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MCQ Questions for Class 12 Accountancy set-8
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1. Debentures represent:
Director’s Share in a Company
Investments by Equity Shareholders
Long-term Debt of the Business
None of these
2. Debentures carries interest at: .
12% p.a.
Fixed Rate
20% p.a.
6% p.a.
3. Generally debentures are :
Secured
Unsecured
Partly Secured
None of these
4. Premium on issue of debentures is a for Company :
Revenue Receipt
Profit
Capital Receipt
All of these
5. For a company discount on issue of debentures is :
Capital Loss
Revenue Loss
General Loss
None of these
6. ‘Premium on issue of debentures’ is shown in the Balance Sheet on:
Assets side
Liabilities side
None of these
All of these
7. The balance of discount on debentures is shown in the Balance Sheet on:
Assets side
Liabilities side
None of these
All of these
8. Rate of interest on debentures is :
12% p.a.
20% p.a.
Fixed Rate
15% p.a.
9. Discount on issue of Debentures should be written off:
Out of Securities Premium Account
Out of Capital Profits
Out of Statements of Profit and Loss
In the above order over the period of debentures
10. F Ltd. purchased machinery for a book value of ₹ 4,00,000. The consideration was paid by issue of 10% Debentures of ₹ 100 each at a discount of 20%. The Debenture Account will be credited by :
₹ 4,00,000
₹ 5,00,000
₹ 3,20,000
₹ 4,80,000
11. Debenture holder gets:
Dividend
Profit
Interest
Interest at fixed rate
12. Loss on issue of debentures is generally written off in :
5 years
10 years
15 years
Over the period of redemption
13. When debentures are issued as collateral security, which entry has to be passed ?
Debenture Suspense A/c Dr. To Debentures
No entry has to be made
(a) or (b)
None of these
14. Debenture holder receives:
Dividend
Interest
Both Dividend and Interest
Bonus
15. Debenture holders are called of the company.
Creditors
Debtors
Owners
Bankers
16. A company issued ₹ 1,00,000 12% debentures of ₹ 100 each. The amount of interest on debentures will be:
₹ 12,000
₹ 1,20,000
₹ 12,00,000
None of these
17. Premium on redemption of debentures account is :
A real account
A nominal account
A personal account
None of these
18. Debenture premium can be used to :
Write off the discount on issue of shares or debentures
Write off the premium on redemption of shares or debentures
Write off capital loss
All of the above
19. Which of the following is false ?
A company can issue redeemable debentures
A company can issue debentures with voting rights
A company can buy its own shares
A company can buy its own debentures
20. Debenture is the part of:
Share Capital
Long-term Borrowings
Owned Capital
None, of these
21. Consideration of Debenture is:
Profit
Dividend
Interest
None of these
22. Premium on Redemption of Debenture A/c is.:
Asset
Liability
Expense
Revenue
23. Loss on issue of debentures is recorded as :
Intangible Asset
Current Asset
Current Liability
Miscellaneous Expenditure
24. Which of the following is the element of financial statements?
Balance Sheet
Profit & Loss A/c
Both (a) and (b)
None of these
25. Which of the following is not required to be prepared under the Companies Act:
Statement of Profit & Loss
Balance Sheet
Anditor’s Report
Fund Flow Statement
26. Equity ₹ 90,000 Liabilities ₹ 60,000 Profit of the year ₹ 20,000. Then total assets will be :
₹ 1.70,000
₹ 1,50,000
₹1,10,000
₹ 80,000
27. The reserve which is created for a particular (specific) purpose and which is a charge against revenue is called:
Capital Reserve
General Reserve
Secret Reserve
Specific Reserve
28. An Annual Report is issued by a company to its:
Directors
Authors
Shareholders
Management
29. The profit and loss disclosed by the accounts of a company is:
Transferred to share capital account
Shown under the head of ‘Current liabilities’ and provisions
Shown under the head ‘Reserves and Surplus
None of these
30. The assets of a business can be classified as :
Fixed and Non-fixed Assets
Tangible and Intangible Assets
Non-Current and Current Asset
None of these
31. The term financial statements includes :
Statement of Profit & Loss
Balance Sheet
Statement of Profit & Loss and Balance Sheet
None of these
32. Balance Sheet is a :
Account
Statement
Both (a) and (b)
All the above
33. Financial statements are the product of accounting process.
First
Second
End
None of these
34. Financial statements disclose :
Monetary information
Qualitative information
Non-monetary information
All the above
35. Statement of Profit & Loss is also called………:
Operating Profit
Balance Sheet
Income Statement
Trading Account
36. Preliminary expenses are shown in the Balance Sheet under the head:
Non-current assets
Current assets
Non-current liabilities
Deducted from securities premium reserve
37. Debit Balance of Profit & Loss Statement will be shown on:
Assets Side of Balance Sheet
Liabilities Side of Balance Sheet
Under the head Reserve & Surplus
Under the head Reserves and Surplus as a negative item
38. Patents and copyrights fall under the category of:
Current Assets
Liquid Assets
Intangible Assets
None of these
39. Goodwill falls under which category of assets:
Current Assets
Tangible Assets
Intangible Assets
None of the above
40. Contingent Liabilities are exhibited under the heading:
Fixed Liabilities
Current Liabilities
As a footnote
None of these
41. Provision for Provident Funds is shown in the Balance Sheet of a company under the head :
Reserves and Surplus
Non-current Liabilities
Provision
Contingent Liabilities
42. Preliminary Expenses are shown in the Balance Sheet under which head ?
Fixed Assets
Reserves and Surplus
Loans & Advances
None of these
43. Financial Statements are :
Anticipated facts
Recorded facts
Estimated facts
None of these
44. The term current assets includes :
Stock
Debtors
Cash
All of these
45. Which of the following is not a part of financial statement of a company ?
Profit & Loss A/c
Balance Sheet
Ledger Account
Cash Flow Statement
46. Under which heading of Balance Sheet is general reserve shown:
Miscellaneous Expenditure
Share Capital
Reserves & Surplus
None of these
47. Current Assets on the Assets side of Balance Sheet of a Company includes:
Sundry Debtors
Cash in hand
Stock
All of these
48. As per provisions of Companies Act, 2013 under which Section, the final accounts of a company is prepard :
128
210
129
212
49. According to which part of Schedule III of the Indian Companies Act, 2013, Indian companies have to prepare Balance Sheet:
Part 1
Part 2
Part 3
Part 4
50. Balance sheet of companies is now prepared in :
Horizontal Form
Vertical Form
Either (a) or (b) Form
None of these
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