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Commerce (/commerce/) >  Commerce MCQs

(/commerce/commerce-mcqs/) >  Financial Statements
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Mcqs (/commerce/financial-statements-mcqs/)

MCQs on Financial
Statements

Financial statements are written documents that

transmit the nancial activities and conditions of an
entity. Financial statements
(https://byjus.com/commerce/ nancial-statements-of-a-
company/) are usually meant to furnish the nancial data
so the investors, shareholders, creditors, and the
government can utilise them.

Financial statements for trading concern normally

comprise balance sheets, statements of retained
earnings, cash ows and income statements. The
statement is audited by government rms, accountants, (https://students.byjus.com/oauth/authoriz
agencies, etc. to make sure the certainty and for tax, redirect_uri=https%3A%2F%2Flearn.byjus.co
nancing or investing intentions.

Given below are essential MCQs on the Financial

Statements to analyze your understanding of the topic.
The answers are also given for your reference.

Financial Statements MCQs

Question 1

Which report gives a review on the pro tability of a

business

A) Statement of changes in equity

B) Cash ow statement

C) Balance sheet

D) Income statement (https://students.byjus.com/oauth/authoriz

redirect_uri=https%3A%2F%2Flearn.byjus.co
Answer: D

Question 2

When assets are subtracted from liabilities it will be

equal to
Join BYJU'S Learning
A) Capital Program
B) Net income Name
C) Working capital

D) Goodwill Mobile Number

Answer: A

Question 3 City / Town

Goodwill is categorised under which assets?

Grade/Exam
A) Intangible

B) Current
C) Long term Email Address
D) Fixed

Answer: A Submit

Question 4

Which of the following options is not recorded in the

Balance sheet?

A) Cash

B) Rent expenses

C) Building

D) Goodwill

Answer: B

Question 5

Current assets are also known as

A) Cash

B) Assets

C) Invested capital

D) Working capital

Answer: D

Question 6

The main operation expenses of a business are termed

as

A) Operating expenses

B) Non-administration expense

C) Selling expenses

D) Administration expense

Answer: A

Question 7

Cash receipt received from the sales xed assets are

registered under the head of

A) Other activities

B) Investing activities

C) Financing activities

D) Operating activities

Answer: B

Question 8

A current asset that can be transferred into cash within

three months is known as

A) Cash equivalent

B) Intangible asset

C) Operating asset

D) Cash asset

Answer: A

Question 9

A method used in a comparative analysis of nancial

statement is

A) Returning analysis

B) Common size analysis

C) Preference analysis

D) Graphical analysis

Answer: B

Question 10

Which statement shows the ow of cash and cash

equivalents during the nancial period?

A) Statement of changes in equity

 B) Cash ow statement

C) Balance sheet

D) Income statement

Answer: B

Stay tuned to BYJU’S for more MCQs, accounts sample

paper, question papers, syllabus and Commerce
noti cations.

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