Bihar Board 12th Accountancy Objective Answers Chapter 8 Financial Statements of a Company

Bihar Board 12th Accountancy Objective Questions and Answers

Bihar Board 12th Accountancy Objective Answers Chapter 8 Financial Statements of a Company

Question 1.
Financial Statements are :
(A) Anticipated facts
(B) Recorded facts
(C) Estimated facts
(D) None of these
Answer:
(B) Recorded facts

Question 2.
The term current assets includes :
(A) Stock
(B) Debtors
(C) Cash
(D) All of these
Answer:
(D) All of these

Question 3.
Which of the following is not a part of financial statement of a company ?
(A) Profit & Loss A/c
(B) Balance Sheet
(C) Ledger Account
(D) Cash Flow Statement
Answer:
(C) Ledger Account

Question 4.
Under which heading of Balance Sheet is general reserve shown:
(A) Miscellaneous Expenditure
(B) Share Capital
(C) Reserves & Surplus
(D) None of these
Answer:
(C) Reserves & Surplus

Question 5.
Current Assets on the Assets side of Balance Sheet of a Company includes:
(A) Sundry Debtors
(B) Cash in hand
(C) Stock
(D) All of these
Answer:
(D) All of these

Question 6.
As per provisions of Companies Act, 2013 under which Section, the final accounts of a company is prepard :
(A) 128
(B) 210
(C) 129
(D) 212
Answer:
(C) 129

Question 7.
According to which part of Schedule III of the Indian Companies Act, 2013, Indian companies have to prepare Balance Sheet:
(A) Part 1
(B) Part 2
(C) Part 3
(D) Part 4
Answer:
(A) Part 1

Question 8.
Balance sheet of companies is now prepared in :
(A) Horizontal Form
(B) Vertical Form
(C) Either (a) or (B) Form
(D) None of these
Answer:
(B) Vertical Form

Question 9.
Goodwill of a company is shown on the assets side of the Balance Sheet under the head.
(A) Current Assets
(B) Non-current Assets
(C) Miscellaneous Expenditure
(D) None of these
Answer:
(B) Non-current Assets

Question 10.
The form of Balance Sheet as per Companies Act, 2013 is:
(A) Horizontal
(B) Horizontal or Vertical
(C) Vertical
(D) None of these
Answer:
(C) Vertical

Question 11.
Which of the following assets is not shown undeer the head ‘Fixed Asset’ in the Balance Sheet ?
(A) Goodwill
(B) Bills Receivable
(C) Buildings
(D) Vehicle
Answer:
(B) Bills Receivable

Question 12.
Securities Premium Account is shown on the liabilities side in the Balance Seet Unde heading
(A) Reserves and Surplus
(B) Current Liabilities and Provisions
(C) Share Capital
(D) Contingent Liabilities
Answer:
(A) Reserves and Surplus

Question 13.
Debentures are shown in the Balance Sheet under the head of:
(A) Short-term Loan
(B) Secured Loan
(C) Current Liability
(D) Share Capital
Answer:
(B) Secured Loan

Question 14.
Divident is usually paid :
(A) On Authorised Capital
(B) On Ussued Capital
(C) On Paid-up Capital
(D) On Called-up Capital
Answer:
(C) On Paid-up Capital

Question 15.
Amount set aside to meet losses due to bad debts is called:
(A) Reserve
(B) Provision
(C) Liability
(D) None of these
Answer:
(B) Provision

Question 16.
Which Section of the Commaines Act, 2013 requires that the Balance Sheet to be prepared in prescribed form ?
(A) Section 128
(B) Section 130
(C) Section 129
(D) Section 212
Answer:
(C) Section 129

Question 17.
The prescribe from the Balance Sheet has given in the Schedule:
(A) VI Part I
(B) VI Part II
(C) III Part I
(D) VIP Part IV
Answer:
(C) III Part I

Question 18.
Share capital is shown in Balance Sheet under. the head ?
(A) Authorised Capital
(B) Issued Capital
(C) Paid-up Capital
(D) Shareholders’ Funds
Answer:
(D) Shareholders’ Funds

Question 19.
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
Answer:
(C) Both (A) and (B)

Question 20.
Which of the following is not required to be perpared under the Comp-anies Act:
(A) Statement of Profit & Loss
(B) Balance Sheet
(C) Anditor’s Report
(D) Fund Flow Statement
Answer:
(C) Anditor’s Report

Question 21.
Fquity ₹ 90,000 Liabilities ₹ 60,000 Profit of the year ₹ 20,000. Then total assets will be :
(A) ₹ 1.70,000
(B) ₹ 1,50,000
(C) ₹1,10,000
(D) ₹ 80,000
Answer:
(A) ₹ 1.70,000

Question 22.
The reserve which is created for a particular (specific) purpose and which is a charge against revenue is called:
(A) Capital Reserve
(B) General Resereve
(C) Secret Reserve
(D) Specific Reserve
Answer:
(D) Specific Reserve

Question 23.
An Annual Report is issued by a company to its:
(A) Directors
(B) Authors
(C) Shareholders
(D) Management
Answer:
(C) Shareholders

Question 24.
The profit and loss disclosed by the accounts of a company is:
(A) Transferred to share capital account
(B) Shown under the head of ‘Current l iabilities’ and provisions
(C) Shown under the head ‘Reserves and Surplus
(D) None of these
Answer:
(C) Shown under the head ‘Reserves and Surplus

Question 25.
The assets of a business can be classified as :
(A) Fixed and Non-fixed Assets
(B) Tangible and Intangible Assets
(C) Non-Current and Current Asset
(D) None of these
Answer:
(C) Non-Current and Current Asset

Question 26.
The term financial statements includes :
(A) Statement of Profit & Loss
(B) Balance Sheet
(C) Statement of Profit & Loss and Balance Sheet
(D) None of these
Answer:
(C) Statement of Profit & Loss and Balance Sheet

Question 27.
Balance Sheet is a :
(A) Account
(B) Statement
(C) Both (A) and (B)
(D) All the above
Answer:
(B) Statement

Question 28.
Financial statements are the product of accounting process.
(A) First
(B) Second
(C) End
(D) None of these
Answer:
(C) End

Question 29.
Financial statements disclose :
(A) Monetary information
(B) Qualitative information
(C) Non-monetary information
(D) All the above
Answer:
(A) Monetary information

Question 30.
Statement of Profit & Loss is also called………:
(A) Operating Profit
(B) Balance Sheet
(C) Income Statement
(D) Trading Account

Answer:
(C) Income Statement

Question 31.
Preliminary expenses are shown in the Balance Sheet under the head:
(A) Non-current assets
(B) Current assets
(C) Non-current liabilities
(D) Deducted from securities premium reserve
Answer:
(D) Deducted from securities premium reserve

Question 32.
Debit Balance of Profit & Loss Statement will be shown on:
(A) Assets Side of Balance Sheet
(B) Liabilities Side of Balance Sheet
(C) Under the head Reserve & Surplus
(D) Under the head Reserves and Surplus as a negative item
Answer:
(D) Under the head Reserves and Surplus as a negative item

Question 33.
Patents and copyrights fall under the category of:
(A) Current Assets
(B) Liquid Assets
(C) Intangible Assets
(D) None of these
Answer:
(C) Intangible Assets

Question 34.
Goodwill falls under which category of assets:
(A) Current Assets
(B) Tangible Assets
(C) Intangible Assets
(D) None of the above
Answer:
(C) Intangible Assets

Question 35.
Contingent Liabilities areexhibited under the heading:
(A) Fixed Liabilities
(B) Current Liabilities
(C) As a footnote
(D) None of these
Answer:
(C) As a footnote

Question 36.
Provision for Provident Funds is shown in the Balance Sheet of a company under the head :
(A) Reserves and Surplus
(B) Non-current Liabilities
(C) Provision
(D) Contingent Liabilities
Answer:
(B) Non-current Liabilities

Question 37.
Preliminary Expenses are shown in the Balance Sheet under which head ?
(A) Fixed Assets
(B) Reserves and Surplus
(C) Loans & Advances
(D) None of these
Answer:
(D) None of these