laboursonline – MCQs, Mock Tests | ICSE XII MCQ Questions for Class 12 Accountancy set-9

Share capital is shown in Balance Sheet under. the head ?

1. Authorised Capital
2. Issued Capital
3. Paid-up Capital
4. Shareholders’ Funds

✅ Correct Answer: 4

The prescribe from the Balance Sheet has given in the Schedule:

1. VI Part I
2. VI Part II
3. III Part I
4. VII Part IV

✅ Correct Answer: 3

Which Section of the Companies Act, 2013 requires that the Balance Sheet to be prepared in prescribed form ?

1. Section 128
2. Section 130
3. Section 129
4. Section 212

✅ Correct Answer: 3

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

1. Reserve
2. Provision
3. Liability
4. None of these

✅ Correct Answer: 2

Divident is usually paid :

1. On Authorised Capital
2. On Ussued Capital
3. On Paid-up Capital
4. On Called-up Capital

✅ Correct Answer: 3

Debentures are shown in the Balance Sheet under the head of:

1. Short-term Loan
2. Secured Loan
3. Current Liability
4. Share Capital

✅ Correct Answer: 2

Securities Premium Account is shown on the liabilities side in the Balance Sheet Under heading

1. Reserves and Surplus
2. Current Liabilities and Provisions
3. Share Capital
4. Contingent Liabilities

✅ Correct Answer: 1

Which of the following assets is not shown undeer the head ‘Fixed Asset’ in the Balance Sheet ?

1. Goodwill
2. Bills Receivable
3. Buildings
4. Vehicle

✅ Correct Answer: 2

The form of Balance Sheet as per Companies Act, 2013 is:

1. Horizontal
2. Horizontal or Vertical
3. Vertical
4. None of these

✅ Correct Answer: 3

Goodwill of a company is shown on the assets side of the Balance Sheet under the head.

1. Current Assets
2. Non-current Assets
3. Miscellaneous Expenditure
4. None of these

✅ Correct Answer: 2

Interpretation of Financial Statements includes:

1. Criticisms and Analysis
2. Comparison and Trend Study
3. Drawing Conclusion
4. All the above

✅ Correct Answer: 4

Horizontal Analysis is also known as :

1. Dynamic Analysis
2. Structural Analysis
3. Static Analysis
4. None of these

✅ Correct Answer: 1

Vertical Analysis is also known as :

1. Static Analysis
2. Dynamic Analysis
3. Structural Analysis
4. None of these

✅ Correct Answer: 1

Comparative Statements are also known as :

1. Dynamic Analysis
2. Horizontal Analysis
3. Vertical Analysis
4. External Analysis

✅ Correct Answer: 2

Common-size Statement are also known as:

1. Dynamic Analysis
2. Horizontal Analysis
3. Vertical Analysis
4. External Analysis

✅ Correct Answer: 3

The most commonly used tools for financial analysis are:

1. Comparative Statements
2. Common-size Statement
3. Accounting Ratios
4. All the above

✅ Correct Answer: 4

The analysis of financial statement by a shareholder is an example of:

1. External Analysis
2. Internal Analysis
3. Vertical Analysis
4. Horizontal Analysis

✅ Correct Answer: 1

For calculating trend percentages any year is selected as:

1. Current year
2. Previous year
3. Base year
4. None of these

✅ Correct Answer: 3

Tools for comparison of financial statements are :

1. Comparative Balance Sheet
2. Comparative Income Statement
3. Common-size Statement
4. All the above

✅ Correct Answer: 4

Trend ratios and trend percentage are used in :

1. Dynamic analysis
2. Static analysis
3. Horizontal analysis
4. Vertical Analysis

✅ Correct Answer: 3

Comparative Financial Statements show:

1. Financial position of a concern
2. Earning capacity of a concern
3. Both of them
4. None of these

✅ Correct Answer: 3

Comparative financial analysis process shows the comparison between the items of which statement:

1. Balance Sheet
2. Profit & Loss Statement
3. (a) and (b) both
4. None of these

✅ Correct Answer: 3

Which of these are not the method of financial statement analysis ?

1. Ratio Analysis
2. Comparative Analysis
3. Trend Analysis
4. Capitalisation Method

✅ Correct Answer: 4

Common-size financial statements are mostly prepared:

1. In proportion
2. In percentage
3. (a) and (b) both
4. None of these

✅ Correct Answer: 2

Tangible assets of company increased from T 4,00,000 to T 5,00,000. What is the percentage of change ?

1. 20%
2. 25%
3. 33%
4. 50%

✅ Correct Answer: 2

A company’s shareholders fund was 7 8,00,000 in the year 2015. It because 7 12,00,000 in the year 2016. What is percentage of change ?

1. 100%
2. 25%
3. 50%
4. 33.3%

✅ Correct Answer: 3

A company’s net sales are ₹ 15,00,000; cost of sales is ₹ 10,00,000 and indirect expenses are ₹ 3,00,000, the amount gross profit will be:

1. ₹ 13,00,000
2. ₹ 5,00,000
3. ₹ 2,00,000
4. ₹ 12,00,000

✅ Correct Answer: 3

Sales less Cost of goods sold is called :

1. Operating Profit
2. Gross Profit
3. Net Profit
4. Total Profit

✅ Correct Answer: 2

If total assets of a firm are 7 12,00,000 and its non of non-current assets to total assets ?

1. 50%
2. 75%
3. 25%
4. 80%

✅ Correct Answer: 2

If total assets of a firm are 7 10,00,000 and its non-current assets are 7 6,00,000, what will be the percentage of current assets on total assets ?

1. 60%
2. 50%
3. 40%
4. 30%

✅ Correct Answer: 3

In a common-size Balance Sheet, total equity and liabilities are assumed to be equal to :

1. 1,000
2. 100
3. 10
4. 1

✅ Correct Answer: 2

Break-even point refers to that point where :

1. Total Costs are more than Total Sales
2. Total Costs are less than Total Sales
3. Total Costs are half of the Total Sales
4. Total Cost are equal to total sales

✅ Correct Answer: 4

Payment of Income Tax is considered as :

1. Direct Expenses
2. Indirect Expenses
3. Operating Expenses
4. None of these

✅ Correct Answer: 2

Financial analysis is useful:

1. For Investors
2. For Shareholders
3. For Debenture holders
4. All the above

✅ Correct Answer: 4

Analysis of financial statements involve :

1. Trading A/c
2. Profit & Loss statement
3. Balance Sheet
4. All the above

✅ Correct Answer: 4

Financial analysis is significant because it:

1. Ignores qualitative aspect
2. Judges operational efficiency
3. Suffers from the limitations of financial statements
4. It is affected by personal ability and bias of the analysis

✅ Correct Answer: 2

What is shown by the Income Statement ?

1. Accuracy of books of accounts
2. Profit or loss of a certain period
3. Balance of Cash Book
4. None of these

✅ Correct Answer: 2

What is shown by Balance Sheet ?

1. Accuracy of books of accounts
2. Profit or loss of a specific period
3. Financial position on a specific date
4. None of the above

✅ Correct Answer: 3

Which of the following is the purpose or objective of financial analysis ?

1. To assess the current profitability of the firm
2. To measure the solvency of the firm
3. To assess the short-term and long-term liquidity position of the firm
4. All the above

✅ Correct Answer: 4

Out of the following which parties are interested in financial statements ?

1. Managers
2. Financial Institutions
3. Creditors
4. All the these

✅ Correct Answer: 4

Which of the following is not a limitations of financial statement analysis ?

1. To measure the financial strength
2. Affected by window-dressing
3. Do not reflect changes in price level
4. Lack of Qualitative Analysis

✅ Correct Answer: 1

Break-even Analysis shows:

1. Relationship between cost and sales
2. Relationship between production and purchases
3. Relationship between cost and revenue
4. None of these

✅ Correct Answer: 1

Which of the following shows the actual financial position of n enterprise ?

1. Fund Flow
2. Balance Sheet
3. P & L A/c
4. Ratio Analysis

✅ Correct Answer: 2

The financial statements of a business enterprise include:

1. Balance Sheet
2. Profit & Loss Account
3. Cash Flow Statement
4. All the above

✅ Correct Answer: 4

An annual report is issued by company to its :

1. Directors
2. Auditors
3. Shareholders
4. Management

✅ Correct Answer: 3

Balance Sheet provides information about financial position of the enterprise :

1. At a Point of Time
2. Over a Period of Time
3. For a Period of Time
4. None of the above

✅ Correct Answer: 1

Profit & Loss Account is also called :

1. Balance Sheet
2. Income Statements
3. Operating Profit
4. Investment

✅ Correct Answer: 2

Which of the following statement is correct ?

1. Assets = Liabilities + Shareholders funds
2. Assets = Total funds
3. Assets = Funds of outsiders .
4. None of the above

✅ Correct Answer: 1

In which meeting of company directors report is presented ?

1. Directors Meeting
2. Annual General Meeting
3. Manager’s Meeting
4. All of the above

✅ Correct Answer: 2

On the basis of process, which of the following is the type of financial analysis ?

1. Horizontal Analysis
2. Vertical Analysis
3. Ratio Analysis
4. (a) and (b) both

✅ Correct Answer: 4