Preparation of Final Accounts of Companies MCQ (Free) | Companies Act 2013

21. Loose tools are shown under ___________ assets.
a) current
b) fixed
c) capital
d) other assets

22. Live stock is shown under __________ assets.
a) investment
b) current assets
c) fixed assets
d) current liabilities

23. Bills receivable is shown under ___________ .
a) current assets
b) loans and advances
c) Trade Receivable
d) current liabilities

24. Arrears of preference dividend is shown under _________ liabilities.
a) contingent liability
b) current liabilities
c) fixed liability
d) none of the above

25. Interest accrued but not due on secured loans is shown under ___________ .
a) current liabilities
b) unsecured loans
c) secured loans
d) none of the above

26. Unclaimed dividend is shown under __________ .
a) current liabilities
b) share capital
c) provisions
d) unsecured loans

27. Profit and Loss of a company must be as per part __________ of schedule III of Companies Act.
a) III
b) IV
c) II
d) VI

28. Repairs to building must be shown as a __________ on debit side of Profit and Loss A/c.
a) addition
b) separate item
c) other expenses
d) none of the above

29. Public deposits accepted by companies must be shown under ___________ .
a) investment
b) secured loans
c) loans & advances
d) unsecured loans

30. Development expenditure is shown under _________.
a) current liabilities
b) fixed assets
c) other Current Assets
d) none of the above

Answer: 21)current 22)fixed 23)Trade Receivable 24)contingent 25)current liabilities 26)current liabilities 27)II 28)separate item 29)unsecured loans 30)Other Current Assets

31. Short term loan is the loan due for not more than _________ year.
a) six
b) five
c) one
d) two

32. Remuneration to MD must be shown as a _________ item in Profit and Loss A/c.
a) Expense
b) separate
c) none of the above

33. Bills Receivable is shown under ___________ in Balance sheet.
a) contingent liability
b) Trade Receivable
c) loans & advances
d) current liabilities

34. Net Block of fixed assets is shown ____________ Balance sheet.
a) vertical
b) Horizontal
c) Schedule of capital
d) none of the above

35. Net Block is Gross Block less _________ .
a) current assets
b) Accumulated depreciation
c) current liabilities
d) none of the above

36. Income tax under dispute is shown under ___________ .
a) current assets
b) current liabilities
c) contingent liability
d) loans & advances

37. Dividend is calculated on __________ capital.
a) paid up
b) Subscribed
c) Uncalled
d) none of the above

38. Accounting policies are prescribed by __________.
a) AS 2
b) AS 6
c) AS 13
d) AS 1

39. Dividend is declared by ___________.
a) directors
b) stock exchange
c) shareholders
d) none of the above

40. Live stock is shown under ___________assets.
a) Fixed
b) investment
c) current assets
d) None of the above

Answer: 31)one 32)separate 33)Trade Receivable 34)vertical 35)Accumulated depreciation 36)contingent liability 37)paid up 38)AS 1 39)shareholders 40)Fixed

41. Land is disclosed under ___________.
a) PPE (Property, Plan and Equipments)
b) investment
c) Other assets
d) none of the above

42. Intellectual property rights are disclosed under ____________ .
a) Other Intangible Assets
b) Tangible assets
c) Other assets
d) None of the above

43. Capital Redemption Reserve is disclosed under ______________ .
a) loans
b) Borrowings
c) Equity
d) Other Equity

44. Debentures are disclosed under __________ .
a) Miscellaneous expenditure
b) Unclaimed dividend
c) Borrowings
d) none of the above

45. Unpaid dividend is disclosed under __________ .
a) Other Financial Liability
b) contingent liabilities
c) reserves and surplus
d) current liabilities

46. Share application money received for allotment to the extent refundable is shown under ___________ .
a) current assets
b) Other Financial Liability
c) current liabilities
d) none of the above

47. Share application money pending allotment is disclosed under ____________ .
a) loans
b) Borrowings
c) other equity
d) Equity

48. The requirements for final account of companies are specified in Schedule ___________.
a) I
b) III
c) XIII
d) XIV

49. The Schedule III prescribes vertical form of Balance Sheet in part __________ .
a) 4
b) 2
c) 3
d) 1

50. The unpaid interest on loan is _____________ .
a) loan
b) current liabilities
c) reserve
d) contingent liabilities

Answer: 41)PPE 42)Other Intangible Assets 43)Other Equity 44)Borrowings 45)Other Financial Liability 46)Other Financial Liability 47)Equity 48)III 49)1 50)Current Liabilities