MCQ on Class 12 Accountancy Chapter 8 Financial Statements of a Company with Answers

Find here the NCERT Book Multiple Choice Questions from Class 12 Accountancy book with Answers Pdf free download as per CBSE new exam pattern. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Multiple Choice Questions of Class 12 Accountancy. Each question has four options followed by the right answer. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE.


Q1. 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) Funds Flow Statement

(D) Funds Flow Statement


Q2. According to prescribed order of assets in a Company’s Balance Sheet ……………………… assets should be shown first of all.

(A) Non-Current Assets
(B) Current Assets
(C) Current Investments
(D) Loans and Advances

(A) Non-Current Assets


Q3. In a Company’s Balance Sheet …………………. appear under the head ‘non-current assets’.

(A) Goodwill
(B) Patents
(C) Vehicles
(D) All of the above

(D) All of the above


Q4. 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

(B) Shareholder’s Funds


Q5. Calls in advance appear in a Company’s Balance Sheet under ………………..

(A) Share Capital
(B) Current Liability
(C) Long-term Borrowings
(D) Reserve & Surplus

(B) Current Liability


Q6. Short-term Borrowings appear in a Company’s Balance Sheet under the head …………………..

(A) Current Assets
(B) Current Liabilities
(C) Non-Current Liabilities
(D) Non-Current Assets

(B) Current Liabilities


Q7. Fixed Deposits appear in a Company’s Balance Sheet under :

(A) Current Assets
(B) Current Liabilities
(C) Long-term Provisions
(D) Long-term Borrowings

(D) Long-term Borrowings


Q8. The reserve which is created for a particular (specific) purpose and which is a charge against revenue is called:

(a) Capital Reserve
(b) General Reserve
(c) Secret Reserve
(d) Specific Reserve

(d) Specific Reserve


Q9. An Annual Report is issued by a company to its:

(a) Directors
(b) Authors
(c) Shareholders
(d) Management

(c) Shareholders


Q10. 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 liabilities’ and provisions
(c) Shown under the head ‘Reserves and Surplus
(d) None of these

(c) Shown under the head ‘Reserves and Surplus


Q11. 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

(c) Non-Current and Current Asset


Q12. 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

(c) Statement of Profit & Loss and Balance Sheet


Q13. Balance Sheet is a :

(a) Account
(b) Statement
(c) Both (a) and (b)
(d) All the above

(b) Statement


Q14. Financial statements are the product of accounting process.

(a) First
(b) Second
(c) End
(d) None of these

(c) End


Q15.B Financial statements disclose :

(a) Monetary information
(b) Qualitative information
(c) Non-monetary information
(d) All the above

(a) Monetary information


Q16. 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

(c) other current liabilities


Q17. Which of the following item will not appear under short term provisions

(a) Provision for tax
(b) Proposed Dividend
(c) Provision for retirement benefits
(d) Provision for doubtful debts

(c) Provision for retirement benefits


Q18. Capital Reserve will be shown under

(a) current liabilities
(b) share capital
(c) reserves and surplus
(d) deferred tax liabilities

(c) reserves and surplus


Q19. Dividend is paid on

(a) authorised capital
(b) issued capital
(c) called up capital
(d) paid up capital

(d) paid up capital


Q20. Which of the following is not required to be prepared under companies act

(a) Statement of Profit and Loss
(b) Balanc Sheet
(c) Cash Flow Statement
(d) Funds Flow Statement

(d) Funds Flow Statement


Q21. Goodwill appears in a company’s balance sheet under

(a) Unamortised assets
(b) Non-current investments
(c) Intangible assets
(d) Tangible assets

(c) Intangible assets


Use the above-provided NCERT MCQ Questions for Class 12 Accountancy with Answers Pdf free download. We hope the given NCERT MCQ Questions for Class 12 Accountancy PDF Free Download will definitely yield fruitful results. If you have any queries regarding The CBSE Class 12 Accountancy MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.


Accountancy MCQ Class 12 Part 1 and Accounts MCQ Class 12 Part 2

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