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

1
It is a point where total of sales is exactly equal to the total of cost to the total of cost of sales
  • A
    Loss Point
  • B
    Break even Point
    Correct
  • C
    Profit Point
  • D
    Zero Point
2
Non operating Incomes refers to
  • A
    the indirect expenses relating to the principal revenue generating activities of the enterprise
  • B
    Which are not from the principle revenue producing activities
    Correct
  • C
    The expenses and losses which are not related to the operating activities.
  • D
    Which are not from the principle revenue producing activities
3
___________ refer to the incomes which are not from the principal revenue producing activities
  • A
    operating Incomes
  • B
    Non operating Incomes
    Correct
  • C
    Non operating expenses
  • D
    operating expenses
4
Non operating Expenses examples are
  • A
    Loss on sale of fixed assets
  • B
    Intangible assets written off such as goodwill, patents etc.
  • C
    Interest on long term debts
  • D
    All of these
    Correct
5
Rent received, Profit on sale of fixed assets, Compensation for acquisition of land are example of
  • A
    operating expenses
  • B
    Non operating Incomes
    Correct
  • C
    operating Incomes
  • D
    Non operating expenses
6
Cross section analysis is:
  • A
    Vertical analysis
    Correct
  • B
    Time series analysis
  • C
    External analysis
  • D
    Horizontal analysis
7
Various figure of single year Financial Statement are converted in to percentage with respect to some common base. In Income Statement ____ in take as base (i.e.100) where as in Balance Sheet total _____are taken as base
  • A
    Purchase, liabilities
  • B
    Sales, liabilities
  • C
    Purchase , Assets
  • D
    Sales, Assets
    Correct
8
Statement of Profit and Loss is important as
  • A
    Reflects the true position of the assets and liabilities
  • B
    It ascertain the net profit and net loss
    Correct
  • C
    None of these
  • D
    Both of these
9
If the different financial data is analyzed and compared over a period of time is called is called
  • A
    Intra firm analysis
    Correct
  • B
    Both
  • C
    None of these
  • D
    Inter firm analysis
10
Internal analysis is done by
  • A
    Bankers
  • B
    Manager
    Correct
  • C
    Creditors
  • D
    Shareholders
11
Financial year is
  • A
    1st April-31st March
    Correct
  • B
    1st November-31st October
  • C
    1st August -31st July
  • D
    1st January-31st December
12
Where operating cycle can not be identified it is assumed to be a period of
  • A
    9 months
  • B
    6 months
  • C
    3 months
  • D
    12 months
    Correct
13
Name the sub-headings under which Shareholder’s Fund is classified in a companies balance sheet
  • A
    All of these
    Correct
  • B
    Reserves and Surplus
  • C
    Money received against share warrant
  • D
    Share Capital
14
Inventories include the following except
  • A
    patents
    Correct
  • B
    Goods acquired for trading
  • C
    Work-in-progress
  • D
    Stores and spares
15
Schedule ___ to the Companies Act, 1956 deals with the form of Balance Sheet and Profit and Loss Account and classified disclosure to be made therein and it applies uniformly to all the companies registered under the Companies Act, 1956
  • A
    VII
  • B
    VI
    Correct
  • C
    IV
  • D
    V