Test: Financial Statements And Their Analysis - 1


10 Questions MCQ Test Crash Course of Accountancy - Class 11 | Test: Financial Statements And Their Analysis - 1


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This mock test of Test: Financial Statements And Their Analysis - 1 for Commerce helps you for every Commerce entrance exam. This contains 10 Multiple Choice Questions for Commerce Test: Financial Statements And Their Analysis - 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Financial Statements And Their Analysis - 1 quiz give you a good mix of easy questions and tough questions. Commerce students definitely take this Test: Financial Statements And Their Analysis - 1 exercise for a better result in the exam. You can find other Test: Financial Statements And Their Analysis - 1 extra questions, long questions & short questions for Commerce on EduRev as well by searching above.
QUESTION: 1

This a MCQ (Multiple Choice Question) based practice test of Chapter 8 - Financial Statements and their Analysis of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinations

Q  Which of the following is a fictitious Asset?

Solution:

Classification of items:
Preliminary Expense --- Fictitious Asset
Income Tax ------ Expense of company
Loose Tools ------- Current Assets 
Goodwill---------- Intangible Asset

QUESTION: 2

Which Indian Companies Act is in force these days?

Solution:

Indian Companies Act 2013 is in force these days. Earlier Companies Act 1956 was in force.

QUESTION: 3

Securities Premium Reserve is shown under:

Solution:

Securities premium reserve is shown under the heading Shareholders funds and sub heading Reserves and Surplus.

QUESTION: 4

Goodwill is not a ……..

Solution:

Goodwill is an intangible asset which comes under the heading of fixed assets. It is not a fictitious asset (for more detail see ultimate book of accountancy).

QUESTION: 5

In a company’s balance sheet Assets are shown in the order of …..

Solution:
QUESTION: 6

With the Permission of Registrar accounting period can be extended up to …

Solution:

A company can obtain special permission form registrar to extend the accounting period which can be up to 18 months.

QUESTION: 7

A company prepares its Balance Sheet as per ……..

Solution:

Balance Sheet of a company is prepared as per the Schedule III of the Indian Companies Act, 2013.

QUESTION: 8

Office building under construction will be shown under……

Solution:

Office building under construction is shown under fixed assets i.e. Capital work in progress.

QUESTION: 9

Claim against the company not yet acknowledged as debt, is a ….

Solution:

Claim against the company not acknowledged as debt is shown as contingent liability after preparing the balance sheet. It is shown as a footnote to the balance sheet.

QUESTION: 10

Which of the following is not shown under the heading of Reserves and surplus?

Solution:

Bills of exchange is not shown under the heading Reserves and surplus but following items will be shown under this heading: 
•Securities Premium Reserve 
•Statement of profit and loss
•Capital Reserve