Financial Statements - MCQs with answers

Financial Statements - MCQs with answers


1. 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

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ANSWER: c) Profit & Loss Statement and Balance sheet



2. The form of balance sheet is

a) Vertical
b) Horizontal
c) Horizontal and vertical
d) Horizontal or vertical

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ANSWER: d) Horizontal or vertical



3. The term current asset doesn’t cover

a) Car
b) Debtors
c) Stock
d) Prepaid expenses

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ANSWER: a) Car



4. P&L statement is also known as

a) Statement of operations
b) Statement of income
c) Statement of earnings
d) All of the above

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ANSWER: b) Statement of income



5. 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.

a) Only A
b) Only B
c) Both A and B
d) None of the above

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ANSWER: c) Both A and B



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

a) True
b) False

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ANSWER: a) True



7. Schedules attached with the balance sheet forms a part of the financial statements.

a) True
b) False

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ANSWER: a) True



8. 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.

a) Both A and B
b) Both A and C
c) Both B and C
d) A, B, C

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ANSWER: c) Both B and C



9. Certain assumptions are essential to prepare financial statements.

a) True
b) False

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ANSWER: a) True


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    Discussion

  • RE: Financial Statements - MCQs with answers -PRERNA AGRAWAL (12/02/18)
  • good
  • RE: Financial Statements - MCQs with answers -sajid (02/12/18)
  • VERY HELPFUL MCQS