CBSE Class 12 (Commerce) Financial Statements of a Company — practice questions
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Practice CBSE Class 12 (Commerce) Financial Statements of a Company in the app →The financial statements of a company chiefly comprise the Balance Sheet and the:The Balance Sheet of a company shows its financial:As per Schedule III of the Companies Act, the Balance Sheet is prepared in the:Assets that are expected to be converted into cash within twelve months are classified as:Obligations that are due to be paid within twelve months are classified as:Reserves and surplus of a company are shown under the head:Plant, machinery and buildings of a company are classified as:Trade payables (creditors) of a company are an example of:Inventories and trade receivables of a company are examples of:The statement that shows the revenue earned and expenses incurred to arrive at profit or loss is the:Financial statements are prepared mainly to help ___ make economic decisions:A key limitation of financial statements is that they are generally based on:In a company's Balance Sheet, the total of the 'Equity and Liabilities' side must equal the total of the:Besides the balance sheet and the profit statement, a company prepares aA balance sheet is called a position statement because it showsOn what cost basis are assets shown in company financial statements?Why do statements not show current financial condition?Charging pencils, pens and stamps to expense in the year of purchase follows the convention ofAssets are shown at historical cost because the enterprise is assumed toWhich postulate assumes the value of money stays the same across periods?Revenue is counted in the year of sale even if cash comes later. This is theCharging depreciation by estimating an asset's useful economic life is an example ofA provision for doubtful debts is made mainly onEstimates are made cautiously to avoid overstating assets and income, following the convention ofThe primary objective of financial statements is toInformation useful for judging how well resources were used serves the objective ofReporting policies and changes in them serves the objective ofThe two statements needed for external reporting are theWhich statement tracks the movement of funds and changes in financial position?The format of a company's balance sheet under the Companies Act, 2013 is prescribed inThe Schedule III format does not apply to which company?If an accounting standard conflicts with Schedule III, which one prevails?A company with turnover above Rs 100 crore rounds off figures to the nearestThe prescribed presentation of a company's financial statements is in theA debit balance of profit and loss appears in the balance sheet asUnder Schedule III, the term 'sundry creditors' is replaced byWhich item is shown under shareholders' funds?The securities premium reserve is classified underThe Share Options Outstanding Account is shown as a separate item underThe head 'Surplus' under Reserves and Surplus shows the balance in theIn the Schedule III classification, non-current assets and liabilities are theA liability is current when the entity has no unconditional right to defer settling it for at leastPreliminary expenses should be written off first fromLoans repayable in more than twelve months are shown asLoans repayable on demand are classified asThe part of a long-term loan repayable within twelve months is shown underDeferred tax assets and liabilities are alwaysTrade payables due beyond twelve months or the operating cycle go underProposed dividend is declared by the shareholders at theShareholders can do what to the dividend proposed by directors?Accounting Standard 4 deals with contingencies and events occurring afterA provision settled within twelve months is shown asA fixed asset with a useful life under twelve months is still classified asInventories are always treated asTrade receivables realisable after twelve months are shown underWhich accounting standard governs the meaning of cash and cash equivalents?Forfeited shares are disclosed at the amountShare capital disclosure must name each shareholder holding more thanBonus shares and buy-back details are disclosed for the precedingFor each class of shares, the company discloses shares outstanding atCalls in arrears are shown in the balance sheet as aRs 100 shares have Rs 80 paid before the final call. On forfeiting 200 shares, the forfeiture amount isA final call of Rs 20 is unpaid on 300 shares. Calls in arrears totalIn the profit statement, sale of products and services is shown underFor a finance company, revenue includes interest, dividend andFor a non-finance company, interest income is shown underThe expense head 'cost of materials consumed' applies mainly toPurchase of goods meant for resale is shown underChanges in inventories show the difference between opening stock andStaff welfare and leave encashment are shown underWhich expense is shown under finance costs?An expense that fits no other head is shown underProfit for the period is the sum of continuing profit andWhich use of financial statements reports management's performance to owners?Banks decide on lending after studying a company'sInvestors want security, liquidity and reasonableShareholders use the statements to decide whether to continue orTrade associations use financial statements to develop standardStock brokers use financial statements to decidePrepared on historical cost, financial statements do not reflectBalance sheet assets mostly reflectReliance on personal judgements by accountants can introduceFinancial statements give information that is mostlyWhich matter is not disclosed by the balance sheet?Which information is not reflected in financial statements?A balance sheet position is true only at aCapital work-in-progress appears among theWhich statement reports changes in equity over a stated period?Which statement is a snapshot of a business at one point in time?A cash flow statement groups cash flows into operating, investing andA balance sheet reports assets, liabilities andIn an income statement, revenues are often called theA single step income statement totals revenues and subtracts expenses to findA multi-step income statement starts by calculatingThe last step of a multi-step income statement is to deductCharities publish a statement of ____ instead of an income statement.The two forms of balance sheet are the report form and theBalance sheet items are typically listed in order ofA current item on a balance sheet has a maturity ofApple trees grown to produce apples are an example ofMoney received for services not yet provided is recorded asConsolidated statements present a parent and its subsidiaries asGAAP stands forInternational Financial Reporting Standards are developed by theMD&A in an annual report gives a narrative from the view ofAnother name for the balance sheet is the statement ofLabour unions use financial statements when negotiating