This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Accountancy Chapter 7 Financial Statements Of Companies – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 10 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Below are the qualitative characteristics of a useful financial statement, except A) Relevant. B) Understandable. C) Reliable. D) Voluntary. Show Answer Correct Answer: D) Voluntary. 2. Balance Sheet of a company is required to be prepared in the format given in ..... A) Schedule III part II. B) Schedule III part I. C) Schedule III part III. D) Table A. Show Answer Correct Answer: B) Schedule III part I. 3. Henry, Jackson, and David are discussing their accounting homework. They need to identify the main components of an income statement. Can you help them out? A) Gross profit, operating profit, and net profit. B) Assets, liabilities, and equity. C) Cash flow, balance sheet, and statement of retained earnings. D) Revenue, expenses, and net income. Show Answer Correct Answer: D) Revenue, expenses, and net income. 4. As per Companies Act, the Balance Sheet of a company is required to be presented in ..... A) Horizontal Form. B) Vertical Form. C) Either Horizontal or Vertical Form. D) Neither of the above. Show Answer Correct Answer: B) Vertical Form. 5. Bills Receivables appear in a Company's Balance Sheet under the Sub-head ..... A) Current Investments. B) Cash Equivalents. C) Trade Receivables. D) Short term Loans and Advances. Show Answer Correct Answer: C) Trade Receivables. 6. Avery, Henry, and Aria are playing a game of 'Financial Whiz Kids.' They need to identify which financial statement shows a company's revenues and expenses over a period of time. Can you help them out? A) Income statement. B) Cash flow statement. C) Statement of retained earnings. D) Balance sheet. Show Answer Correct Answer: A) Income statement. 7. An entity shall disclose their revenue in the A) Statement of Financial Position. B) Statement of Profit or Loss and Other Comprehensive Income. C) Social and environmental report. D) Statement of changes in equity. Show Answer Correct Answer: B) Statement of Profit or Loss and Other Comprehensive Income. 8. Why would a company want to encourage the use of non-financial performanceindicators? A) TO encourage short-termism. B) To look at the fuller picture of the business. C) To enable results to be easily manipulated to the benefit of the manager. D) To prevent goal congruence. Show Answer Correct Answer: B) To look at the fuller picture of the business. 9. Which of the following item is shown under the head "current assets" while preparing companies balance sheet A) Investment in property. B) Trade receivables. C) Inventories. D) Vehicles. Show Answer Correct Answer: B) Trade receivables. 10. What a company owes to creditors: A) Assets. B) Liabilitites. C) Equity. D) None of the above. Show Answer Correct Answer: B) Liabilitites. 11. Why is the Balance Sheet considered a snapshot of a company's financial position? A) It is updated on a daily basis. B) It reflects future financial projections. C) It provides a summary of the company's financial position at a specific point in time. D) It only includes qualitative information. Show Answer Correct Answer: C) It provides a summary of the company's financial position at a specific point in time. 12. Badger acquired 30% of Eagle on 1 July 20X3 at a cost of $ 5.5 million. Badger has classifiedEagle as an associate undertaking. For the year ended 30 September 20X3, Eagle hasreported a net profit of $ 625, 000.What is the value of the associate investment in the group statement of financial positionof Badger as at 30 September 20X3? A) $ 5, 546, 875. B) $ 55, 00, 000. C) $ 6, 125, 000. D) $ 5, 968, 750. Show Answer Correct Answer: A) $ 5, 546, 875. 13. Goods purchased during the year A) Sales. B) Inventory. C) Purchases. D) None of the above. Show Answer Correct Answer: C) Purchases. 14. Expense on transportation of goods sold A) Freight inwards. B) Administrative cost. C) Freight outwards. D) None of the above. Show Answer Correct Answer: C) Freight outwards. 15. How is the net cash flow calculated in the cash flow statement? A) By subtracting expenses from revenue. B) By calculating the difference between assets and liabilities. C) By adding revenue and expenses. D) By comparing the opening and closing cash balances. Show Answer Correct Answer: D) By comparing the opening and closing cash balances. 16. Goodwill appears in a company's balance sheet under A) Unamortized assets. B) Non-current investments. C) Intangible assets. D) Tangible assets. Show Answer Correct Answer: C) Intangible assets. 17. The financial statement consists of the following statements, except A) Statement of Financial Position. B) Notes to the financial statement. C) Social and environmental report. D) Statement of changes in equity. Show Answer Correct Answer: C) Social and environmental report. 18. The presentation of financial data over a number of fiscal periods for analysis is referred to as a(n) A) Trend analysis. B) Common size analysis. C) Comparative analysis. D) All of the above are possible. Show Answer Correct Answer: A) Trend analysis. 19. A financial statement includes all of the following items:net income, depreciation, operating activities, and financing activities. What financial statement is this? A) Balance sheet. B) Income statement. C) Statement of cash flows. D) Statement of changes in stockholders' equity. Show Answer Correct Answer: C) Statement of cash flows. 20. Loss of value during this year on a van used for sales and distribution A) Administrative cost. B) Distribution cost. C) Cost of Goods sold. D) Finance cost. Show Answer Correct Answer: B) Distribution cost. 21. Which of the following transaction is NOT a revenue? A) Performed a services worth RM3, 000 on credit for Aliff and further services worth RM5, 500 cash. B) Purchased RM6, 000 worth of drying fuel and RM3, 000 worth of machinery lubricants. C) Received subsidy of RM7, 000 and interest of RM4, 000. D) Sold RM9, 000 worth of grain crops for cash and a small tractor costing RM12, 000 for RM20, 000. Show Answer Correct Answer: B) Purchased RM6, 000 worth of drying fuel and RM3, 000 worth of machinery lubricants. 22. Which of the following is not presented under 'Current Liabilities' in the Balance Sheet of a company? A) Short-term Borrowings. B) Short-term Provisions. C) Deferred Tax Liabilities. D) Trade Payables. Show Answer Correct Answer: C) Deferred Tax Liabilities. 23. Which of the following is not a sub head under the Current Assets? A) Cash and cash equivalents. B) Trademarks. C) Short term loans and advances. D) Inventories. Show Answer Correct Answer: B) Trademarks. 24. Identify the correct statement.Statement 1-Profit and Loss Account is also called as Statement of Profit and LossStatement 2-Statement of Profit and Loss shows the financial performance of the Company. A) Only 1 is correct. B) Only 2 is correct. C) Both 1 and 2 are correct. D) None of the above. Show Answer Correct Answer: C) Both 1 and 2 are correct. 25. While preparing balance sheet of a company, security premium is shown under A) Non current liability. B) Share capital. C) Long term borrowings. D) Reserves and surplus. Show Answer Correct Answer: D) Reserves and surplus. ← PreviousNext →Related QuizzesClass 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 1Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 2Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 3Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 4Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 5Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 6Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 7Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 8Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 9Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books