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Financial Statements of Companies MCQ Questions & Answers - Accountancy Class 12

Financial Statements of Companies MCQs : This section focuses on the "Financial Statements of Companies" in Accountancy Class 12. These Multiple Choice Questions (MCQs) should be practiced to improve the Accountancy Class 12 skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.




Question 1

Financial statements are ________ documents.

A. read only
B. write only
C. Either A or B
D. Both A and B

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Question 2

Financial statements are usually meant to furnish the financial data of the enterprise in question as precisely and concisely as feasible for both the enterprise and for the readers.

A. TRUE
B. FALSE
C. Can be true or false
D. Can not say

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Question 3

Financial statements for trading concern normally comprise?

A. balance sheets
B. statements of retained earnings
C. cash flows
D. All of the above

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Question 4

Financial statements are audited by ?

A. government firms
B. accountants
C. agencies
D. All of the above

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Question 5

A ___________ is known as a statement of financial position as it shows the position of assets, liabilities and equity at the end of an accounting period.

A. Income statement
B. Balance sheet
C. Cash flow statement
D. Notes to accounts

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Question 6

Which analysis is considered as dynamic?

A. Horizontal Analysis
B. Vertical Analysis
C. Internal Analysis
D. External Analysis

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Question 7

How many types of financial statements that are required to be prepared by an entity?

A. 2
B. 3
C. 4
D. 5

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Question 8

Which analysis is considered as static ?

A. Horizontal Analysis
B. Vertical Analysis
C. Internal Analysis
D. External Analysis

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Question 9

Analysis of Financial Statements is significant:

A. For Creditors
B. For Managers
C. For Employees
D. All of the above

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Question 10

Which of the following is not required to be prepared under the Companies Act

A. Statement of Profit and Loss
B. Balance Sheet
C. Funds Flow Statement
D. Report of Director’s and Auditor’s

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