Financial Statements of a Company

24 solved questions from Class 12 Accountancy, each with the full working. Tap any question to see the step-by-step solution.

• 1 What is the primary topic or theoretical principle explored in 'Financial Statements of a Company' (Class 12 ACCOUNTANCY)? medium MCQ Chapter Core Principle
• 2 Which key mechanism or analytical rule is highlighted in 'Financial Statements of a Company'? medium MCQ Key Analytical Mechanism
• 3 What is the primary topic or principle explained in 'Financial Statements of a Company' (Class 12 Accountancy)? medium MCQ Chapter Core Concept
• 4 Which key observation or fact is central to understanding 'Financial Statements of a Company'? medium MCQ Key Fact & Mechanism
• 5 Why is the study of 'Financial Statements of a Company' important for students of Class 12? medium MCQ Learning Significance
• 6 What is a common application or real-world example related to 'Financial Statements of a Company'? medium MCQ Real World Application
• 7 What key takeaway should students retain after completing 'Financial Statements of a Company'? medium MCQ Chapter Summary & Takeaway
• 8 A company has the following current assets at 31 March 2026: cash ₹1,20,000, bank balance ₹2,80,000, inventories ₹3,50,000, trade receivables ₹4,10,000, prepaid rent ₹30,000 and a short‑term loan receivable of ₹25,000. What is the total current assets? easy 1 mark Calculation of total current assets
• 9 Ravi Enterprises prepared the following information for the year ended 31 March 2026 (all amounts in ₹ thousands):\n\nProfit before tax (PBT) .......... 1,200\nDepreciation expense ............ 300\nInterest received .............. 50\nLoss on sale of equipment .... 20\nDividend received .............. 30\nIncrease in inventories ........ 150\nDecrease in trade receivables ... 80\nIncrease in trade payables ...... 100\nPurchase of equipment (cash) .. 400\nProceeds from issue of share capital .. 500\nTax paid (cash) .............. 250\n\nPrepare a cash flow statement using the indirect method showing cash flows from operating, investing and financing activities, and compute the net increase in cash and cash equivalents. hard 4 marks Cash flow statement – indirect method
• 10 Harsh Corporation had the following information for the year ended 31 March 2026 (all amounts in ₹ thousands): Profit before tax ₹1,80,000; Depreciation expense ₹70,000; Interest received ₹20,000; Loss on sale of machinery ₹15,000; Dividend received ₹30,000; Increase in inventories ₹60,000; Decrease in trade receivables ₹90,000; Increase in trade payables ₹80,000; Purchase of machinery (cash) ₹200,000; Proceeds from issue of share capital ₹400,000; Tax paid (cash) ₹120,000. Prepare the Cash Flow Statement using the indirect method and compute the net increase in cash and cash equivalents. hard 5 marks Cash flow statement (indirect)
• 11 Ravi Industries has the following for the year ended 31 March 2026 (all amounts in ₹ thousands): Turnover ₹12,00,000; Cost of sales ₹7,80,000; Selling and administrative expenses ₹1,20,000; Interest expense ₹50,000; Depreciation ₹30,000; Dividend received ₹10,000; Tax rate 30%. Prepare the Income Statement and calculate the Net profit after tax. medium 3 marks Income statement preparation
• 12 A company’s current assets at 31 March 2026 are: cash ₹90,000, bank ₹150,000, inventories ₹260,000, trade receivables ₹310,000, prepaid expenses ₹20,000, short‑term loan receivable ₹15,000. What is the total current assets? easy MCQ 2 marks Current assets total
• 13 A company’s Income Statement for the year ended 31 March 2026 (all amounts in ₹ thousands) is based on the following information: Turnover ₹14,00,000; Cost of sales ₹9,20,000; Selling and administrative expenses ₹1,50,000; Depreciation ₹40,000; Interest expense ₹60,000; Dividend received ₹15,000; Tax rate 25%. Compute the Net profit after tax. medium 3 marks Preparing Income Statement and computing net profit after tax
• 14 A company’s Cash Flow Statement for the year ended 31 March 2026 (all amounts in ₹ thousands) is prepared using the indirect method. The following data is available: Profit before tax 1,500; Depreciation 200; Interest received 30; Loss on sale of equipment 25; Dividend received 20; Increase in inventories 120; Decrease in trade receivables 90; Increase in trade payables 80; Purchase of equipment (cash) 350; Proceeds from issue of share capital 600; Tax paid (cash) 200. Prepare the Cash Flow Statement and compute the net increase in cash and cash equivalents. hard 4 marks Preparing Cash Flow Statement using indirect method
• 15 A company’s current assets at 31 March 2026 are: cash ₹75,000, bank ₹125,000, inventories ₹210,000, trade receivables ₹280,000, prepaid insurance ₹15,000, short‑term loan receivable ₹10,000. What is the total current assets? easy 2 marks Calculating total current assets
• 16 When preparing the Cash Flow Statement using the indirect method, which of the following adjustments is made to reconcile profit before tax to cash provided by operating activities? medium MCQ 2 marks Adjustments in indirect cash flow statement
• 17 A company’s cash flow statement for the year ended 31 March 2026 (all amounts in ₹ thousands) is prepared using the indirect method with the following data: Profit before tax = 1,800 Depreciation = 90 Interest received = 35 Loss on sale of plant = 20 Dividend received = 25 Increase in inventories = 130 Decrease in trade receivables = 70 Increase in trade payables = 110 Purchase of plant (cash) = 400 Proceeds from issue of debentures = 500 Tax paid (cash) = 210 Prepare the cash flow statement showing cash flows from operating, investing and financing activities and compute the net increase in cash and cash equivalents. hard 5 marks Cash flow statement – indirect method
• 18 When preparing the Cash Flow Statement using the indirect method, which of the following adjustments is NOT made to reconcile profit before tax to cash provided by operating activities? medium MCQ 2 marks Operating‑section adjustments in cash flow (indirect)
• 19 Prepare the Income Statement for the year ended 31 March 2026 (all amounts in ₹ thousands) using the following data and calculate the Net profit after tax: Turnover = 13,00,000 Cost of sales = 8,20,000 Selling and administrative expenses = 1,40,000 Depreciation = 45,000 Interest expense = 55,000 Dividend received = 12,000 Tax rate = 28% medium 3 marks Preparation of profit and loss account
• 20 A company’s current assets at 31 March 2026 are: cash ₹85,000, bank ₹140,000, inventories ₹250,000, trade receivables ₹320,000, prepaid rent ₹18,000 and short‑term loan receivable ₹12,000. Calculate the total current assets. easy 1 mark Total current assets
• 21 Calculate the total current assets of XYZ Ltd. on 31 March 2026. The current assets are: cash ₹90,000; bank balance ₹120,000; inventories ₹260,000; trade receivables ₹300,000; prepaid insurance ₹20,000; short‑term loan receivable ₹15,000. easy 2 marks Current asset aggregation
• 22 Prepare the Income Statement of ABC Pvt. Ltd. for year ended 31 March 2026 (all amounts in ₹ thousands) and compute the Net profit after tax. The data: Turnover ₹10,40,000; Cost of sales ₹6,80,000; Selling and administrative expenses ₹1,60,000; Depreciation ₹25,000; Interest expense ₹20,000; Dividend received ₹5,000; Tax rate 30%. medium 3 marks Income Statement construction
• 23 Which of the following is NOT shown in the income statement of a company? easy MCQ 1 mark Income statement components
• 24 Prepare the Income Statement for the year ended 31 March 2026 and compute Net profit after tax. Turnover ₹15,00,000; Cost of sales ₹10,50,000; Selling and administrative expenses ₹1,80,000; Depreciation ₹55,000; Interest expense ₹65,000; Dividend received ₹18,000; Tax rate 32%. hard 4 marks Net profit after tax calculation