Accountancy: CUET Mock Test - 4 - Commerce MCQ

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

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

________ 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?

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

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.

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.

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?

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?

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?

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.

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

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

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?

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

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