Chapter Exam

Chapter 7: Financial Statements of a Company — Online MCQ Test

Q: Under Schedule III of the Companies Act, 2013, which financial statement is prepared in a vertical format?

Answer: A. Balance Sheet — Schedule III prescribes the vertical format for the Balance Sheet of a company.

Q: The Balance Sheet of a company shows the position of assets and liabilities on:

Answer: B. A particular date — A Balance Sheet is a position statement prepared as on a particular date.

Q: Security deposit paid to an electricity company and recoverable after 3 years will be shown as:

Answer: B. Long-term loans and advances — A security deposit recoverable after more than 12 months is classified as long-term loans and advances under non-current assets.

Q: A company has inventory ₹80,000, cash ₹20,000, machinery ₹5,00,000, trade receivables due in 8 months ₹60,000, and goodwill ₹1,00,000. What is the amount of current assets?

Answer: C. ₹1,60,000 — Current assets include inventory ₹80,000, cash ₹20,000 and trade receivables ₹60,000, totaling ₹1,60,000.

Q: A loan from a director is repayable on demand. In the absence of any agreement for repayment after 12 months, it should be classified as:

Answer: C. Short-term borrowings — A borrowing repayable on demand is treated as a current liability and shown under short-term borrowings.

ACCOUNTANCY · Grade 12 · CBSE(NCERT)

Practice Chapter 7: Financial Statements of a Company with a free chapter-wise online MCQ test for CBSE(NCERT) Grade 12 ACCOUNTANCY. This chapter covers: Financial Statements Schedule III Companies Act 2013 Balance Sheet Statement of Profit and Loss Shareholders Funds Non Current Liabilities Current Liabilities Non Current Assets Cu.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 7: Financial Statements of a Company — Important Questions & Answers (FAQ)

Frequently asked questions from CBSE(NCERT) Grade 12 ACCOUNTANCY — Chapter 7: Financial Statements of a Company, with answers and explanations. These are sample questions; the exam has its own separate question set.

Under Schedule III of the Companies Act, 2013, which financial statement is prepared in a vertical format?

A. Balance Sheet ✓
B. Cash Book
C. Trial Balance
D. Journal

Answer: A. Balance Sheet
Schedule III prescribes the vertical format for the Balance Sheet of a company.

The Balance Sheet of a company shows the position of assets and liabilities on:

A. The first day of the accounting year
B. A particular date ✓
C. The date of incorporation only
D. The date of purchase of assets

Answer: B. A particular date
A Balance Sheet is a position statement prepared as on a particular date.

Security deposit paid to an electricity company and recoverable after 3 years will be shown as:

A. Cash and cash equivalents
B. Long-term loans and advances ✓
C. Short-term provisions
D. Current investments

Answer: B. Long-term loans and advances
A security deposit recoverable after more than 12 months is classified as long-term loans and advances under non-current assets.

A company has inventory ₹80,000, cash ₹20,000, machinery ₹5,00,000, trade receivables due in 8 months ₹60,000, and goodwill ₹1,00,000. What is the amount of current assets?