Corporate Accounting MCQ

( Best 20+ ) Company Final Accounts MCQ

Company Final Accounts MCQ

Table of Contents

Company Final Accounts MCQ

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

A. Vertical

B. Horizontal

C. Horizontal and vertical

D. None of the above

2. The term current asset doesn’t cover

A. Car

B. Debtors

C. Stock

D. Prepaid expenses

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

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

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

A. True

B. False

C. none

D. none

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

7. Certain assumptions are essential to prepare financial statements.

A. True

B. False

C. none

D. none

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.

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

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

A. Current Liabilities

B. Current Assets

C. Equity

D. Inventories

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