Financial Statement of a Company

Previous Years' CBSE Board Questions

3.4 Types of Financial Statements

MCQ

Liquid Assets do not include:

1. Trade Receivables
2. Cash and Cash Equivalents
3. Inventory
4. Short-term Investments (2021 C) R

VSA (1 mark)

1. Define "Cash Equivalents". (2020 C)
2. 'Prepaid Expenses' are presented in the Balance Sheet of a company under the sub-head (Delhi 2020)
3. 'Intereset accrued on investments' will be presented in the Balance Sheet of a company under the sub- head (Delhi 2020)

5A II (3/4 marks)

Item Major Head/Sub-Head

Loose Tools Trade Receivables

Cheques in Hand Current Investments

Term Loan from Bank Other Long-term

Liabilities

Computer Software Tangible Fixed Assets

1. Under which major heads and sub-heads will following the items be presented in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013?
2. Income received in advance
3. Computer Software
4. Balance of forfeited shares (2023) Ev

1. State under which major headings and sub-headings will the following items be presented in the Balance Sheet of a company as per Schedule-III, Part-I of the Companies Act, 2013.
2. Prepaid insurance
3. Investment in debenture
4. Calls-in-arrears
5. Unpaid dividend
6. Capital reserve
7. Loose tools
8. Capital work-in-progress
9. Patents being developed by the company.

(Delhi 2019)

1. Under which major heads and sub-heads will the following items be presented in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013?
2. Bank Overdraft
3. Subsidy Reserve
4. Capital Redemption Reserve
5. Mining Rights
6. Patents
7. Debit balance in the Statement of Profit and Loss
8. Debenture Redemption Reserve
9. Provision for Taxation (NCERT, AI 2019) U !

JW Ltd. was a company manufacturing geysers. As a

part of its long term goal for expansion, the company

decided to identify the opportunity in rural areas.

Initial plan was rolled out for Bhiwani village in

Haryana, Since, the village did not have regular supply

of electricity, the company decided to manufacture

solar geysers. The core team consisting of the

Regional Manager, Accountant and the Marketing

Manager was taken from the Head Office and the

remaining employees were selected from the village

and neighbourhood areas.

At the time of preparation of financial statements, the

accountant of the company fell sick and the company

deputed a junior accountant temporarily from the

village for two months.

The Balance Sheet prepared by the junior accountant

showed the following items against the Major Heads

and Sub-heads mentioned which were not as per

Schedule III of the Companies Act, 2013.

Identify any two values that the company wants to

communicate to the society. Also present the above

items under the correct major heads and sub-heads

as per Schedule III of Companies Act, 2013. (2018)

Financial statements are prepared following

the consistent accounting concepts, principles,

procedures and also the legal environment in which

the business organisations operate. These statements

are the sources of information on the basis of which

conclusions are drawn about the profitability and

financial position of a company so that their users

can easily understand and use them in their economic

decisions in a meaningful way.

From the above statement, identify any two

values that a company should observe while preparing

its financial statements. Also state under which major

headings and sub-heading the following items will be

presented in the balance sheet of a company as per

Schedule III of the Companies Act 2013.

General Reserves, short term loans and advances,

Capital work in progress and design. (Delhi 2017)

Name any two items that are shown under the head

'Other Current Liabilities' and two items that are

shown under the head 'Other Current Assets' in the

Balance Sheet of a company as per Schedule III of the

Companies Act, 2013. (Delhi 2016, Al 2016)

1. Long-term loans (Delhi 2014) U

Under which major heading the following items will be presented in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013?

1. Loans provided repayable on demand
2. Goodwill
3. Copyrights
4. Loose tools
5. Cheques
6. General Reserve
7. Stock of finished goods and
8. 9% Debentures repayable after three years.

(Delhi 2015) An

1. Under which major headings and sub-heading will the following items be shown in the balance sheet of a company as per Schedule VI, Part I of the Companies Act. 1956:
2. Net loss as shown by Statement of Profit and Loss.
3. Capital redemption reserve.
4. Bonds.
5. Loans repayable on demand.
6. Unpaid dividend.
7. Buildings.
8. Trademarks.
9. Raw materials. (Al 2015)

Under which major sub-headings the following items will be placed in the Balance Sheet of a company as per revised Schedule III, Part I of the Companies Act, 2013:

1. Accrued incomes
2. Loose tools
3. Provision for employees benefits
4. Unpaid dividend
5. Short-term loans
6. Under which sub-headings the following items will be placed in the Balance Sheet of a company as per revised Schedule-III, Part-I of the Companies Act, 2013:

Capitals reserves

1. Bonds
2. Loans repayable on demand
3. Vehicles
4. Goodwill
5. Loose tools.

(Al 2014)

3.6 Limitations of Financial Statements

MCQ.

1. Which of the following is a limitation of financial analysis?
2. It is just a study of reports of the company.
3. It judges the ability of the firm to repay is debts.
4. It identifies the reasons for change in financial position.
5. It ascertains the relative importance of different components of the financial position of the firm. (2020)

CBSE Sample Questions

3.2 Nature of Financial Statements

MCQ

1. Financial statements are prepared on certain basic assumptions (pre-requisites) known as_____
2. Provision of Companies Act, 2013
3. Accounting Standards

Column I Column II

1. (11) Patents (b) Other current assets (III) Prepaid insurance (c) Long term Borrowings
2. Debentures (d) Inventories
3. Machinery (e) Tangible Fixed assets

1. Postulates

(2022-23) R

1. Basis of Accounting

3.4 Types of Financial Statements

MCQ

2 A company has an operating cycle of eight months. It has accounts receivables amounting to ₹1,00,000 out of which ₹60,000 have a maturity period of 11 months. How would this information be presented in the balance sheet?

1. ₹40000 as current assets and ₹60,000 as non- current assets.
2. ₹60,000 as current assets and ₹40,000 as non- current assets.
3. ₹1,00,000 as non-current assets.
4. ₹1,00,000 as current assets. (Term-I, 2021-22)
5. Match the items given in Column I with the headings/ sub-headings (Balance sheet) given column II as defined in Schedule III of Companies Act, 2013.

Choose the correct option.

1. (I)-(a), (II)-(b), (III)-(d), (IV)-(c), (V)-(e)
2. (I)-(d), (II)-(a), (III)-(b), (IV)-(c), (V)-(e)
3. (I)-(d), (II)-(a), (III)-(b), (IV)-(e), (V)-(c)
4. (I)-(e), (II)-(d), (III)-(a), (IV)-(c), (V)-(b)

(Term-I, 2021-22)

Which of the following is not a part of Finance Cost

(in statement of profit and loss)?

1. Bank Charges
2. Interest Paid on Debentures
3. Interest Paid on Public Deposits
4. Loss on Issue of Debentures (2020-21