This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Accountancy Chapter 7 Financial Statements Of Companies – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 2 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which account is classified as an income? A) Cash. B) Cell phone bill. C) Credit card. D) Babysitting payment. Show Answer Correct Answer: D) Babysitting payment. 2. How do you calculate the Net Income from an Income Statement? A) Net Income = Total Revenue + Total Expenses. B) Net Income = Total Revenue x Total Expenses. C) Net Income = Total Revenue / Total Expenses. D) Net Income = Total Revenue-Total Expenses. Show Answer Correct Answer: D) Net Income = Total Revenue-Total Expenses. 3. Which of the following is NOT an objective of financial reporting? A) Provide information that is useful in investment and credit decisions. B) Provide information about economic resources, claims to those resources and changes in them. C) Provide information that is useful in assessing future cash flows. D) Provide information on the liquidation value of a business. Show Answer Correct Answer: D) Provide information on the liquidation value of a business. 4. Who is responsible in the issuance of new accounting standards in Malaysia? A) Central Bank of Malaysia. B) Malaysian Accounting Standards Board (MASB). C) Companies Commission of Malaysia. D) Securities Commission. Show Answer Correct Answer: B) Malaysian Accounting Standards Board (MASB). 5. Grace, Ava, and Daniel are playing a game about financial statements. They need your help! Which financial statement shows a company's assets, liabilities, and shareholders' equity at a specific point in time? A) Balance sheet. B) Statement of retained earnings. C) Cash flow statement. D) Income statement. Show Answer Correct Answer: A) Balance sheet. 6. Why do investment analysts typically want to see a company's financial statements? A) To evaluate the business's competitive strategies. B) To assess the ability of the company to pay taxes. C) To determine the company's credit rating. D) To decide whether to recommend the company's securities to clients. Show Answer Correct Answer: D) To decide whether to recommend the company's securities to clients. 7. As per Schedule III, Part I of the Companies Act. 2013 Unpaid dividend will be presented under which of the following head/sub-head, in the Balance Sheet of a company? A) Reserves and Surplus. B) Current Liabilities. C) Contingent Liabilities. D) Shareholders Funds. Show Answer Correct Answer: B) Current Liabilities. 8. What are assets? A) What a company owns; anything of value owned by a business. B) Costs of operating a business. C) Detailed plans for the financial needs of individuals, families, and businesses. D) Differences between actual and budgeted performance. Show Answer Correct Answer: A) What a company owns; anything of value owned by a business. 9. Aiden, Kai, and Ethan are having a debate about the purpose of an income statement. Can you help them settle the argument? A) Aiden thinks it's to track the company's stock prices. B) Kai believes it's to calculate the company's market share. C) Ethan says it's to determine the company's customer satisfaction levels. D) Or is it to provide a summary of a company's revenues, expenses, and net income over a specific period of time?. Show Answer Correct Answer: D) Or is it to provide a summary of a company's revenues, expenses, and net income over a specific period of time?. 10. What is the purpose of financial statements? A) To give investors and lenders an understanding of a business's financial health. B) To provide a breakdown of a business's marketing expenses. C) To track the number of employees in a business. D) To calculate the taxes owed by a business. Show Answer Correct Answer: A) To give investors and lenders an understanding of a business's financial health. 11. The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the: A) Balance Sheet. B) Statement of Retained Earnings. C) Statement of Cash Flows. D) Income Statement. Show Answer Correct Answer: D) Income Statement. 12. Which is the category to see whether the company can meet their short term obligations. A) Solvency. B) Profitability. C) Liquidity. D) Return. Show Answer Correct Answer: C) Liquidity. 13. All of the following are assets, except for? A) Goodwill. B) Patents. C) Loans to other businesses. D) Loans from other businesses. Show Answer Correct Answer: D) Loans from other businesses. 14. All of the following are revenues, except for? A) Accounts receivable. B) Dividends received. C) Rent Revenue. D) Commission Revenue. Show Answer Correct Answer: A) Accounts receivable. 15. With which ratio can the risk of a company be calculated? A) Debt:Equity. B) Current assets:Current liablities. C) Total assets:total liabilities. D) Total liabilities:Equity. Show Answer Correct Answer: A) Debt:Equity. 16. ..... are amounts which are due for repayment within the next 12 months. A) Current Liabilities. B) Non-Current Liabilities. C) All the above. D) None of the above. Show Answer Correct Answer: A) Current Liabilities. 17. What is owner's equity? A) The value of the business after liabilities are subtracted from assets; the value of the owner's investment in the business. B) What a company owes. C) Documents that are used to record and analyze the financial performance of a business. D) All income a company receives overtime. Show Answer Correct Answer: A) The value of the business after liabilities are subtracted from assets; the value of the owner's investment in the business. 18. Under which of the following headings/sub-headings, Calls-in-Advance will be presented in the Balance Sheet of a company as per Schedule III Part I of the Companies Act, 2013? A) Current Liabilities. B) Share Capital. C) Share Application Money Pending Allotment. D) Reserves and Surplus. Show Answer Correct Answer: A) Current Liabilities. 19. Operating Income is also known as A) EBT. B) EAT. C) EBIT. D) Revenue. Show Answer Correct Answer: C) EBIT. 20. Calls in Arrears appear in a Company's Balance Sheet under ..... A) Reserve & Surplus. B) Shareholder's Funds. C) Contingent Liabilities. D) Short-term Borrowings. Show Answer Correct Answer: B) Shareholder's Funds. 21. Identify the correct statement.Statement 1-Balance sheet is also called as Statement of Affairs Statement 2-Statement of Affairs shows the financial position 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. 22. A possible main source of revenue for service business A) Fees received. B) Sales. C) Interest received. D) Capital. Show Answer Correct Answer: A) Fees received. 23. Dividend payable to redeemable preference shareholders will not be classified as part of finance cost in the SOPL. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 24. Purchase of goodwill will appear in ..... activity? A) Operating. B) Investing. C) Both. D) None. Show Answer Correct Answer: B) Investing. 25. In the SOCIE, the company should disclosed all the following components except: A) Share capital. B) Retained profits. C) General reserve. D) Other income. Show Answer Correct Answer: D) Other income. ← PreviousNext →Related QuizzesClass 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 1Class 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 10Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books