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Chapter: Company Final Accounts (Set-1) : Corporate Accounting

This document contains 19 multiple choice questions about company final accounts in corporate accounting. The questions cover topics such as the format of balance sheets, definitions of terms like current assets and profit and loss statements, characteristics of financial statements, recording of items like dividends and goodwill, and limits on director's remuneration. The questions are part of an online practice test to help students learn about preparing and understanding company final financial statements.

Uploaded by

Vashu Katiyar
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© © All Rights Reserved
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496 views6 pages

Chapter: Company Final Accounts (Set-1) : Corporate Accounting

This document contains 19 multiple choice questions about company final accounts in corporate accounting. The questions cover topics such as the format of balance sheets, definitions of terms like current assets and profit and loss statements, characteristics of financial statements, recording of items like dividends and goodwill, and limits on director's remuneration. The questions are part of an online practice test to help students learn about preparing and understanding company final financial statements.

Uploaded by

Vashu Katiyar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Company Final Accounts (in Corporate Accounting) MCQs set 1

Corporate Accounting

Chapter: Company Final Accounts [set-1]

1. The form of balance sheet is………………..


A. Vertical

B. Horizontal

C. Horizontal and vertical


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D. None of the above

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Answer: C
a
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2. The term current asset doesn’t cover M
A. Car c
B. Debtors
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C. Stock

D. Prepaid expenses

Answer: A

3. P&L statement is also known as


A. Statement of operations

B. Statement of income

C. Statement of earnings

D. All of the above

Answer: B

4. Which of the following is true about financial statements? I)Financial


statement gives a summary of accounts. II) Financial statements can be
stated as recorded facts.
A. Only I

B. Only II

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Company Final Accounts (in Corporate Accounting) MCQs set 1

C. Both I andII

D. None of the above

Answer: C

5. The statement of financial position and the balance sheet are synonyms
A. True

B. False

C. none

D. none
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Answer: A .c
tetrue? I) Financial statements are
6. Which of the following statements are
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records. III) Financial statements
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only interim report. II) Financial statements are also known as annual
are historic.
c
A. Both I and II

B. Both I and III


M
C. Both II and III

D. I, II, III

Answer: C

7. Certain assumptions are essential to prepare financial statements.


A. True

B. False

C. none

D. none

Answer: A

8. Premium received on issue of shares cannot be utilised for ---------.


A. for the issue of bonus shares .

B. for writing of preliminary expenses

C. for providing premium payable on redemption

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Company Final Accounts (in Corporate Accounting) MCQs set 1

D. for distribution of dividend.

Answer: D

9. In case of public limited company, after getting the-----------the company


can start the business
A. Memorandum of Association

B. Table A

C. Certificate of commencement of business

D. Articles of Association
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Answer: C
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10. Trade Payables are recorded in………………….
a
A. Current Liabilities
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B. Current Assets
c
C. Equity M
D. Inventories

Answer: A

11. In company Final Accounts Goodwill is shown under……………


A. Current Liabilities

B. Current Assets

C. Fixed Assets

D. Inventories

Answer: A

12. Dividend is payable on the amount of…………………………..


A. Profit

B. Reserves

C. Loss

D. Income

Answer: A

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Company Final Accounts (in Corporate Accounting) MCQs set 1

13. The dividend paid between two annual general meeting is known
a……………………….
A. Final dividend

B. Ex Dividend

C. Interim Dividend

D. Dividend

Answer: C

14. Unclaimed dividend recorded on the…………………….. the balance


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sheet.
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A. Liability
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B. Assets

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C. Credit
c
D. Debit

Answer: A
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15. A liability which can be measured only by using a substantial degree of
estimation is called……………………….
A. Contingent liabilities

B. Contingent Assets

C. Fixed Assets

D. Non Current Liabilities

Answer: A

16. Unquoted shares means……………………….


A. Listed Shares

B. Quoted Shares

C. Unquoted Shares

D. Unlisted Shares

Answer: D

17. Bills receivable is ……………………..assets.

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Company Final Accounts (in Corporate Accounting) MCQs set 1

A. Current

B. Non - current

C. Fixed Assets

D. Investment

Answer: A

18. The amount of profit kept a side to maintain uniform rate of dividend is
called………………
A. Ex Dividend
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B. Final Dividend
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C. Undistributed Dividend
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a
D. Dividend

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Answer: C
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19. Director’s remuneration shall not exceed ………………. % of the net
profits.
A. 10%

B. 20%

C. 15%

D. 13.333%

Answer: A

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Company Final Accounts (in Corporate Accounting) MCQs set 1

Take Quick Mock/Practice test on this topic HERE

For Discussion / Reporting / Correction of any MCQ please visit discussion page by clicking on
'answer' of respective MCQ.

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a
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c
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