Online Test — Financial Statements of a Company
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
The statement showing financial position on a date is the:
Statement of Profit and Loss
Balance Sheet
Cash Book
Journal
Explanation: The Balance Sheet shows position on a date.
Question 2 of 15
Company financial statements follow the format in:
Schedule III of the Companies Act, 2013
The GST Act
The Partnership Act
AS-3 only
Explanation: Schedule III prescribes the format.
Question 3 of 15
Share Capital is shown under:
Current Liabilities
Shareholders' Funds
Non-current Assets
Other Income
Explanation: Share Capital is part of Shareholders' Funds.
Question 4 of 15
Securities Premium Reserve appears under:
Reserves and Surplus
Trade payables
Fixed assets
Other income
Explanation: It is part of Reserves and Surplus.
Question 5 of 15
Long-term borrowings are shown under:
Current liabilities
Non-current liabilities
Shareholders' funds
Current assets
Explanation: Long-term borrowings are non-current liabilities.
Question 6 of 15
Trade payables = creditors + :
Bills receivable
Bills payable
Cash
Debtors
Explanation: Trade payables = creditors + bills payable.
Question 7 of 15
Trade receivables = debtors + :
Creditors
Bills receivable
Stock
Cash
Explanation: Trade receivables = debtors + bills receivable.
Question 8 of 15
Goodwill is classified as a:
Current asset
Intangible fixed asset
Current liability
Reserve
Explanation: Goodwill is an intangible fixed (non-current) asset.
Question 9 of 15
Inventories are shown under:
Non-current assets
Current assets
Current liabilities
Reserves
Explanation: Inventories are current assets.
Question 10 of 15
Provision for tax is shown under:
Short-term provisions (current liabilities)
Fixed assets
Reserves
Other income
Explanation: Provision for tax is a short-term provision (current liability).
Question 11 of 15
The first line of the Statement of Profit and Loss is:
Other income
Revenue from operations
Tax
Finance costs
Explanation: It begins with Revenue from Operations.
Question 12 of 15
Interest on borrowings is shown under:
Finance costs
Other income
Employee benefits
Revenue
Explanation: Interest on borrowings is a finance cost.
Question 13 of 15
Salaries and wages are shown under:
Finance costs
Employee benefit expenses
Other income
Revenue
Explanation: They are employee benefit expenses.
Question 14 of 15
Total income less total expenses gives:
Gross profit
Profit before tax
Revenue
Reserves
Explanation: It gives profit before tax.
Question 15 of 15
PBT Rs 8,00,000, tax 30%. Profit after tax =
Rs 5,60,000
Rs 2,40,000
Rs 8,00,000
Rs 6,00,000
Explanation: Tax 2,40,000; PAT = 8,00,000 − 2,40,000 = 5,60,000.