Accountancy: CUET Mock Test - 4
40 Questions MCQ Test CUET Mock Test Series | Accountancy: CUET Mock Test - 4
| 1 Crore+ students have signed up on EduRev. Have you? |
Which of the following is not included under the head non-current assets?
They come under the head current assets.
Financial statements are useful for both short-term and long-term investors.
Financial statements help the investors to assess long-term and short-term solvency as well as the profitability of the concern.
The financial statements provide basic input for industrial, taxation and other economic policies of the government.
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.
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
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
Which of the following item can be presented on the asset side of the balance sheet of a company?
Public deposits are long-term borrowings and are non-current liabilities, hence not shown on the assets side of the balance sheet.
________ reserve can be used freely for any purpose.
Which of the following is not included under ‘revenue from operations’ in the statement of profit and loss?
It is included in ‘other incomes’ in the statement of profit and loss.
For a financial company, interest on loans given is shown in the statement of profit and loss as
Lending is an operating activity for financial companies, so interest on loans is an operating income for them, hence included under revenue from operations.
Which of the following points out the importance of financial statements?
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.
The management has the responsibility to safeguard the owner’s investment and increase its value by managing the business efficiently.
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.
Revenue from operations as it is a financial company.
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.
Bank overdraft and cash credit are treated as ‘short-term borrowings’ in the balance sheet of a company.
Which of the following is not included under the head shareholder’s fund?
It is included under non-current liabilities.
Calls-in-advance are shown under the head ‘current liabilities’ and sub-head ‘other current liabilities’ in the balance sheet of a company.
Which of the following is not presented under ‘current liabilities’ in the balance sheet of a company?
Deferred tax liabilities
Preliminary expenses of ₹ 35,000 are shown in the balance sheet under which of the following the head?
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.
Public deposits appear under which of the following head in a company’s balance sheet?
Public deposits are long-term borrowings so they are included under the head non-current liabilities.
Unclaimed dividend will be shown under the head ______
Interest accrued and due on secured loans come under head ________
Debenture redemption reserve is shown under the head ‘shareholders’ funds’ and sub-head ‘reserves and surplus’ in the balance sheet of a company.
______ are the liabilities which are due within 1 year.
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.
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.
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
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
Which of the following is not a sub-head under the current assets?
They are intangible assets and come under sub-head fixed assets under the head non-current assets.
The financial statements provide basic input for industrial, taxation and other economic policies of the government.
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.
Loose tools worth ? 5,000 appear under which of the following head/sub-head in a company’s balance sheet?
Loose tools are considered as a part of inventories.
Which of the following item can be presented on the asset side of the balance sheet of a company?
Public deposits are long-term borrowings and are non-current liabilities, hence not shown on the assets side of the balance sheet.
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
Total under assets side = Non-current assets + Current assets = 5,00,000 + 2,00,000
= ₹ 7,00,000
Which of the following is not a part of finance cost (in the statement of profit and loss)?
They are shown under other expenses.
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
Revenue from operations = Sales - Sales return + Sale of scrap = 20,00,000 - 1,00,000 + 40,000
= ₹ 19,40,000
Calculate total revenue when following data is given?
Revenue from Operations = ₹ 5,00,000
Other Income = ₹ 75,000
Finance Cost = ₹ 80,000
Total revenue = Revenue from operations + Other income = 5,00,000 + 75,000 = ₹ 5,75,000
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
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
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.
Which of the following parties are interested in financial statement analysis?
(i) Top management
(ii) Labour union
(iii) Lenders
(iv) Investors
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.
The analysis that is made to review and analyse the financial statements for a number of years is known as
Financial statement analysis considers price level changes.
Financial statement analysis is done of historical data and does not consider price level changes.
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
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.
|
118 tests
|
|
Use Code STAYHOME200 and get INR 200 additional OFF
|
Use Coupon Code |
|
118 tests
|
Download free EduRev App
Related content with Accountancy: CUET Mock Test - 4
|
|
|
|
Related tests with Accountancy: CUET Mock Test - 4
|
|
|
|
|
|
© EduRev
|
Education Revolution
|
Follow Us
|
