Practice Test

Q1) The financial statements of company shall be in the form provided in: Show Answer

Q2) Part I of the Schedule III to the Companies Act, 2013 gives the - Show Answer

Q3) As per Section 129(2) of the Companies Act, 2013, at every _____ of a company, the Board of Directors of the company shall lay before such meeting financial statements for the financial year Show Answer

Q4) The company shall attach along with its financial statement, a separate statement containing the salient features of the financial statement of its subsidiary or subsidiaries in _____ as per the Companies (Accounts) Rules, 2014. Show Answer

Q5) Notes to accounts shall contain information in addition to that presented in the Financial Statements and shall provide where required:
1. Narrative descriptions or disaggre¬gation's of items recognized in those statements
2. Information about items that do not qualify for recognition in those statements.
Select the correct answer from the options given below
Show Answer

Q6) If the turnover of the company is less than Rs. 100 Crore, the figures appearing in the Financial Statements may be rounded off to nearest Show Answer

Q7) Statement I:
Where the financial statements of a company do not comply with the accounting standards referred, the company shall disclose in its financial statements, the deviation from the accounting standards but the reasons for such deviation and the financial effects, if any, arising out of such deviation are not required to be given.
Statement II:
As per Section 129 of the Companies Act, 2013 the word “subsidiary” shall include associate company and joint venture.
Select the correct answer from the options given below -
Show Answer

Q8) If the turnover of the company more than Rs. 100 Crore, the figures appearing in the Financial Statements may be rounded off to nearest - Show Answer

Q9) Under which heading the Deferred Tax Liabilities appears in the balance sheet? Show Answer

Q10) An auditor of a company signed the balance sheet, profit & loss account and schedules/notes and furnished the auditor’s report on the same date on which the reports were signed by the directors on behalf of the board. One of the director raised objection stating that the audit cannot be completed and certified in a day. Which of the following statement is correct? Show Answer

Q11) An asset shall be classified as current: Show Answer

Q12) A copy of the financial statements, including consolidated financial statement, along with all the documents attached to financial statements, duly adopted at the AGM, shall be filed with the Registrar within _____ of the date of AGM in prescribed manner along with prescribed fees. Show Answer

Q13) As per Schedule III of the Companies Act, 2013, where the normal operating cycle cannot be identified, it is assumed to have duration of - Show Answer

Q14) As per Rule 12 of the Companies (Accounts) Rules, 2014, a financial statement shall be filed in _____ which should be pre-certified by Practicing CA. Show Answer

Q15) A liability shall be classified as current when it satisfies any of the following criteria: Show Answer

Q16) OPC shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements, within _____ from the closure of the financial year. Show Answer

Q17) Which of the following is required to be disclosed in notes to accounts in respect of ‘Share Capital'? Show Answer

Q18) As per Rule 3 of the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015, all companies having __________ has to file their Balance Sheet, Profit & Loss A/c and other documents with the Registrar using the Extensible Business Reporting Language (XBRL). Show Answer

Q19) Which of the following appears under the heading ‘Reserves & Surplus’ in the balance sheet? Show Answer

Q20) As per Schedule III of the Companies Act, 2013, a Company shall disclose by way of notes additional information regarding aggregate expenditure and income in relation to any item of income or expenditure which exceeds: Show Answer

Q21) As per Rule 3 of the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015, all companies having turnover of _____ has to file their Balance Sheet, Profit & Loss A/c and other documents with the Registrar using the Extensible Business Reporting Language (XBRL) Show Answer

Q22) As per Section 128 of the Companies Act, 2013, every company shall prepare and keep at its _____ books of account and other relevant books and papers and financial statement for every financial year Show Answer

Q23) Which of the following will be shown in the balance sheet under the heading ‘cash and cash equivalents’? Show Answer

Q24) Which of the following type of company is required to file their accounts in Extensible Business Reporting Language (XBRL) format? Show Answer

Q25) Declared dividend must be paid within _____ of declaration. Show Answer

Q26) Retained earnings are - Show Answer

Q27) Which of the following type of company is required to file their accounts in Extensible Business Reporting Language (XBRL) format?
(I) Subsidiary of Indian Listed Company
(II) Companies which are required to prepare their financial statements in accordance with the Companies (Indian Accounting Standards) Rules, 2015
(III) Private company having turnover of Rs. 99 Crore.
(IV) Public companies having paid-up capital of Rs. 3 Crore.
Select the correct answer from the options given below -
Show Answer

Q28) The primary goal of a publicly-owned firm interested in serving its stockholders should be to Show Answer

Q29) In the real world, we find that dividends - Show Answer

Q30) Which of the following statement is correct? Show Answer

Q31) As per provisions of the Companies Act, 2013, dividend can be paid -
1. Out of current profit
2. Out of revaluation reserve
3. Out of profits of previous financial years
4. Out of money provided by the Central or State Government
5. Out of free reserve
Select the correct answer from the options given below.
Show Answer

Q32) As per Section 128 of the Companies Act, 2013, a company may, before the declaration of any dividend in any financial year, transfer _____ to the reserves of the company. Show Answer

Q33) As per Rule 7 of the Companies (Declaration & Payment of Dividend) Rules, 2014, in the event of inadequacy or absence of profits in any year, a company may declare dividend out of surplus subject to the fulfilment of the condition that rate of dividend declared shall not exceed the average of the rates at which dividend was declared by it in the _____ immediately preceding that year. Show Answer

Q34) As per Rule 7 of the Companies (Declaration & Payment of Dividend) Rules, 2014, in the event of inadequacy or absence of profits in any year, a company may declare dividend out of surplus subject to the fulfilment of the condition that total amount to be drawn from such accumulated profits shall not exceed _____ as appearing in the latest audited financial statement. Show Answer

Q35) As per Rule 7 of the Companies (Declaration & Payment of Dividend) Rules, 2014, in the event of inadequacy or absence of profits in any year, a company may declare dividend out of surplus subject to the fulfilment of the condition the balance of reserves after such withdrawal shall not fall below _____ as appearing in the latest audited financial statement. Show Answer

Q36) As per the provisions of the Companies Act, 2013, the amount of the dividend, including interim dividend, shall be deposited in a scheduled bank in a separate account within _____ from the date of declaration of such dividend. Show Answer

Q37) After declaration of dividend, the company has to pay dividend within _____ of declaration of dividend. If amount of dividend remains unpaid or unclaimed for 30 days of declaration of dividend, then in next _____ the company has to transfer the amount unclaimed to the to a special account in any scheduled bank to be called the "Unpaid Dividend Account”. Show Answer

Q38) In the Balance Sheet Corporate Dividend Tax will be shown as a liability under the heading - Show Answer

Q39) Any money transferred to the unpaid dividend account of a company which remains unpaid or unclaimed for a period of _____ from the date of such transfer must be transferred by the company to Investor Education and Protection Fund Show Answer

Q40) A Company has a paid up equity share capital of Rs. 37,50,000(of Rs. 10each)and 11% preference share capital of Rs. 12,50,000 (of Rs. 100 each). The balance of profit brought forward from the previous Balance Sheet was Rs. 95,000. Profit for the year ended on 31.3.2018 amounted to Rs. 14,50,000 after tax. The directors proposed a dividend of 24% on equity share capital, after the following provisions:
(i) Transfer 10% of current profits to general reserves.
(ii) Provision of dividend on preference shares
Assume corporate dividend tax rate 17%. Closing balance of Profit & Loss A/c will be -
Show Answer

Q41) A company had made provision for tax Rs. 70,000 for last year. Actual tax liability for the last financial year settled at Rs. 68,000. If had paid advance tax for last year Rs. 65,000. Which of the following statement is correct in relation tax treatment in accounts of the company? Show Answer

Q42) Yash Ltd. has only one type of capital, viz 40,000 equity shares of Rs. 100 each. It also has got reserves totalling Rs. 20,00,000. The company closes its books on 31st March each year. It has paid dividends @15%upto 2015-2016 and 20% thereafter. In 2018-2019, the company suffered a loss of Rs. 2,50,000; therefore, it wishes to draw required amount out of the reserves to pay dividend at 12%. As the Companies (Declaration of Dividend Out of Reserves) Rules, 2014 how much maximum percentage of dividend can be paid by the company out of reserves. Show Answer

Q43) The paid-up capital of Apsara Ltd. consisted of 5,00,000 equity shares of Rs. 10 each and 50,000, 8% preference shares of Rs. 100 each. The statement of profit and loss of the company for the year ended 31.3.2019 showed net profit before tax of Rs. 20,00,000. Net profit brought forward from previous year’s balance sheet amounted to Rs. 6,00,000. Company makes a provision of 40% for income tax. Following appropriations were proposed by the company:
(a) To pay final dividend @ Rs. 1.50 per share to equity shareholders.
(b) To transfer 5% of net profit to general reserve.
Assume corporate dividend tax rate 17%. Closing balance of Profit & Loss A/c will be -
Show Answer

Q44) The part of share capital which can be called up only on the winding up of a company is called: Show Answer

Q45) The amount of capital that is mentioned in capital clause is known as: Show Answer

Q46) "Proposed dividends" is shown in the Balance Sheet of a Company under the head: Show Answer

Q47) ............. and ............. of Schedule III of Companies Act, 2013, deals with presentation of Profit & Loss Account and Balance Sheet: Show Answer

Q48) Equity - Rs. 90,000, Liability - Rs. 60,000Profit of the year - Rs. 20,000, Find Total Assets. Show Answer

Q49) A ............. is an artificial person created by law with a perpetual succession and a common seal. Show Answer

Q50) Equity shareholders have a right to: Show Answer

Q51) Equity shareholders are of a company. Show Answer

Q52) According to Company Act, 2013, Balance sheet of a company is prepared as per Show Answer

Q53) The Reserve which is created for a particular purpose and which is a charge against revenue is called Show Answer

Q54) Premium received on issue of shares are shown under the head ............. in Balance Sheet: Show Answer

Q55) Which assets is not current asset: Show Answer

Q56) As per the Companies Act only preference shares, which are redeemable within ............. can be issued: Show Answer

Q57) Balance amount in the share forfeiture would be shown in the balance sheet under the head of ............. . Show Answer

Q58) As per the Companies Act, a company cannot proceed to allot shares unless ............. is received. Show Answer

Q59) Capital Reserve is created out of: Show Answer

Q60) A Limited provides you the following information:
Equity share capital called up - Rs. 4,00,000,
Calls in advance - Rs. 25,000,
Calls in arrears - Rs. 40,000.
The amount of paid up capital to be shown in the Balance Sheet of A Limited will be? Show Answer

Q61) Final accounts of a company are prepared according to ............. . of Companies Act, 2013: Show Answer

Q62) A Public Co. can have a minimum of ............. members: Show Answer

Q63) In the company's balance sheet, unclaimed dividend should be shown under which of the following heads ............. . Show Answer

Q64) Which of the following is not the feature of a company? Show Answer

Q65) Unless otherwise stated a preference share is always deemed to be: Show Answer

Q66) Profit prior to incorporation is an example of Show Answer

Q67) Z Ltd. whose financial statements comply with accounting standards, as prescribed under section 133 of Companies Act, 2013, cannot apply the securities premium amount for the purpose of: Show Answer

Q68) Financial statement as per Section 2(40) of the Companies Act 2013, inter-alia not includes: Show Answer

Q69) The maximum number of partner is mentioned in:- Show Answer

Q70) Financial statements which are presented to outsiders are:
1. Balance Sheet
2. Cash Flow
3. Trial Balance
4. P & L A/c Show Answer

Q71) Dividend proposed to be paid is calculated as a percentage of Show Answer

Q72) Balance sheet shows the balance of assets and liabilities for: Show Answer

Q73) Statement of Profit and Loss shows the profit for: Show Answer

Q74) Dividend declared and paid by a company: Show Answer

Q75) Consider the following items which appear under Reserves and Surplus of balance sheet of a company:
(1) Statement of Profit and Loss
(2) Capital Redemption Reserve
(3) Securities premium
(4) Capital Reserve
The correct sequence of these items is: Show Answer

Q76) What is whole dividend distribution tax rate for financial year 2017-18: Show Answer

Q77) Part I Schedule III of the Companies Act, 2013 prescribes: Show Answer

Q78) The profit before commission is Rs. 21,000. The commission paid to manager is 5% on net profit. The commission will be: Show Answer

Q79) Live-stock is shown in the balance sheet of a company as: Show Answer

Q80) Closing stock apperaing in trial balance will be taken to: Show Answer

Q81) Goodwill is shown under: Show Answer

Q82) What is the correct sequence of the following actions required for the preparation of final accounts:
(1) Preparation of Trial Balance
(2) Balancing of Accounts
(3) Preparation of annual financial statement
(4) Making adjusting entries Select the correct answer using the codes given below: Show Answer

Q83) Which of the following is shown in surplus in statement of profit and loss: Show Answer

Q84) Which of the following does not belong to the category of fixed assets: Show Answer

Q85) Which of the following statements are false? Show Answer

Q86) State which of them are true?
(A) When ratios of previous years are compared with current years, they are called trend ratios.
(B) Trend percentages and trend ratios are used in static analysis.
(C) Reliability of financial analysis depends upon the reliability of financial data. Show Answer

Q87) Comparison of financial statements highlights the trend of the ............. of the business. Show Answer

Q88) Analysis of any financial statement comprises Show Answer

Q89) Which of the following statements are true?
(A) Common-size balance sheet shows relative value of the various items.
(B) In the common size income statement, each product is represented as a percentage of the net sales figure.
(C) Common size income statements represent the various elements as a percentage of the gross profit. Show Answer

Q90) Which of the following statements are true?
(A) External analysis depends entirely on issued financial statements.
(B) Interpretation and analysis both are different.
(C) Financial analysis covers interpretation. Show Answer

Q91) Which of the following are techniques, tools or methods of analysis and interpretation of financial statements? Show Answer

Q92) Interpretation of accounts is the Show Answer

Q93) The form of balance sheet is Show Answer

Q94) The term current asset doesn't cover Show Answer

Q95) P & L statement is also known as Show Answer

Q96) Which of the following is true about financial statements?
(A) Financial statement gives a summary of accounts.
(B) Financial statements can be stated as recorded facts. Show Answer

Q97) Which of the following statements are true?
(A) Financial statements are only interim report.
(B) Financial statements are also known as annual records.
(C) Financial statements are historic. Show Answer

Q98) Agency cost consists of Show Answer

Q99) Which capital is shown in B/S: Show Answer

Q100) The maximum amount beyond which a company is not allowed to raise funds by issue of shares is known as: Show Answer

Q101) Dividends are usually paid on: Show Answer

Q102) As per Companies Act, 2013, the prescribed form of Balance sheet of a company is given in: Show Answer

Q103) At the time of preparation of Balance Sheet, capital Work-in-progress is shown in the head of: Show Answer

Q104) As per ICAI guidance Note, at the end of the year, balance of share Options Outstanding account should be shown under the: Show Answer

Q105) A company shall disclose by way of notes, additional information regarding aggregate expenditure and income on any item of income or expenditure which exceeds Show Answer

Q106) A balance sheet has two parts to it, i.e
i. equity and liabilities and
ii._____________ Show Answer

Q107) The maximum amount of capital a company can issue is called Show Answer

Q108) Share Options Outstanding Account will be shown in the Balance Sheet of a company under the heading Show Answer

Q109) Loans from banks repayable on demand will be classified in the Balance sheet of a company as: Show Answer

Q110) In the Balance Sheet of a company which item shall be sub-classified as:(i) Secured, considered good; (ii) Unsecured, considered good; (iii) Doubtful Show Answer

Q111) A corporate balance sheet is also known as: Show Answer

Q112) The arrangement of assets and liabilities in accordance with a particular order is known as ______of balance sheet. Show Answer

Q113) As per the provisions of the Companies Act, 2013, companies must maintain their accounts under_____. Show Answer

Q114) If the company's Issued Capital is more than the Authorized Capital, and approval of increase in Authorized Capital is pending, the amount of Share Application Money received over and above the Authorized Capital should be shown under the head: Show Answer

Q115) The term "Continuing default" is used with respect to: Show Answer

Q116) According to the rules for the purpose of sub-section(1) of Section 129, the class of companies as may be notified by the Central Government from time to time, shall mandatorily file their financial statements Show Answer

Q117) In the context of filing of financial statements by a company, the term "XBRL" means____ Show Answer

Q118) According to section 128(1) of the Companies Act, 2013 every company shall prepare and keep its books of accounts and other relevant books and papers and financial statements for every financial year which give a true and fair view of the state of the affairs of the company at its____ Show Answer

Q119) As per Companies Act, 2013, the prescribed form for Statement of Profit and Loss is given in: Show Answer

Q120) ____ and ____ of Schedule III of Companies Act, 2013, deals with presentation of Profit and loss Account and Balance Sheet: Show Answer

Q121) Equity - Rs 90,000, Liability - Rs 60,000 Profit of the year - Rs 20,000, Find Total assets. Show Answer

Q122) Equity shareholders are ___ of a company Show Answer

Q123) As per the Companies Act, a company cannot proceed to allot shares unless ___is received. Show Answer

Q124) Capital Reserve is created out of: Show Answer

Q125) P & L statement is also known as Show Answer