This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Accountancy Chapter 7 Financial Statements Of Companies – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 7 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How to find Net Profit/(Net Loss)? A) Opening Capital + Drawings. B) Closing Capital-Opening Capital + Drawings. C) Closing Capital-Drawings. D) Opening-Drawings-Closing Capital. Show Answer Correct Answer: B) Closing Capital-Opening Capital + Drawings. 2. Which of the following are items of Expenses? A) Salaries, utilities, inventory, discount allowed. B) Salaries, utilities, insurance, discount allowed. C) Salaries, utilities, interest received, discount allowed. D) Salaries, utilities, loan, discount allowed. Show Answer Correct Answer: B) Salaries, utilities, insurance, discount allowed. 3. Which formula represents the ROTCE correctly? A) Net profit before tax + Interest expense x 100Average shareholders equity + Loans. B) Net profit after tax + Interest expense x 100Average shareholders equity + Loans. C) Net profit before tax + Interest expense x 100Average shareholders equity + all liabilities. D) Net profit after tax x 100Average shareholders equity + Loans. Show Answer Correct Answer: A) Net profit before tax + Interest expense x 100Average shareholders equity + Loans. 4. The base figure used for calculating percentages in a common size Balance Sheet is the: A) Working capital. B) Total liabilities. C) Owner's equity. D) Total assets. Show Answer Correct Answer: D) Total assets. 5. Which of the following characteristics of accounting information primarily allows users of financial statements to generate predictions about an organisation? A) Reliability. B) Timeliness. C) Neutrality. D) Relevance. Show Answer Correct Answer: D) Relevance. 6. How will the earnings per share (EPS) be calculated? A) Profit before tax / Dividends per share. B) Profit before tax / no of shares in issue. C) Profit after tax / no of shares in issue. D) Profit before tax / authorized shares. Show Answer Correct Answer: C) Profit after tax / no of shares in issue. 7. Loss of value during this year on fittings used in office A) Finance cost. B) Administrative cost. C) Cost of Goods sold. D) Distribution cost. Show Answer Correct Answer: B) Administrative cost. 8. All of the following are included in the Statement of Financial Position, except for? A) Profit. B) Vehicle. C) Vehicle expenses. D) Capital. Show Answer Correct Answer: C) Vehicle expenses. 9. The main source of revenue for a trading business A) Sales. B) Dividends. C) Fees received. D) Capital. Show Answer Correct Answer: A) Sales. 10. Annual report is issued by company to its A) Directors. B) Auditors. C) Shareholders. D) Management. Show Answer Correct Answer: C) Shareholders. 11. 9% Debentures redeemable within 12 months of the date of the balanve sheet will be shown under ..... A) Short Term Borrowings. B) Short Term Peovisions. C) Other current Liability. D) Trade Payables. Show Answer Correct Answer: C) Other current Liability. 12. Define "Don't put all your financial eggs into one basket" . A) To make fried rice. B) Put your money in different types of investment. C) High risk, high return. D) Put all your money into one type of investment. Show Answer Correct Answer: B) Put your money in different types of investment. 13. What is the net profit of a business? A) The total revenue earned by a business. B) The total expenses incurred by a business. C) The difference between revenue and expenses. D) The total assets of a business. Show Answer Correct Answer: C) The difference between revenue and expenses. 14. Tax recoverable should be treated in the SOFP under A) Non-current assets. B) Current assets. C) Non-current liabilities. D) Current liabilities. Show Answer Correct Answer: B) Current assets. 15. 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) Fund flow statement. Show Answer Correct Answer: D) Fund flow statement. 16. Cash at bank is an example of a A) Current asset. B) Non-current asset. C) Equity. D) None of the above. Show Answer Correct Answer: A) Current asset. 17. ..... are short-term assets and their values are constantly changing. A) Non-Current Assets. B) Current Assets. C) All the above. D) None of the above. Show Answer Correct Answer: B) Current Assets. 18. Cash from operating activities consist of ..... A) Operational Net Profit. B) Decrease in CA. C) Increase in CL. D) All. Show Answer Correct Answer: D) All. 19. The financial statement that reports the assets, liabilities, and shareholders equity at a specific date is the: A) Balance sheet. B) Income Statement. C) Trial Balance. D) General Ledger. Show Answer Correct Answer: A) Balance sheet. 20. What is the primary purpose of employee's interest in reviewing the financial statements of their current company? A) To help employees assess the ability of the enterprise to provide remuneration. B) To determine the business's credit rating. C) To involve employees in the financial decision-making process. D) To help employees decide whether to buy company securities. Show Answer Correct Answer: A) To help employees assess the ability of the enterprise to provide remuneration. 21. Qualitative characteristics of useful financial information consist all the following except: A) Relevance. B) Comparability. C) Accrual basis. D) Verifiability. Show Answer Correct Answer: C) Accrual basis. 22. Mia, Zoe, and Aiden are playing a game of 'Financial Whiz Kids'. They stumbled upon a question that they need your help with. Can you tell them which financial statement shows the changes in a company's cash and cash equivalents over a period of time? A) Statement of Retained Earnings. B) Balance Sheet. C) Income Statement. D) Statement of Cash Flows. Show Answer Correct Answer: D) Statement of Cash Flows. 23. What is the meaning of Gross profit? A) Profit from providing services to customers. B) Profit from providing money to customers. C) Profit from providing goods to customers. D) Profit from providing loans to customers. Show Answer Correct Answer: C) Profit from providing goods to customers. 24. The following extracts relate to Company X and Company Y for 20Xl Revenue 20, 000 26, 000Cost of sales (15, 400 (21, 050)Gross profit 4, 600 4, 900Expenses 2, 460 2, 770Operating profit 2, 140 2, 180What is the operating profit margin for companies for 20XI? A) 10.7%, 8.38%. B) 8.38%, 10.7%. C) 23%, 19%. D) 12%, 10%. Show Answer Correct Answer: A) 10.7%, 8.38%. 25. All of the following statements regarding the purpose of the Statement of Financial Position are correct except for? A) Shows assets, liabilities and owner's equity. B) It is prepared at a point in time. C) It can assist users, such as bank managers, with decisions. D) Shows revenue, expenses and profit. Show Answer Correct Answer: D) Shows revenue, expenses and profit. ← 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 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