ICSE XII MCQ Quiz Hub

1. Share capital is shown in Balance Sheet under. the head ?
Authorised Capital
Issued Capital
Paid-up Capital
Shareholders’ Funds

2. The prescribe from the Balance Sheet has given in the Schedule:
VI Part I
VI Part II
III Part I
VII Part IV

3. Which Section of the Companies Act, 2013 requires that the Balance Sheet to be prepared in prescribed form ?
Section 128
Section 130
Section 129
Section 212

4. Amount set aside to meet losses due to bad debts is called:
Reserve
Provision
Liability
None of these

5. Divident is usually paid :
On Authorised Capital
On Ussued Capital
On Paid-up Capital
On Called-up Capital

6. Debentures are shown in the Balance Sheet under the head of:
Short-term Loan
Secured Loan
Current Liability
Share Capital

7. Securities Premium Account is shown on the liabilities side in the Balance Sheet Under heading
Reserves and Surplus
Current Liabilities and Provisions
Share Capital
Contingent Liabilities

8. Which of the following assets is not shown undeer the head ‘Fixed Asset’ in the Balance Sheet ?
Goodwill
Bills Receivable
Buildings
Vehicle

9. The form of Balance Sheet as per Companies Act, 2013 is:
Horizontal
Horizontal or Vertical
Vertical
None of these

10. Goodwill of a company is shown on the assets side of the Balance Sheet under the head.
Current Assets
Non-current Assets
Miscellaneous Expenditure
None of these

11. Interpretation of Financial Statements includes:
Criticisms and Analysis
Comparison and Trend Study
Drawing Conclusion
All the above

12. Horizontal Analysis is also known as :
Dynamic Analysis
Structural Analysis
Static Analysis
None of these

13. Vertical Analysis is also known as :
Static Analysis
Dynamic Analysis
Structural Analysis
None of these

14. Comparative Statements are also known as :
Dynamic Analysis
Horizontal Analysis
Vertical Analysis
External Analysis

15. Common-size Statement are also known as:
Dynamic Analysis
Horizontal Analysis
Vertical Analysis
External Analysis

16. The most commonly used tools for financial analysis are:
Comparative Statements
Common-size Statement
Accounting Ratios
All the above

17. The analysis of financial statement by a shareholder is an example of:
External Analysis
Internal Analysis
Vertical Analysis
Horizontal Analysis

18. For calculating trend percentages any year is selected as:
Current year
Previous year
Base year
None of these

19. Tools for comparison of financial statements are :
Comparative Balance Sheet
Comparative Income Statement
Common-size Statement
All the above

20. Trend ratios and trend percentage are used in :
Dynamic analysis
Static analysis
Horizontal analysis
Vertical Analysis

21. Comparative Financial Statements show:
Financial position of a concern
Earning capacity of a concern
Both of them
None of these

22. Comparative financial analysis process shows the comparison between the items of which statement:
Balance Sheet
Profit & Loss Statement
(a) and (b) both
None of these

23. Which of these are not the method of financial statement analysis ?
Ratio Analysis
Comparative Analysis
Trend Analysis
Capitalisation Method

24. Common-size financial statements are mostly prepared:
In proportion
In percentage
(a) and (b) both
None of these

25. Tangible assets of company increased from T 4,00,000 to T 5,00,000. What is the percentage of change ?
20%
25%
33%
50%

26. 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 ?
100%
25%
50%
33.3%

27. 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:
₹ 13,00,000
₹ 5,00,000
₹ 2,00,000
₹ 12,00,000

28. Sales less Cost of goods sold is called :
Operating Profit
Gross Profit
Net Profit
Total Profit

29. If total assets of a firm are 7 12,00,000 and its non of non-current assets to total assets ?
50%
75%
25%
80%

30. 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 ?
60%
50%
40%
30%

31. In a common-size Balance Sheet, total equity and liabilities are assumed to be equal to :
1,000
100
10
1

32. Break-even point refers to that point where :
Total Costs are more than Total Sales
Total Costs are less than Total Sales
Total Costs are half of the Total Sales
Total Cost are equal to total sales

33. Payment of Income Tax is considered as :
Direct Expenses
Indirect Expenses
Operating Expenses
None of these

34. Financial analysis is useful:
For Investors
For Shareholders
For Debenture holders
All the above

35. Analysis of financial statements involve :
Trading A/c
Profit & Loss statement
Balance Sheet
All the above

36. Financial analysis is significant because it:
Ignores qualitative aspect
Judges operational efficiency
Suffers from the limitations of financial statements
It is affected by personal ability and bias of the analysis

37. What is shown by the Income Statement ?
Accuracy of books of accounts
Profit or loss of a certain period
Balance of Cash Book
None of these

38. What is shown by Balance Sheet ?
Accuracy of books of accounts
Profit or loss of a specific period
Financial position on a specific date
None of the above

39. Which of the following is the purpose or objective of financial analysis ?
To assess the current profitability of the firm
To measure the solvency of the firm
To assess the short-term and long-term liquidity position of the firm
All the above

40. Out of the following which parties are interested in financial statements ?
Managers
Financial Institutions
Creditors
All the these

41. Which of the following is not a limitations of financial statement analysis ?
To measure the financial strength
Affected by window-dressing
Do not reflect changes in price level
Lack of Qualitative Analysis

42. Break-even Analysis shows:
Relationship between cost and sales
Relationship between production and purchases
Relationship between cost and revenue
None of these

43. Which of the following shows the actual financial position of n enterprise ?
Fund Flow
Balance Sheet
P & L A/c
Ratio Analysis

44. The financial statements of a business enterprise include:
Balance Sheet
Profit & Loss Account
Cash Flow Statement
All the above

45. An annual report is issued by company to its :
Directors
Auditors
Shareholders
Management

46. Balance Sheet provides information about financial position of the enterprise :
At a Point of Time
Over a Period of Time
For a Period of Time
None of the above

47. Profit & Loss Account is also called :
Balance Sheet
Income Statements
Operating Profit
Investment

48. Which of the following statement is correct ?
Assets = Liabilities + Shareholders funds
Assets = Total funds
Assets = Funds of outsiders .
None of the above

49. In which meeting of company directors report is presented ?
Directors Meeting
Annual General Meeting
Manager’s Meeting
All of the above

50. On the basis of process, which of the following is the type of financial analysis ?
Horizontal Analysis
Vertical Analysis
Ratio Analysis
(a) and (b) both