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Accountancy: CUET Mock Test - 4


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40 Questions MCQ Test CUET Mock Test Series | Accountancy: CUET Mock Test - 4

Accountancy: CUET Mock Test - 4 for Class 12 2023 is part of CUET Mock Test Series preparation. The Accountancy: CUET Mock Test - 4 questions and answers have been prepared according to the Class 12 exam syllabus.The Accountancy: CUET Mock Test - 4 MCQs are made for Class 12 2023 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Accountancy: CUET Mock Test - 4 below.
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Accountancy: CUET Mock Test - 4 - Question 1

Which of the following is not included under the head non-current assets?

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 1

They come under the head current assets.

Accountancy: CUET Mock Test - 4 - Question 2

Financial statements are useful for both short-term and long-term investors.

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 2

Financial statements help the investors to assess long-term and short-term solvency as well as the profitability of the concern.

Accountancy: CUET Mock Test - 4 - Question 3

The financial statements provide basic input for industrial, taxation and other economic policies of the government.

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 3

The fiscal policies, particularly taxation policies of the government, are related with the financial performance of corporate undertakings. The financial statements provide basic input for industrial, taxation and other economic policies of the government.

Accountancy: CUET Mock Test - 4 - Question 4

What will be the amount shown under the head current assets when the following data is given?
Inventories = ₹ 2,30,000
Trade Receivables = ₹ 70,000
Cash and Cash Equivalents = ₹ 50,000
Current Investments = ₹ 50,000

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 4

Current assets = Inventories + Trade receivables + Cash and cash equivalents + Current investments
Current assets = 50,000 + 70,000 + 50,000 + 2,30,000 = ₹ 4,00,000

Accountancy: CUET Mock Test - 4 - Question 5

Which of the following item can be presented on the asset side of the balance sheet of a company?

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 5

Public deposits are long-term borrowings and are non-current liabilities, hence not shown on the assets side of the balance sheet.

Accountancy: CUET Mock Test - 4 - Question 6

________ reserve can be used freely for any purpose.

Accountancy: CUET Mock Test - 4 - Question 7

Which of the following is not included under ‘revenue from operations’ in the statement of profit and loss?

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 7

It is included in ‘other incomes’ in the statement of profit and loss.

Accountancy: CUET Mock Test - 4 - Question 8

For a financial company, interest on loans given is shown in the statement of profit and loss as

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 8

Lending is an operating activity for financial companies, so interest on loans is an operating income for them, hence included under revenue from operations.

Accountancy: CUET Mock Test - 4 - Question 9

Which of the following points out the importance of financial statements?

Accountancy: CUET Mock Test - 4 - Question 10

Directions: There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below
Assertion (A): The management uses accounting information to arrive at various decisions like determination of selling price, cost controls, investment into new ventures, etc.
Reason (R): The management has the responsibility to safeguard the customer’s investment and increase its value by managing the business efficiently.

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 10

The management has the responsibility to safeguard the owner’s investment and increase its value by managing the business efficiently.

Accountancy: CUET Mock Test - 4 - Question 11

Direction: Read the following case study and answer the question on the basis of the same.
XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to ₹4,00,000 and fees received for arranging loans amounted to ₹ 1,00,000. Its miscellaneous income amounted to ₹ 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of ₹ 70,000. Moreover, it earned a profit of ₹ 75,000 on the sale of investments during the year.
Profit on sale of investments will be shown as in the statement of profit and loss.

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 11

Revenue from operations as it is a financial company.

Accountancy: CUET Mock Test - 4 - Question 12

Which of the following are the objectives of financial statements?
(i) To provide information about economic resources and obligations of a business.
(ii) To provide information about the earning capacity of the business.
(iii) To provide information about cash flows.
(iv) To judge effectiveness of management.

Accountancy: CUET Mock Test - 4 - Question 13

Bank overdraft and cash credit are treated as ‘short-term borrowings’ in the balance sheet of a company.

Accountancy: CUET Mock Test - 4 - Question 14

Which of the following is not included under the head shareholder’s fund?

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 14

It is included under non-current liabilities.

Accountancy: CUET Mock Test - 4 - Question 15

Calls-in-advance are shown under the head ‘current liabilities’ and sub-head ‘other current liabilities’ in the balance sheet of a company.

Accountancy: CUET Mock Test - 4 - Question 16

Which of the following is not presented under ‘current liabilities’ in the balance sheet of a company?

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 16

Deferred tax liabilities

Accountancy: CUET Mock Test - 4 - Question 17

Preliminary expenses of ₹ 35,000 are shown in the balance sheet under which of the following the head?

Accountancy: CUET Mock Test - 4 - Question 18

How are financial statements beneficial to owners of a company?
(i) Financial statements report the performance of the management to the shareholders.
(ii) The gaps between the management performance and ownership expectations can be understood with the help of financial statements.

Accountancy: CUET Mock Test - 4 - Question 19

Public deposits appear under which of the following head in a company’s balance sheet?

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 19

Public deposits are long-term borrowings so they are included under the head non-current liabilities.

Accountancy: CUET Mock Test - 4 - Question 20

Unclaimed dividend will be shown under the head ______

Accountancy: CUET Mock Test - 4 - Question 21

Interest accrued and due on secured loans come under head ________

Accountancy: CUET Mock Test - 4 - Question 22

Debenture redemption reserve is shown under the head ‘shareholders’ funds’ and sub-head ‘reserves and surplus’ in the balance sheet of a company.

Accountancy: CUET Mock Test - 4 - Question 23

______ are the liabilities which are due within 1 year.

Accountancy: CUET Mock Test - 4 - Question 24

Copyrights and patents are shown under the head ‘non-current liabilities’ and sub-head ‘other long-term liabilities’ in the balance sheet of a company.

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 24

Copyrights and patents are shown under the head ‘non-current assets’ under the sub-head ‘fixed assets-intangible assets’ in the balance sheet of a company.

Accountancy: CUET Mock Test - 4 - Question 25

What will be the amount shown under the head current liabilities when the following data is given?
Short-term borrowings = ₹ 3,00,000
Trade Payables = ₹ 2,00,000
Other Current Liabilities = ₹ 1,00,000
Short-term Provisions = ₹ 1,00,000

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 25

Current liabilities = Short-term borrowings + Trade Payables + Other current liabilities + Short-term provisions
Current liabilities = 3,00,000 + 2,00,000 + 1,00,000 + 1,00,000 
= ₹ 7,00,000

Accountancy: CUET Mock Test - 4 - Question 26

Which of the following is not a sub-head under the current assets?

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 26

They are intangible assets and come under sub-head fixed assets under the head non-current assets.

Accountancy: CUET Mock Test - 4 - Question 27

The financial statements provide basic input for industrial, taxation and other economic policies of the government.

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 27

The fiscal policies, particularly taxation policies of the government, are related with the financial performance of corporate undertakings. The financial statements provide basic input for industrial, taxation and other economic policies of the government.

Accountancy: CUET Mock Test - 4 - Question 28

Loose tools worth ? 5,000 appear under which of the following head/sub-head in a company’s balance sheet?

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 28

Loose tools are considered as a part of inventories.

Accountancy: CUET Mock Test - 4 - Question 29

Which of the following item can be presented on the asset side of the balance sheet of a company?

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 29

Public deposits are long-term borrowings and are non-current liabilities, hence not shown on the assets side of the balance sheet.

Accountancy: CUET Mock Test - 4 - Question 30

What is the total under assets side of the balance sheet when the following information is given?
Non-current Assets = ₹ 5,00,000
Current Assets = ₹ 2,00,000
Current Liabilities = ₹ 3,00,000

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 30

Total under assets side = Non-current assets + Current assets = 5,00,000 + 2,00,000 
= ₹ 7,00,000

Accountancy: CUET Mock Test - 4 - Question 31

Which of the following is not a part of finance cost (in the statement of profit and loss)?

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 31

They are shown under other expenses.

Accountancy: CUET Mock Test - 4 - Question 32

What will be the revenue from operations when the following data is available?
Sales = ₹ 20,00,000
Sales Return = ₹ 1,00,000
Sale of Scrap = ₹ 40,000

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 32

Revenue from operations = Sales -  Sales return + Sale of scrap = 20,00,000 - 1,00,000 + 40,000 
= ₹ 19,40,000

Accountancy: CUET Mock Test - 4 - Question 33

Calculate total revenue when following data is given?
Revenue from Operations = ₹ 5,00,000
Other Income = ₹ 75,000
Finance Cost = ₹ 80,000

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 33

Total revenue = Revenue from operations + Other income = 5,00,000 + 75,000 = ₹ 5,75,000

Accountancy: CUET Mock Test - 4 - Question 34

What is the amount of total expenses that will be shown in the statement of profit and loss when the following information is given?
Cost of Materials Consumed = ₹ 6,00,000
Employee benefit Expenses = ₹ 2,00,000
Finance Costs = ₹ 2,00,000
Other Expenses = ₹ 1,00,000

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 34

Total expenses = Cost of materials consumed + Employee benefit expenses + Finance costs + Other expenses
Total expenses = 6,00,000 + 2,00,000 + 2,00,000 + 1,00,000 
= ₹ 11,00,000

Accountancy: CUET Mock Test - 4 - Question 35

The term financial analysis includes

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 35

The term ‘financial analysis’ includes both ‘analysis and interpretation’. Analysis means simplification of financial data by methodical classification given in the financial statements. Interpretation means explaining the meaning and significance of the data.

Accountancy: CUET Mock Test - 4 - Question 36

Which of the following parties are interested in financial statement analysis?
(i) Top management
(ii) Labour union
(iii) Lenders
(iv) Investors

Accountancy: CUET Mock Test - 4 - Question 37

Financial statement analysis helps in judging the ability of the firm to repay its debt and assessing the short-term as well as the long-term liquidity position of the firm.

Accountancy: CUET Mock Test - 4 - Question 38

The analysis that is made to review and analyse the financial statements for a number of years is known as

Accountancy: CUET Mock Test - 4 - Question 39

Financial statement analysis considers price level changes.

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 39

Financial statement analysis is done of historical data and does not consider price level changes.

Accountancy: CUET Mock Test - 4 - Question 40

Investors analyse financial statements for which of the following purpose?
(i) To assess the firm’s present and future profitability.
(ii) To understand the firm’s capital structure.
(iii) To evaluate the efficiency of the management.
Choose the correct option

Detailed Solution for Accountancy: CUET Mock Test - 4 - Question 40

Investors have invested their money in the firm’s shares, so they are interested about the firm’s earnings. As such, they concentrate on the analysis of the firm’s present and future profitability.

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