Chapter: Company Final Accounts
1.

The form of balance sheet is………………..

A. Vertical
B. Horizontal
C. Horizontal and vertical
D. None of the above
Answer» C. Horizontal and vertical
2.

The term current asset doesn’t cover

A. Car
B. Debtors
C. Stock
D. Prepaid expenses
Answer» A. Car
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. Statement of income
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
C. Both I andII
D. None of the above
Answer» C. Both I andII
5.

The statement of financial position and the balance sheet are synonyms

A. True
B. False
C. none
D. none
Answer» A. True
6.

Which of the following statements are true? I) Financial statements are only interim report. II) Financial statements are also known as annual records. III) Financial statements are historic.

A. Both I and II
B. Both I and III
C. Both II and III
D. I, II, III
Answer» C. Both II and III
7.

Certain assumptions are essential to prepare financial statements.

A. True
B. False
C. none
D. none
Answer» A. True
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
D. for distribution of dividend.
Answer» D. for distribution of dividend.
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
Answer» C. Certificate of commencement of business
10.

Trade Payables are recorded in………………….

A. Current Liabilities
B. Current Assets
C. Equity
D. Inventories
Answer» A. Current Liabilities
11.

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

A. Current Liabilities
B. Current Assets
C. Fixed Assets
D. Inventories
Answer» C. Fixed Assets
12.

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

A. Profit
B. Reserves
C. Loss
D. Income
Answer» A. Profit
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. Interim Dividend
14.

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

A. Liability
B. Assets
C. Credit
D. Debit
Answer» A. Liability
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. Contingent liabilities
16.

Unquoted shares means……………………….

A. Listed Shares
B. Quoted Shares
C. Unquoted Shares
D. Unlisted Shares
Answer» D. Unlisted Shares
17.

Bills receivable is ……………………..assets.

A. Current
B. Non - current
C. Fixed Assets
D. Investment
Answer» A. Current
18.

The amount of profit kept a side to maintain uniform rate of dividend is called………………

A. Ex Dividend
B. Final Dividend
C. Undistributed Dividend
D. Dividend
Answer» C. Undistributed Dividend
19.

Director’s remuneration shall not exceed ………………. % of the net profits.

A. 10%
B. 20%
C. 15%
D. 13.333%
Answer» A. 10%
Tags
Question and answers in Company Final Accounts, Company Final Accounts multiple choice questions and answers, Company Final Accounts Important MCQs, Solved MCQs for Company Final Accounts, Company Final Accounts MCQs with answers PDF download