FINANCIAL STATEMENTS OF A COMPANY lorem Question. 1 ice Sheet provides information about financial position of an enterprise: (a) over a period of time (b) During a period of time (c) For a period of time (d) Ata point of time (CBSE) - Question. 2 mse Tools appear in the company's Balance Sheet under the head/sub-head: (a Inventories (b) Non-current Assets (Other Current Assets (d) Stores and Spare Parts {CBSE} Question. 3 callsin-Advance is shown in the company's Balance Sheet under the head: (a) Non-current Assets (b) Current Liabilities (o Shareholders Funds (d) Non-current Liabilities [CBSE] Question. 4 sper Schedule III, Part I of the Companies Act 2013, "Unpaid Dividend! will be presented under which of te following head/sub-head, in the Balance Sheet of a company? (a) Reserves and Surplus (@) Current Liabilities (@ Shareholders Funds (@ Contingent Liabilities [CBSE] Question. 5 — Which of the following is not presented under ‘Current Liabilities’ in the Balance Sheet of a Company? (@) Short-term Borrowings (b) Trade Payables (© Short-term Provision (d) Deferred Tax Liabilities [CBSE] Question. 6 ET TETITEEEEEEEEEEEEEEEEEEEenee! Which of the following is not a sub-head under the Current Assets? (@) Cash and Cash Equivalents (6) Trademarks (¢) Short-term loans and advances @ Inventories 6.4ee > 62 VINESH Target Utimate Account, a Share Forfelture Account is the part of: (a) Reserves and Surplus (6) Share Capital (©) Other long-term liabilit (oy Ofer Curent Libis CBSE agg, ies acces Eee Question. 8 fees Ss eee eee eee eee pet ‘Which of the following is considered as a Fixed Tangible Assets: (@) Capital Advances (b) Capital work in progress (6) Provision for Warranties (ay Income received in advance (CBSE Magi Question. 9 OO A set of Financial Statements as per Section 2(40) of the Companies Act, 2013 does not include: (a) Balance Sheet (b) Profit and Loss Account (©) Notes to Accounts (d) Ratio Analysis Question. 10 —— Share Capital does not include: (a) Shares issued through private placement (b) Shares issued for consideration other than cay (c) Shares issued to Promoters in cash payment (@ Calls in Arrear amount on Shares Question. 11 ————— Which of the following is a fixed intangible asset? (a) Photocopier (b) Printer for office use (c) Computers (d) Mastheads and publishing titles Question. 12 SENT SSS ee Creditors and Bills payable are shown under the head: (@ Provisions (©) Other current liabilities (©) Current Assets (@) Trade payables Question. 13 a Securities Premium Reserve is shown under: (@) Short-term Provisions (6) Reserves and Surplus (o) Current Liabilities (@) Share Capital Question. 14 Seen eee Goodwill is (a) Fictitious Asset (©) Fixed Intangible Asset (@ None of these (©) Current Asset63 eancial Statements of a Company Question. 15 — oo jna company's Balance Sheet Assets are shown in the order of : an (a) Permanence (6) Liquidity (c) Market Value (d) None of these Question. 16 Claim against the company not yet acknowledged as debt, is a: : (a) Current Liability (o) Reserve and Surplus(d) Contingent Liability Question. 17 = — eos Which of the following is not shown under t (b) Provisions, : the heading of Reserves and Surplus? (Dinan bomen (b) Securities Premium Reserve (c) Capital Redemption Reserve (d) Bills of Exchange Question. 18 oa eee Identify the correct statement: (a) Bank overdraft is a long term borrowing (b) Prepaid expenses are shown under other current assets (©) Debentures issued are current liability (d) Dividend is paid on debentures Question. 19 a Which of the following is not shown under the heads of Reserves and Surplus: (a) Shares options outstanding (b) Loss shown by Statement of Profit and Loss (c) Revaluation Reserve (@) Debentures Redemption Investment Question. 20 ee Which of the following is not part of Capital Reserve? (a) Gain on Sale of Non-current Investment (©) Gain on reissue of forfeited shares (®) Gain on Sale of Current Investment (d) Gain on Sale of goods and Service Question. 21 $$ ‘Which of the following will be correctly associated with this statement, "Company Purchases its own shares": (a) Capital Reserve (®) Revaluation Reserve (c) Capital Redemption Reserve (@ Share option outstanding account Question. 22 ee ‘The Market price of a share is Rs.68 but itis to be issued to employees at Rs.50. The difference of Rs.18 will be transferred to : (@) Capital Reserve (b) Share options outstanding account (c) Securities Premium Reserve (@) Revaluation ReserveEERE 7 64 VINESH Target Uttmate Accountang, % Question. 23 _ ‘When some part of profit is transferred to the Debenture Redemption Reserv “rho compensation reserve etc. It is called: (a) Revaluation process (©) Creation of (©) Appropriation of Profit 1 Share Application MONEY PENNE allogny, Contingent Reserve Question. 24 EEE EEE EEE ——— Which of the following can be converted into Equity Share Capital? (@) Share Warrant (b) Revaluation Reserve (@) Capital Redemption Reserve (@ Securities Premium Reserve Question. 25 If application money is received before the date of the Balance Sheet but shares are allotted after the Balan, Sheet date, it is recorded as: terse eee (b Application money pending allotment (@) Calls in Arrears (d) Reserve Capital Question. 26 ____ is the time between the acquisition of an asset for processing and its rea jisation into cash and cx equivalents. (a) Quarterly Result (0) Half yearly result (© Operating Cycle Question. 27 Be = 7 Public Deposits with the company are shown under: (@) Current Liabilities (b) Non-current Liabilities (c) Contingent Liabilities (d) Current Assets Question. 28 a e Debentures ready for maturity are shown under: (@ Long Term Borrowings (©) Short Term Borrowings (c) Trade Payables (@ Other Current Liabilities Question. 29 ee If Debentures are shown as Long-term Borrowings, then Premium payable on redemption of debenture, (@) Notes to Accouns, be shown under: (a) Ocher Long term liabilities (©) Other Current Liabilities (c) Trade Payable (@ Long-term Borrowings Question. 30 a Bank overdraft and Cash Credit shown under: (a) Cash and Cash Equivalents (© Trade Payablesv ghort-term Borrowings ts of a Company statements 65 (@) Long-term Borrowings _ Question. 31 received in advance will be shown under: Provisions (a) Short term tana (b) Other Current Liabilities iq) Short-term (d) Trade Payables 7 Question. 32 repayable on demand will be shown under: Long-term Borrowings (a) Lan reat Lilies (b) Cash and Cash Equivalents (01 (d) Short-term Borrowings Question. 33 alls in advance on shares will be shown under (a) Long-term Borrowings (b) Other Current Assets (c) Other Current Liabilities (d) Short-term Borrowings Question. 34 Security Deposit paid by the Company for a new telephone connection (including internet broadband comection) will be shown under: (a) Long term loans and advances (b) Short-term loans and advances (c) Other Non-current Assets (d) Other Non-current Liabilities Question. 35 ————— — — — — Intangible assets under development does not include: (a) Software under development (6) Intellectual property rights under process (©) Patents under process (d) Building under construction (not completed yet) Question. 36 Insurance Premium of Rs.60,000 paid by company in advance. It will be shown under: (a) Long term loans and advances (b) Short-term loans and advances (c) Other Non-current Assets (d) Other current assets Question. 37 Office Building is under construction and it may take 3-4 years for completion, it will be shown under: (a) will not be shown in Balance Sheet (b) Intangible assets under development (c) work in progress @) Capital work in progress Question. 38 Se Which of the following is not part of Fixed Intangible Asset: (@) Brand/Trademark (6) Recipe and Formula _—(c) Stores and Spares (d) Prototypeeee eeeea eee OY VINESH Target Ultimate Accouna,. ‘ a of the following is not part of the inventorie {a) Loose Tools (b) Stores and Spares Question. 40 (c) Work in progress Goods sold for Rs.20,000 and received a cheque for the same, will be show’ under: (a) Inventories {b) Trade Receivables (c) Other Current Assets (a) Cash and Cash Equivalents Question. 41 Commission is Accrued Rs.2,000, it will be shown under: (a) Cash and Cash Equivalents (c) Other Current Liabilities advances (p) Short-term loans and (d) Other Current Assets aw —___ Question. a2 Investment made in Debentures by the company will be shown under: (@) Current Investment (b) Non-current investment (©) Long-term Borrowings (d) Short-term Borrowings Interest Accrued but not due on loans is shown in the company's balance sheet under: (a) Other Current Liabilities (b) Non-current investment (©) Long-term Borrowings (d) Short-term loans and advances Question. 44 ‘A company has invested in Debentures of other company but interest is not received yet, it is to (a) Long-term Borrowings (6) Short-term Borrowings (c) Other current Liabilities (@ Other Current Assets Question. 45 a Which of the following is not part of the Short-term Prov (@) Provision for Tax (c) Provision for Expenses (b) Provision for Doubtful Debis (@ Provision for Gratuity of employees Question. 46 Match the followings: 1 Trademarks A Tangible fixed asset B Current Asset 2 Furniture 3 Cash In hand C Intangible asset A 4 Work in progress D Cash & cash equivalents _J (a) 1-C; 2-A; 3-D; 4-B (b) 1-C; 2-A; 3-B; 4-D -D (@) 1-A; 2-B; 3-D; 4-C (c) eA: 2-€;> statements of Company 67 on Question. 47 Aan Soamee SEPP Ee Eee 7 Patents ‘A Tangible fixed asset 7 Computer and Laptops B Long term borrowing 7 10% Debentures eet C Intangible assets [7 Debenture ‘with maturity period in current D Other Current liability financial year (b) 1-C; 2-A; 3-B; 4-D Fret the followings: [1 investment in debentures A Non-Current Investment 2 Trade payable B Non-current liability [3 Raw material C Current liability 7 10% Debentures issued D Current Asset (@) 1-C; 2-A; 3-D: 4-B @) 1 (o) I-A; 2-C; 3-B; 4-D @ Question. 49 Match the followings: 1 Debtors ‘A Cash & cash equivalents 2 Bank balance B Other current asset 3 Prepaid insurance C Intangible asset 4 Mastheads and Publis D Trade receivable (@) 1-C; 2-A; 3-D; 4-B (B) 1-D; 2-A; 3-B; 4-C (0) 1-A; 2-C; 3-B: 4-D @ 1-A; 2-C; 3-D; 4-B Question. 50 Match the followit | __1 Proposed Dividend ‘A Other Current liability 2 Unpaid Dividend B_Long term provision 3 Public Deposit C Contingent liability in notes to accounts 4 Provision for Provident Fund D_ Long term borrowings @ 1-C; 2-A; 3-D; 4-B (&) 1-D; 2-A; 3-B; 4-C (c) 1-A; 2-C; 3-B; 4-D (d) 1-C; 2-A; 3-B; 4-D68 1 Goodwitt 2 Unelaimed dividend VINESH Targot Ultimate Acg Untangy, uestion. 51 Q Mateh the followings ‘A Inventories B_ Short term borrowing 3 Bank overdraft © Other Current liability + Loose tools D_ Fixed Intangibleasset (a) 1-C; 2., (©) 1D: 2-0; 3-8; 4A (b) 1-D; 2-A; 3-By 4 (d) 1-A; 2-C; 3D; 4-B Q uestion. 52 Match the followings 1 Money received against share warrant 2 Deferred tax liability A Non-current liability B Fixed Intangible 3 Deferred tax asset C Shareholders fund 4 Computer software D Non-curret (a) 1-C; 2-A; 3-D; 4-B (©) 1-D; 2-C; 3-B; 4-A Match the followings Question. 53 1 Interest due on calls in advance ‘A Other current liability 2 Interest duc on calls in arrear B Other non-current liability 3 Employees Provident fund C Other current asset 4 Premium on redemption on debenture D Long term provision (a) LC) 2A; 3-D; 4B fe) 1D, 2-0; 2B, 4A Match the followings: Public deposits A Employee benefit expense B Other income C Revenue from operation D Finance cost ned (a) 1-C, DAL ED. 4B fe) LC, 2D. VB. A (b) LD: 2-4; 3-B; 4-C LAnancial Statements of a Company 69 Question. 55 catch the followings: 7 Bonus paid Revenue from operation | J Revenue from service rendered A B Finance cost C 15 imerest expense Depreciation and amortization expense | 4 Goodwill amortised D_ Employee benefit expense (@ 1-C: 2-A: 3-D: 4-8 (0) 1D: 2-C: 3-B: 4-8 o @ pues Question. 56 Capital Reserve is always comes out fro1 pital Re m the revenue oro: - Question. 57 Current liabilities are payable within 3 months: (a) True (b) False : Question. 58 Balance of share forfeiture account is to be deducted from the share capital: (@ True (b) False Question. 59 ‘Securities premium is to be shown under the head Reserve & surplus: (@ True () False Question. 60 ‘A company'sBalance Sheet is to be prepared in a vertical form: (@ True © False Question. 61 Match the following : 1 Trade Receivables with Operating Cycle of 20 Months and Expected Realisation Period is 15 months operating cycle of 10 months and A Non-current Assets 2 Trade Payables with B Current Liabilities Expected period of payment is 15 months 3 Trade Receivables with Operating Cycle of 11 Month: Expected Realisation Period is 15 months ‘ing cycle of 18 months and D Current Assets is and. C Non-current Liabi 4 Trade Payables with operat Expected period of payment is 15 monthsItimate Ac 6.10 VINESH Target Ultimate Accountangy 3A;4B 3 2C: (@) 1D; 2C; 3B; 4A (b) 1D: c.4B (1D; 2B: 3A; 4c (@ 1D; 2A 3 uestion. 62 re oS OES atch the following: ‘A. Short-term Provisions 1 Non-Current Assets d Ad and Advances 2 Current Assets B Long-term Loans 3 Current Liabilities C Long-term Provisions 4 Non-Current Liabilities D_Trade Receivables @ 1B;2D;3C;4A ( 1B:2C;3A:4D (@) 1B;2C;3D;4A @ 1B;2D;3 c sertion & Reason Based Questions Question. 63 eee Assertion (A) While preparing Notes to Accounts on Share Capital, Calls-in-Arrears is shown by way of deduction from thy Subscribed Capital (Subscribed but not fully paid-up) Reason (R) : As per the Companies Act, 2013, Part 1 of the Schedule Ll, Calls in Arrears is the other current asset of the company. Choose the Correct Option from the following: (a) Assertion and Reason both are correct and Reason is the correct explanation of assertion () Assertion and Reason both are correct but Reason is not correct explanation of assertion (c) Only Assertion is correct. @ Reason is correct but Assertion is not correct Question. 64 ———— ‘Assertion (A): Amount received in advance by a company, on calls not yet made should be shown in the Balance Sheet under Other Current Liabilities. It is called ‘Calls-in-Advance’. Reason (R) : Company may receive amount against calls not yet made only if its Articles of Association permits. Choose the Correct Option from the following : (a) Assertion and Reason both are correct and Reason is the correct explanation of assertion (b) Assertion and Reason both are correct but Reason is not correct explanation of assertion (c) Only Assertion is correct. (@) Reason is correct but Assertion is not correct