Financial Statements Quizz

1. To Know the profitability and financial position of a business we prepared at the end__

A. Balance sheet

B. Profit and loss account

C. Financial statement

D. None

2. _____ prepared to ascertain gross profit and net profit / loss during an accounting period.

A. Financial statement

B. Cash flow statement

C. Balance sheet

D. Income statement

3. Following are the Financial statement except

A. Cash Flow statement

B. Income statement

C. Statements of retained earnings

D. Audit report

4. The item discount received will appear on the

A. Credit side of Balance sheet

B. Debit side of Balance sheet

C. Debit side of Profit and loss account

D. Credit side of Profit and loss account

5. Computer of a firm should be classified as

A. Fictitious

B. Liquid assets

C. Fixed assets

D. Current assets

6. Which is not an example of Capital expenditure

A. Expenses for obtaining a license.

B. Depreciation on fixed assets

C. Preliminary expenses for floating a company.

D. Initial expenditure for acquiring patent right.

7. Revenue Expenditure means

A. The expenditure which is incurred for the day to day running of the business

B. The amount which is incurred in acquiring or improving the value of fixed assets

C. Both

D. None

8. ________ the amount which is incurred in acquiring or improving the value of fixed assets

A. Capital expenditure

B. Capital receipt

C. Revenue receipt

D. Revenue Expenditure

9. The expenditure whose amount is heavy and benefit of the likely to be derived over a number of years called

A. Deferred capital expenditure

B. Deferred revenue expenditure

C. Both

D. None

10. Capital receipts are shown in _____

A. Profit and Loss account

B. Balance Sheet

C. Trading account

D. None of these