This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Accountancy Chapter 7 Financial Statements Of Companies – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 9 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A = L + OE is proven on the ..... A) Income Statement. B) Balance Sheet. C) Cash Flow Statement. D) Sales Journal. Show Answer Correct Answer: B) Balance Sheet. 2. Cost of sales = ..... + Purchases-Closing inventory A) Salary. B) Sales. C) Opening Inventory. D) Purchase Return. Show Answer Correct Answer: C) Opening Inventory. 3. Share capital of a company consist of 70, 000 shares of ₹ 10 each, ₹ 8 called up. All the shareholders have duly paid up the called amount. Share capital will be shown as A) Subscribed and fully paid. B) Subscribed but not fully paid. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: B) Subscribed but not fully paid. 4. What do we understand from financial statements? A) A group of reports regarding the organization's various financial aspects. B) A group of reports regarding the employee's data. C) A collection of reports pertaining to the organization's vision and mission. D) None of the above. Show Answer Correct Answer: A) A group of reports regarding the organization's various financial aspects. 5. You have assets totaling $ 10, 000 and all of your debts total $ 13, 000. What is your net worth A) $ 3. B) $ 23, 000. C) $ 3000. D) $ -3000. Show Answer Correct Answer: D) $ -3000. 6. Unclaimed dividend appears in a Company's balance Sheet under the Sub-head ..... A) Short-term Borrowings. B) Trade Payables. C) Other Current Liabilities. D) Short-term Provisions. Show Answer Correct Answer: C) Other Current Liabilities. 7. 11% Debentures redeemable within 12 months of the date of balance sheet will be shown under: A) Short term borrowings. B) Short term provisions. C) Other current liabilities. D) Trade payables. Show Answer Correct Answer: C) Other current liabilities. 8. The section of the Income Statement in which gross profit is claculated is known as: A) Profit & Loss Section. B) Trading Section. C) Statement of Financial Position. D) Statement of Account. Show Answer Correct Answer: B) Trading Section. 9. Balance Sheet is also known as ..... A) Profit and loss Account. B) Petty Cash Book. C) Earnings Account. D) Statement of Financial Position. Show Answer Correct Answer: D) Statement of Financial Position. 10. Provision for tax appears in B/S under the sub head A) Short Term Provisions. B) Reserve & Surplus. C) Ling Term Provisions. D) Other Current Liabilities. Show Answer Correct Answer: A) Short Term Provisions. 11. Pamela acquired 80% of the share capital of Samantha on 1 January 20X1. Part of thepurchase consideration was $ 200, 000 cash to be paid on 1 January 20X4. The applicable costof capital is 10%.What will the deferred consideration liability be at 31 December 20X2? A) $ 150, 262. B) $ 165, 288. C) $ 200, 000. D) $ 181, 818. Show Answer Correct Answer: D) $ 181, 818. 12. ..... are assets which are obtained for use and not for resale, which help the business earn revenue. A) Current Assets. B) Non-Current Assets. C) All the above. D) None of the above. Show Answer Correct Answer: B) Non-Current Assets. 13. Schedule III has prescribed ..... format for preparation of balance sheet A) Horizontal. B) Vertical. C) Both horizontal and vertical. D) None of the above. Show Answer Correct Answer: B) Vertical. 14. The debentures to be redeemed within 12 months from the date of balance sheet is shown under A) Short term borrowings. B) Long term borrowings. C) Other current liabilities. D) Long term liabilities. Show Answer Correct Answer: C) Other current liabilities. 15. Depreciation on motor vehicles should be classified under administration expenses A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 16. Which can't be used to calculate the return of shareholders? A) Earnings per share. B) Dividends per share. C) Net asset value. D) Return on shareholders equity. Show Answer Correct Answer: C) Net asset value. 17. On a common-size income statement, each dollar amount is expressed as a percentage of: A) Net income. B) Sales. C) Total expenses. D) None of the above. Show Answer Correct Answer: B) Sales. 18. Which of the following is the element of financial statements? A) Balance Sheet. B) Profit & Loss A/c. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 19. Interest accrued and due on debentures appear in a Company's Balance Sheet under the Sub-head ..... A) Short-term Borrowings. B) Trade Payables. C) Other Current Liabilities. D) Short-term Provisions. Show Answer Correct Answer: C) Other Current Liabilities. 20. Nora, Abigail, and William are playing a game of 'Business Tycoon'. They are trying to understand the purpose of the statement of cash flows in their game. Can you help them out? A) To provide information about cash inflows and outflows. B) To track the company's stock performance. C) To calculate the company's net income. D) To determine the company's market share. Show Answer Correct Answer: A) To provide information about cash inflows and outflows. 21. Fixed Deposits appear in a Company's B/S under ..... A) Current Liabilities. B) Current Assets. C) Long Term Provisions. D) Long Term Borrowings. Show Answer Correct Answer: D) Long Term Borrowings. 22. Which from the list below is the formula to calculate the mark-up % achieved? A) Net profit / Cost of sales x 100. B) Gross Profit / Sales x 100. C) Gross Profit / Cost of sales x 100. D) Cost of sales x 100 / 150. Show Answer Correct Answer: C) Gross Profit / Cost of sales x 100. 23. Sun Farm bought seed and fertilizer on credit from One Nursery Sdn Bdh. What is the effect of this transaction? A) Increase in both asset and liability. B) Increase in asset and decrease in liability. C) Increase liability and decrease in asset. D) Decrease in both asset and liability. Show Answer Correct Answer: A) Increase in both asset and liability. 24. Extra payment based on goods sold by individual staff A) Discount. B) Salary. C) Wages. D) Commission. Show Answer Correct Answer: D) Commission. 25. ..... appears in a companies balance sheet under the sub-head:short-term provisions: A) Interest accrued and due on borrowings. B) Provision for tax. C) Unpaid dividents. D) Calls in advance. Show Answer Correct Answer: B) Provision for tax. ← 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 10Class 12 Accountancy Chapter 7 Financial Statements Of Companies Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books