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Class 12 Commerce Financial Statements of a Company — practice questions

Explore 13 free Financial Statements of a Company questions in Class 12 Commerce Accountancy. Open each question or exercise to read its content, reference answers and available explanation.

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Financial Statements of a Company questions and exercises with answers

Showing questions 1–13 of 13.

The financial statements of a company chiefly comprise the Balance Sheet and the:Read the answer and worked solution →The Balance Sheet of a company shows its financial:Read the answer and worked solution →As per Schedule III of the Companies Act, the Balance Sheet is prepared in the:Read the answer and worked solution →Assets that are expected to be converted into cash within twelve months are classified as:Read the answer and worked solution →Obligations that are due to be paid within twelve months are classified as:Read the answer and worked solution →Reserves and surplus of a company are shown under the head:Read the answer and worked solution →Plant, machinery and buildings of a company are classified as:Read the answer and worked solution →Trade payables (creditors) of a company are an example of:Read the answer and worked solution →Inventories and trade receivables of a company are examples of:Read the answer and worked solution →The statement that shows the revenue earned and expenses incurred to arrive at profit or loss is the:Read the answer and worked solution →Financial statements are prepared mainly to help ___ make economic decisions:Read the answer and worked solution →A key limitation of financial statements is that they are generally based on:Read the answer and worked solution →In a company's Balance Sheet, the total of the 'Equity and Liabilities' side must equal the total of the:Read the answer and worked solution →

Worked practice questions

The financial statements of a company chiefly comprise the Balance Sheet and the:

  1. prospectus
  2. Statement of Profit and Loss
  3. cash memo
  4. minutes book
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Correct answer: B. Statement of Profit and Loss

Company financial statements are the Balance Sheet and the Statement of Profit and Loss.

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The Balance Sheet of a company shows its financial:

  1. staff attendance
  2. position at a particular point in time
  3. profit over a whole decade
  4. sales forecast for next year
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Correct answer: B. position at a particular point in time

The Balance Sheet shows financial position at a point in time.

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As per Schedule III of the Companies Act, the Balance Sheet is prepared in the:

  1. vertical (prescribed) format
  2. horizontal T-format only
  3. cash book format
  4. trial balance format
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Correct answer: A. vertical (prescribed) format

Schedule III prescribes the vertical Balance Sheet format.

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