R4RIN – MCQs, Mock Tests | ICSE XII MCQ Questions for Class 12 Accountancy set-8

Debentures represent:

1. Director’s Share in a Company
2. Investments by Equity Shareholders
3. Long-term Debt of the Business
4. None of these

✅ Correct Answer: 3

Debentures carries interest at: .

1. 12% p.a.
2. Fixed Rate
3. 20% p.a.
4. 6% p.a.

✅ Correct Answer: 2

Generally debentures are :

1. Secured
2. Unsecured
3. Partly Secured
4. None of these

✅ Correct Answer: 1

Premium on issue of debentures is a for Company :

1. Revenue Receipt
2. Profit
3. Capital Receipt
4. All of these

✅ Correct Answer: 3

For a company discount on issue of debentures is :

1. Capital Loss
2. Revenue Loss
3. General Loss
4. None of these

✅ Correct Answer: 1

‘Premium on issue of debentures’ is shown in the Balance Sheet on:

1. Assets side
2. Liabilities side
3. None of these
4. All of these

✅ Correct Answer: 2

The balance of discount on debentures is shown in the Balance Sheet on:

1. Assets side
2. Liabilities side
3. None of these
4. All of these

✅ Correct Answer: 1

Rate of interest on debentures is :

1. 12% p.a.
2. 20% p.a.
3. Fixed Rate
4. 15% p.a.

✅ Correct Answer: 3

Discount on issue of Debentures should be written off:

1. Out of Securities Premium Account
2. Out of Capital Profits
3. Out of Statements of Profit and Loss
4. In the above order over the period of debentures

✅ Correct Answer: 4

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 :

1. ₹ 4,00,000
2. ₹ 5,00,000
3. ₹ 3,20,000
4. ₹ 4,80,000

✅ Correct Answer: 2

Debenture holder gets:

1. Dividend
2. Profit
3. Interest
4. Interest at fixed rate

✅ Correct Answer: 3

Loss on issue of debentures is generally written off in :

1. 5 years
2. 10 years
3. 15 years
4. Over the period of redemption

✅ Correct Answer: 4

When debentures are issued as collateral security, which entry has to be passed ?

1. Debenture Suspense A/c Dr. To Debentures
2. No entry has to be made
3. (a) or (b)
4. None of these

✅ Correct Answer: 3

Debenture holder receives:

1. Dividend
2. Interest
3. Both Dividend and Interest
4. Bonus

✅ Correct Answer: 2

Debenture holders are called of the company.

1. Creditors
2. Debtors
3. Owners
4. Bankers

✅ Correct Answer: 1

A company issued ₹ 1,00,000 12% debentures of ₹ 100 each. The amount of interest on debentures will be:

1. ₹ 12,000
2. ₹ 1,20,000
3. ₹ 12,00,000
4. None of these

✅ Correct Answer: 3

Premium on redemption of debentures account is :

1. A real account
2. A nominal account
3. A personal account
4. None of these

✅ Correct Answer: 3

Debenture premium can be used to :

1. Write off the discount on issue of shares or debentures
2. Write off the premium on redemption of shares or debentures
3. Write off capital loss
4. All of the above

✅ Correct Answer: 4

Which of the following is false ?

1. A company can issue redeemable debentures
2. A company can issue debentures with voting rights
3. A company can buy its own shares
4. A company can buy its own debentures

✅ Correct Answer: 2

Debenture is the part of:

1. Share Capital
2. Long-term Borrowings
3. Owned Capital
4. None, of these

✅ Correct Answer: 2

Consideration of Debenture is:

1. Profit
2. Dividend
3. Interest
4. None of these

✅ Correct Answer: 3

Premium on Redemption of Debenture A/c is.:

1. Asset
2. Liability
3. Expense
4. Revenue

✅ Correct Answer: 2

Loss on issue of debentures is recorded as :

1. Intangible Asset
2. Current Asset
3. Current Liability
4. Miscellaneous Expenditure

✅ Correct Answer: 4

Which of the following is the element of financial statements?

1. Balance Sheet
2. Profit & Loss A/c
3. Both (a) and (b)
4. None of these

✅ Correct Answer: 3

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

1. Statement of Profit & Loss
2. Balance Sheet
3. Anditor’s Report
4. Fund Flow Statement

✅ Correct Answer: 3

Equity ₹ 90,000 Liabilities ₹ 60,000 Profit of the year ₹ 20,000. Then total assets will be :

1. ₹ 1.70,000
2. ₹ 1,50,000
3. ₹1,10,000
4. ₹ 80,000

✅ Correct Answer: 1

The reserve which is created for a particular (specific) purpose and which is a charge against revenue is called:

1. Capital Reserve
2. General Reserve
3. Secret Reserve
4. Specific Reserve

✅ Correct Answer: 4

An Annual Report is issued by a company to its:

1. Directors
2. Authors
3. Shareholders
4. Management

✅ Correct Answer: 3

The profit and loss disclosed by the accounts of a company is:

1. Transferred to share capital account
2. Shown under the head of ‘Current liabilities’ and provisions
3. Shown under the head ‘Reserves and Surplus
4. None of these

✅ Correct Answer: 3

The assets of a business can be classified as :

1. Fixed and Non-fixed Assets
2. Tangible and Intangible Assets
3. Non-Current and Current Asset
4. None of these

✅ Correct Answer: 3

The term financial statements includes :

1. Statement of Profit & Loss
2. Balance Sheet
3. Statement of Profit & Loss and Balance Sheet
4. None of these

✅ Correct Answer: 3

Balance Sheet is a :

1. Account
2. Statement
3. Both (a) and (b)
4. All the above

✅ Correct Answer: 2

Financial statements are the product of accounting process.

1. First
2. Second
3. End
4. None of these

✅ Correct Answer: 3

Financial statements disclose :

1. Monetary information
2. Qualitative information
3. Non-monetary information
4. All the above

✅ Correct Answer: 1

Statement of Profit & Loss is also called………:

1. Operating Profit
2. Balance Sheet
3. Income Statement
4. Trading Account

✅ Correct Answer: 3

Preliminary expenses are shown in the Balance Sheet under the head:

1. Non-current assets
2. Current assets
3. Non-current liabilities
4. Deducted from securities premium reserve

✅ Correct Answer: 4

Debit Balance of Profit & Loss Statement will be shown on:

1. Assets Side of Balance Sheet
2. Liabilities Side of Balance Sheet
3. Under the head Reserve & Surplus
4. Under the head Reserves and Surplus as a negative item

✅ Correct Answer: 4

Patents and copyrights fall under the category of:

1. Current Assets
2. Liquid Assets
3. Intangible Assets
4. None of these

✅ Correct Answer: 3

Goodwill falls under which category of assets:

1. Current Assets
2. Tangible Assets
3. Intangible Assets
4. None of the above

✅ Correct Answer: 3

Contingent Liabilities are exhibited under the heading:

1. Fixed Liabilities
2. Current Liabilities
3. As a footnote
4. None of these

✅ Correct Answer: 3

Provision for Provident Funds is shown in the Balance Sheet of a company under the head :

1. Reserves and Surplus
2. Non-current Liabilities
3. Provision
4. Contingent Liabilities

✅ Correct Answer: 2

Preliminary Expenses are shown in the Balance Sheet under which head ?

1. Fixed Assets
2. Reserves and Surplus
3. Loans & Advances
4. None of these

✅ Correct Answer: 4

Financial Statements are :

1. Anticipated facts
2. Recorded facts
3. Estimated facts
4. None of these

✅ Correct Answer: 2

The term current assets includes :

1. Stock
2. Debtors
3. Cash
4. All of these

✅ Correct Answer: 4

Which of the following is not a part of financial statement of a company ?

1. Profit & Loss A/c
2. Balance Sheet
3. Ledger Account
4. Cash Flow Statement

✅ Correct Answer: 3

Under which heading of Balance Sheet is general reserve shown:

1. Miscellaneous Expenditure
2. Share Capital
3. Reserves & Surplus
4. None of these

✅ Correct Answer: 3

Current Assets on the Assets side of Balance Sheet of a Company includes:

1. Sundry Debtors
2. Cash in hand
3. Stock
4. All of these

✅ Correct Answer: 4

As per provisions of Companies Act, 2013 under which Section, the final accounts of a company is prepard :

1. 128
2. 210
3. 129
4. 212

✅ Correct Answer: 3

According to which part of Schedule III of the Indian Companies Act, 2013, Indian companies have to prepare Balance Sheet:

1. Part 1
2. Part 2
3. Part 3
4. Part 4

✅ Correct Answer: 1

Balance sheet of companies is now prepared in :

1. Horizontal Form
2. Vertical Form
3. Either (a) or (b) Form
4. None of these

✅ Correct Answer: 2