Top 250+ Solved Analysis of Financial Statements MCQ Questions Answer
Q. Business finance includes........
a. procurement of funds and utilization of funds
b. management of funds
c. allocation
d. insurance
Q. Funds are required for the..........
a. purchase of land & building
b. purchase of machinery
c. purchase of another fixed asset
d. all of the above
Q. Which report gives a review on the profitability of a business?
a. statement of changes in equity
b. cash flow statement
c. balance sheet
d. income statement
Q. The term ‘Financial Statement’ covers
a. profit & loss statement
b. balance sheet and profit & loss statement appropriation account
c. profit & loss statement and balance sheet
d. all of above are false
Q. Which of the following is true about financial statements?A) Financial statement gives a summary of accounts. B) Financial statements can be stated asrecorded facts.
a. only a
b. only b
c. both a and b
d. none of the above
Q. P&L statement is also known as
a. statement of operations
b. statement of income
c. statement of earnings
d. all of the above
Q. Which statement shows the flow of cash and cash equivalents during the financial period?
a. statement of changes in equity
b. cash flow statement
c. balance sheet
d. income statement
Q. Subtracting all expenses from revenues yields?
a. net profit / net loss
b. carrying value
c. long term assets
d. net liabilities
Q. Balance sheet of a company is required to be prepared in the format given in ………………………
a. schedule iii part ii
b. schedule iii part i
c. schedule iii part iii
d. table a
Q. As per Companies Act, the Balance Sheet of a company is required to be presented in ………………………
a. horizontal form
b. vertical form
c. either horizontal or vertical form
d. neither of the above
Q. Which of the following is not required to be prepared under the Companies Act?
a. statement of profit and loss
b. balance sheet
c. report of director’s and auditor’s
d. funds flow statement
Q. According to prescribed order of assets in a Company’s Balance Sheet ……………………… assets shouldbe shown first of all.
a. non-current assets
b. current assets
c. current investments
d. loans and advances
Q. Calls in Arrears appear in a Company’s Balance Sheet under ………………..
a. reserve & surplus
b. shareholder’s funds
c. contingent liabilities
d. short-term borrowings
Q. Calls in advance appear in a Company’s Balance Sheet under ………………..
a. share capital
b. current liability
c. long-term borrowings
d. reserve & surplus
Q. Bills Receivables appear in a Company’s Balance Sheet under the Sub-head ……………………..
a. current investments
b. cash equivalents
c. trade receivables
d. short term loans and advances