\n<\/details>\n

\n

Question 40.
\nMention one component of Reserves and Surplus.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Securities Premium Reserves.<\/p>\n<\/details>\n

\n

Question 41.
\nPratiksha Cartons Limited has given guarantee of ? 75,00,000 to a bank for raising loans from the bank by its subsidiary’ company. Where will this be shown in books of the company?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: This will be mentioned in Notes to Accounts.<\/p>\n<\/details>\n

\n

Use the above-provided NCERT MCQ Questions for Class 12 Accountancy Chapter 8 Financial Statements of a Company with Answers Pdf free download and get a good grip on the fundamentals. Need any support from our end during the preparation of CBSE Class 12 Accountancy Financial Statements of a Company MCQs Multiple Choice Questions with Answers then leave your comments below. We’ll revert back to you soon.<\/p>\n","protected":false},"excerpt":{"rendered":"

Students who are searching for NCERT MCQ Questions for Chapter 8 Financial Statements of a Company with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 12 Accountancy with Answers. You can also verify your answers from our provided Financial Statements …<\/p>\n

MCQ Questions for Class 12 Accountancy Chapter 8 Financial Statements of a Company with Answers<\/span> Read More »<\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":""},"categories":[35],"tags":[],"yoast_head":"\nMCQ Questions for Class 12 Accountancy Chapter 8 Financial Statements of a Company with Answers - MCQ Questions<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mcq-questions.com\/mcq-questions-for-class-12-accountancy-chapter-8\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MCQ Questions for Class 12 Accountancy Chapter 8 Financial Statements of a Company with Answers - MCQ Questions\" \/>\n<meta property=\"og:description\" content=\"Students who are searching for NCERT MCQ Questions for Chapter 8 Financial Statements of a Company with Answers Pdf free download are compiled here to get good practice on all fundamentals. 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