Financial Statements And Their Analysis CBSE Questions & Answers

Financial Statements And Their Analysis

This is Accountancy Class 12 Financial Statements and their Analysis CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

A liability is classified as current when it satisfies the following conditions except

A
It is held for the purpose of being traded
B
It is expected to be settled in the company’s normal operating cycle
C
It is due to be settled beyond 12 months
Correct
D
The company does not have an unconditional right to offer settlement of the liability for at least 12 months after the reporting date

Money received against share warrants are not shown as part of ____but to be shown as a separate line items under ___

A
Share capital, Shareholders’ Funds
Correct
B
Shareholders’ Funds ,Share capital
C
Reserves and surplus, Shareholders’ Funds
D
Share capital ,Reserves and surplus

Share application money to the extent refundable or where minimum subscription is not met, such amount shall be shown separately under the

A
Reserves and surplus,
B
other current liabilities
Correct
C
Share capital
D
Shareholders’ Funds

Items such as Trade payables on account of purchase of Fixed Assets and interest accrued there on, Provisional Fund contribution will come under the head

A
Other Long Term Liabilities
Correct
B
Long Term provisions
C
Deferred Tax Liabilities
D
Long Terms borrowings

While preparing the Balance-Sheet.-Cash and Cash Equivalents which includes

A
All of these
Correct
B
Cheques, drafts on hand;
C
Balances with banks
D
Cash on hand

Financial commitments due to activities agreed by the company to be undertaken by it in future is called

A
Capital Commitments
B
None of these
C
Both of these
Correct
D
Uncalled Liability

Investments which are not held for purpose of resale are called

A
Current Investments
B
None of these
C
Both of these
D
Non Current Investments
Correct

An asset shall be classified as current when it satisfies any of the following criteria

A
It is expected to be realized in, or is intended for sale or consumption in the company’s normal operating cycle
B
It is cash or cash equivalents
C
It is expected to be realised beyond twelve months
Correct
D
It is held primarily for the purpose of being traded

Loans repayable on demand from banks and other parties, Deposits, Loans and advances from related parties are the examples of

A
Short Term Provisions
B
Short term borrowings
Correct
C
Other Current Liabilities
D
Trade Payables

In case the final balance of the Statement of profit and loss shows a ____ balance the same should be shown as ____ the totals of reserves

A
Credit , Deduction from
B
Debit, Addition to
C
All
D
Debit, Deduction from
Correct

Match the following items. Options given below.

A
a(iii), b(ii), c(i)
B
a(i), b(iii), c(ii)
C
a(iii), b(i), c(ii)
Correct
D
a(ii), b(i), c(iii)

Under Which main headings and sub-headings of Equity and Liabilities of the balance sheet as per the Revised Schedule VI of a company will you classify the items : Proposed dividend

A
long term borrowing, non-current liabilities
B
Current-Liabilities, short-term provision
Correct
C
non-current liabilities, long term borrowing
D
short-term provision, Current-Liabilities

Livestock, Land, Leasehold, furniture, vehicles and plant comes under the

A
Fixed Assets
Correct
B
Trade Receivables
C
Current Assets
D
Long term Loans and Advances

Following items shown under Reserve and Surplus except

A
Capital Reserves
B
DRR
C
Capital redemption reserves
D
Trade Receivables
Correct

Name the head under which Current Maturity of Long term debt will appear in the companies Balance sheet

A
Fixed assets
B
Shareholder’s Fund
C
Contingent liabilities
D
Other current liabilities
Correct