Accountancy Chapter 3 (Part 1) – Financial statements of a company MCQ Question and Answers – MCQs for Practice

1. As per Schedule III, Part I of the Companies Act, 2013 ’Calls-in-arrears’ will be presented under which of the following head/sub-head, in the Balance Sheet of a company?

2. Purchase of goods for reselling is shown in the Statement of Profit and Loss under:

3. _____ is the diminution in the value of fixed assets whereas _____ is writing off the amount relating to intangible assets.

4. Which of the Following is An Incorrect Feature of Presentation of Financial Statements?

5. Which of the Following is A Correct Feature of Presentation of Financial Statements?

6. Which of the following is not a subhead of current liabilities?

7. _______are the basic and formal annual reports through which the corporate management communicates financial information to its owners and various other external parties.

8. While, preparing statement of profit and loss the revenue is included in the sales of the year in which the sale was undertaken even though the sale price may be received over a number of years. The assumption is known as _____.

9. According to which Schedule of the Indian Companies Act, 2013, Indian companies have to prepare Balance Sheet:

10. Interest Accrued and due on debentures appear in a company’s Balance sheet under the sub head_____.

11. Which of the following is the element of financial statements?

12. Financial Statements reflect a combination of recorded facts, personal judgements and ______

13. Closing stock should be valued at Cost or Market price, whichever is lower. What Resembles with the nature of statement above?

14. Preliminary expenses are to be written-off completely in the year in which such expenses are incurred. Such expenses Should be Written-off First From______.

15. Which of the following is not required to be prepared under the Companies Act?

16. These reports have to provide the significant policies, concepts followed in the process of accounting and changes taken up in them during the year to understand these statements in a better way should be under purview of?

17. Which Item is show under the head ` long term borrowings ` while preparing balance sheet?

18. Amount set aside to meet losses due to bad debts is called:

19. _______assumes that the enterprise is treated as a going concern and exists for a longer period of time So the assets are shown on historical cost basis.

20. Which of the following is not a part of Finance Cost in Statement of Profit and Loss?