{"id":6652,"date":"2021-09-22T13:03:32","date_gmt":"2021-09-22T07:33:32","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=6652"},"modified":"2025-10-07T20:24:55","modified_gmt":"2025-10-07T14:54:55","slug":"preparation-of-final-accounts-of-companies-mcq","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/preparation-of-final-accounts-of-companies-mcq\/","title":{"rendered":"Preparation of Final Accounts of Companies MCQ (Free) | Companies Act 2013"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\"><strong>Preparation of Final Accounts of Companies<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Preparation-of-Final-Accounts-of-Companies-1024x576.jpg\" alt=\"Preparation of Final Accounts of Companies\" class=\"wp-image-6889 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Preparation-of-Final-Accounts-of-Companies-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Preparation-of-Final-Accounts-of-Companies-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Preparation-of-Final-Accounts-of-Companies-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Preparation-of-Final-Accounts-of-Companies-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Preparation-of-Final-Accounts-of-Companies-640x360.jpg 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Preparation-of-Final-Accounts-of-Companies.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\"><strong><strong>Preparation of Final Accounts of Companies<\/strong><\/strong><\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\">MCQs on other topics of Cost Accounting <\/a><\/strong><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Cost Accounting MCQs pdf <\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. Which of the following items do not come under, reserves &amp; surplus _________<strong>_<\/strong> .<\/strong><br>a) capital redemption reserve <br>b) general reserve <br>c) provident fund <br>d) sinking fund<\/p>\n\n\n\n<p><strong>2. Opening balance of Profit &amp; Loss A\/c was Rs 7,500, dividend paid Rs 1,500, ending balance of Profit &amp; Loss A\/c was ` 5000. Net income \/ net loss was ___________ .<br><\/strong>a) loss Rs 1,000<br>b) Net loss Rs 2,000<br>c) Net Income Rs 1,000<br>d) Income Rs 6,500<\/p>\n\n\n\n<p><strong>3. The final accounts of companies are to be prepared in accordance with the provision of __________ of the Companies Act.<br><\/strong>a) Schedule VI <br>d) Schedule III <br>c) Schedule IX <br>d) Schedule II<\/p>\n\n\n\n<p><strong>4. The company\u2019s final accounts are prepared in _____________ form.<br><\/strong>a) Vertical <br>b) Horizontal <br>c) Both A &amp; B <br>d) none of the above<\/p>\n\n\n\n<p><strong>5. The summarised Balance Sheet in ____ form is supplemented by schedules giving detailed information.<\/strong><br>a) Vertical <br>b) Conventient <br>c) Horizontal <br>d) none of the above<\/p>\n\n\n\n<p><strong>6. The additional information for specific items specified in Schedule III should be ________<strong>_<\/strong> to the extent applicable.<\/strong><br>a) disclosed <br>b) reduced <br>c) added <br>d) none of the above<\/p>\n\n\n\n<p><strong>7. The ___________ value of investment should be indicated by way of a note.<br><\/strong>a) market <br>b) actual <br>c) face <br>d) none of the above<\/p>\n\n\n\n<p><strong>8. The balance in Share Forfeiture Account after reissue of forfeited shares is to be shown as _________.<br><\/strong>a) General reserve <br>b) Securities premium <br>c) capital reserve <br>d) Provision for Taxation<\/p>\n\n\n\n<p><strong>9. The exchange difference for repayment of liability relating to purchase of fixed assets is to be disclosed as change on ___________ .<\/strong><br>a) Reserve &amp; Surplus <br>b) Assets <br>c) Profit and Loss A\/c <br>d) none of the above<\/p>\n\n\n\n<p><strong>10. The amount of debtors due for more than __________ months is to be shown separately.<br><\/strong>a) five <br>b) two <br>c) six <br>d) nine<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <span class=\"has-inline-color has-vivid-red-color\">1)Provident fund  2)Loss Rs 1,000  3)Schedule III  4)vertical  5)vertical  6)disclosed  7)market<br>  8)capital reserve  9)assets  10)six<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>11. Current liabilities means liabilities payable within ___________ months from the date of Balance Sheet.<\/strong><br>a) six <br>b) twelve <br>c) four <br>d) three<\/p>\n\n\n\n<p><strong>12. Fixed deposits with banks should be shown as __________ .<\/strong><br>a) bank loan <br>b) bank balance <br>c) bank overdraft <br>d) none of the above<\/p>\n\n\n\n<p><strong>13. Immovable properties held for companies operation is to be shown as ___________ .<\/strong><br>a) investments <br>b) current liabilities <br>c) current assets <br>d) fixed assets<\/p>\n\n\n\n<p><strong>14. Immovable properties held for source of additional income is to be shown as ____________ .<br><\/strong>a) loans and advances <br>b) investment <br>c) fixed assets <br>d) current assets<\/p>\n\n\n\n<p><strong>15. The interest on loan which has accrued and due is shown as ____________.<br><\/strong>a) loan current <br>b) liabilities <br>c) unsecured loans <br>d) secured loans<\/p>\n\n\n\n<p><strong>16. Debit balance in Profit &amp; Loss Account can be shown as _________ .<br><\/strong>a) loans &amp; advances <br>b) Profit and Loss A\/c <br>c) capital W.I.P <br>d) miscellaneous expenditure or reductions from reserves<\/p>\n\n\n\n<p><strong>17. Uncalled amount on shares held as investment is shown under the heading __________ .<\/strong><br>a) contingent liability<br>b) current assets <br>c) loans &amp; advances <br>d) current liabilities<\/p>\n\n\n\n<p><strong>18. Bills discounted is to be shown as __________ .<\/strong><br>a) loans &amp; advances <br>b) contingent liability<br>c) current assets <br>d) none of the above<\/p>\n\n\n\n<p><strong>19. The value of secured loan should also show particulars of ___________ offered.<br><\/strong>a) security <br>b) Assets<br>c) Cash<br>d) none of the above<\/p>\n\n\n\n<p><strong>20. The capital work in progress is added to ___________ in Balance Sheet.<\/strong><br>a) current assets <br>b) share capital <br>c) fixed assets <br>d) current liabilities<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <span class=\"has-inline-color has-vivid-red-color\">11)twelve  12)bank balance  13)fixed assets  14)investment  15)loan  16)miscellaneous expenditure or reductions for reserves  17)contingent liability  18)contingent liability  19)security  20)fixed assets<\/span>  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>21. Loose tools are shown under ___________ assets.<\/strong><br>a) current <br>b) fixed <br>c) capital <br>d) other assets<\/p>\n\n\n\n<p><strong>22. Live stock is shown under __________ assets.<\/strong><br>a) investment <br>b) current assets <br>c) fixed assets <br>d) current liabilities<\/p>\n\n\n\n<p><strong>23. Bills receivable is shown under ___________ .<\/strong><br>a) current assets <br>b) loans and advances <br>c) Trade Receivable <br>d) current liabilities<\/p>\n\n\n\n<p><strong>24. Arrears of preference dividend is shown under _________ liabilities.<br><\/strong>a) contingent liability <br>b) current liabilities <br>c) fixed liability <br>d) none of the above<\/p>\n\n\n\n<p><strong>25. Interest accrued but not due on secured loans is shown under <em>___________ <\/em>.<\/strong><br>a) current liabilities <br>b)  unsecured loans <br>c) secured loans <br>d) none of the above<\/p>\n\n\n\n<p><strong>26. Unclaimed dividend is shown under __________ .<br><\/strong>a) current liabilities <br>b) share capital <br>c) provisions <br>d) unsecured loans<\/p>\n\n\n\n<p><strong>27. Profit and Loss of a company must be as per part __________ of schedule III of Companies Act.<\/strong><br>a) III <br>b) IV <br>c) II <br>d) VI<\/p>\n\n\n\n<p><strong>28. Repairs to building must be shown as a __________ on debit side of Profit and Loss A\/c.<\/strong><br>a) addition <br>b) separate item <br>c) other expenses <br>d) none of the above<\/p>\n\n\n\n<p><strong>29. Public deposits accepted by companies must be shown under ___________ .<\/strong><br>a) investment <br>b) secured loans <br>c) loans &amp; advances <br>d) unsecured loans<\/p>\n\n\n\n<p><strong>30. Development expenditure is shown under _________.<br><\/strong>a) current liabilities <br>b) fixed assets <br>c) other Current Assets <br>d) none of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>31. Short term loan is the loan due for not more than _________ year.<br><\/strong>a) six<br>b) five <br>c) one <br>d) two<\/p>\n\n\n\n<p><strong>32. Remuneration to MD must be shown as a _________ item in Profit and Loss A\/c.<br><\/strong>a) Expense <br>b) separate <br>c) none of the above<\/p>\n\n\n\n<p><strong>33. Bills Receivable is shown under ___________ in Balance sheet.<\/strong><br>a) contingent liability<br>b) Trade Receivable <br>c) loans &amp; advances <br>d) current liabilities<\/p>\n\n\n\n<p><strong>34. Net Block of fixed assets is shown ____________ Balance sheet.<\/strong><br>a) vertical <br>b) Horizontal <br>c) Schedule of capital <br>d) none of the above<\/p>\n\n\n\n<p><strong>35. Net Block is Gross Block less _________ .<\/strong><br>a) current assets <br>b) Accumulated depreciation <br>c) current liabilities <br>d) none of the above<\/p>\n\n\n\n<p><strong>36. Income tax under dispute is shown under ___________ .<\/strong><br>a) current assets <br>b) current liabilities <br>c) contingent liability <br>d) loans &amp; advances<\/p>\n\n\n\n<p><strong>37. Dividend is calculated on __________ capital.<\/strong><br>a) paid up <br>b) Subscribed <br>c) Uncalled<br>d) none of the above<\/p>\n\n\n\n<p><strong>38. Accounting policies are prescribed by __________.<br><\/strong>a) AS 2<br>b) AS 6<br>c) AS 13<br>d) AS 1<\/p>\n\n\n\n<p><strong>39. Dividend is declared by ___________.<br><\/strong>a) directors <br>b) stock exchange <br>c) shareholders <br>d) none of the above<\/p>\n\n\n\n<p><strong>40. Live stock is shown under ___________assets.<\/strong><br>a) Fixed <br>b) investment <br>c) current assets<br>d) None of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>41. Land is disclosed under ___________.<br><\/strong>a) PPE (Property, Plan and Equipments)<br>b) investment <br>c) Other assets <br>d) none of the above<\/p>\n\n\n\n<p><strong>42. Intellectual property rights are disclosed under ____________ .<br><\/strong>a) Other Intangible Assets <br>b) Tangible assets <br>c) Other assets <br>d) None of the above<\/p>\n\n\n\n<p><strong>43. Capital Redemption Reserve is disclosed under <strong>_<\/strong>_____________ .<\/strong><br>a) loans <br>b) Borrowings <br>c) Equity <br>d) Other Equity<\/p>\n\n\n\n<p><strong>44. Debentures are disclosed under __________ .<\/strong><br>a) Miscellaneous expenditure <br>b) Unclaimed dividend <br>c) Borrowings <br>d) none of the above<\/p>\n\n\n\n<p><strong>45. Unpaid dividend is disclosed under __________ .<\/strong><br>a) Other Financial Liability <br>b) contingent liabilities <br>c) reserves and surplus <br>d) current liabilities<\/p>\n\n\n\n<p><strong>46. Share application money received for allotment to the extent refundable is shown under ___________ .<br><\/strong>a) current assets <br>b) Other Financial Liability <br>c) current liabilities <br>d) none of the above<\/p>\n\n\n\n<p><strong>47. Share application money pending allotment is disclosed under ____________ .<br><\/strong>a) loans <br>b) Borrowings <br>c) other equity <br>d) Equity<\/p>\n\n\n\n<p><strong>48. The requirements for final account of companies are specified in Schedule ___________.<br><\/strong>a) I <br>b) III <br>c) XIII <br>d) XIV<\/p>\n\n\n\n<p><strong>49. The Schedule III prescribes vertical form of Balance Sheet in part __________ .<br><\/strong>a) 4 <br>b) 2 <br>c) 3 <br>d) 1<\/p>\n\n\n\n<p><strong>50. The unpaid interest on loan is _____________ .<br><\/strong>a) loan <br>b) current liabilities <br>c) reserve <br>d) contingent liabilities<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Learn the chapters on TYBCOM from our <a href=\"https:\/\/studio.youtube.com\/channel\/UCExY0hxogv75WdPK1MFS3fw\" data-type=\"link\" data-id=\"https:\/\/studio.youtube.com\/channel\/UCExY0hxogv75WdPK1MFS3fw\" target=\"_blank\" rel=\"noopener\">YouTube channel<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":6889,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,7],"tags":[2952],"class_list":["post-6652","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bcom","category-degree-college","tag-preparation-of-final-accounts-of-companies-mcq"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/6652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=6652"}],"version-history":[{"count":6,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/6652\/revisions"}],"predecessor-version":[{"id":39357,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/6652\/revisions\/39357"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/6889"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=6652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=6652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=6652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}