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Accountancy M.C.Q (1 Marks)

Model Paper 4 · CBSE STD 12 Commerce (CBSE - English Medium). 6 questions.

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M.C.Q (1 Marks)

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6 questions · timed · auto-graded

MCQ 11 Mark
Under which type of activity will you classify the sale of shares of another company while preparing cash flow statement?
  • A
    Financing Activity
  • B
    Investing and Financing
  • C
    Operating Activity
  • D
    Investing Activity
Answer
(d) Investing Activity
Explanation:
Sale of shares of other company are part of investment which is now sold by the company. It is sale of investment, so it will take place in investing activity.
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MCQ 21 Mark
GSC Ltd. purchased machinery of ₹ 10,00,000 issuing a cheque of ₹ 2,50,000 and 10% Debentures of ₹ 7,50,000. In the Cash Flow Statement, the transaction will be shown as:
i. Outflow under Investing Activity ₹ 10,00,000, inflow under Financing Activity as Receipt for Debentures ₹ 7,50,000.
ii. Outflow under Investing Activity ₹ 2,50,000.
iii. Inflow of ₹ 7,50,000 as Financing Activity.
iv. None of these.
  • A
    only ii
  • B
    i and ii
  • C
    iv and i
  • D
    iii and iv
Answer
(a) only ii
Explanation:
debentures issued against purchase of machinery is non cash transaction
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MCQ 31 Mark
Paid ₹ 5,00,000 to acquire shares in Neligare Industries and received a dividend of ₹ 30,000 after acquisition. This transaction will result in:
  • A
    Cash outflow from financing activities ₹ 4,70,000
  • B
    Cash outflow from investing activities ₹ 4,70,000
  • C
    Cash inflow from investing activities ₹ 4,70,000
  • D
    Cash inflow from financing activities ₹ 4,70,000
Answer
(b) Cash outflow from investing activities ₹ 4,70,000
Explanation:
To classify this transaction based on cash flow activities:
i. Acquisition of shares is considered an investing activity because it involves the purchase of financial assets (shares). This results in a cash outflow of ₹ 5,00,000.
ii. Dividend received is considered cash inflow from operating activities (not related to the acquisition). However, in the context of this specific question, we need to look at the net cash impact of the share acquisition transaction itself, which is ₹ 5,00,000 minus ₹ 30,000 = ₹ 4,70,000.
Thus, the correct answer is cash outflow from investing activities ₹ 4,70,000, because the net cash used in the acquisition of shares is an investment-related transaction.
Correct answer: Cash outflow from investing activities ₹ 4,70,000.
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MCQ 41 Mark
Working Capital 30,000; current ratio 3 : 1 Current liabilities will be:
  • A
    15000
  • B
    30,000
  • C
    22,500
  • D
    7,500
Answer
(a) 15,000
Explanation:
Current Asset/Current Liabilities = 3/1
Current Asset = 3 Current Liabilities
Current Asset - Current Liabilities = 30,000
3 Current Liabilities - Current Liabilities = 30,000
2 Current Liabilities = 30,000
Current Liabilities = 15,000
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MCQ 51 Mark
Financial Statements are prepared on certain basic assumptions (pre-requisites) known as _________
  • A
    Postulates
  • B
    Basis of Accounting
  • C
    Provisions of Companies Act, 2013
  • D
    Accounting Standards
Answer
(a) Postulates
Explanation:
Postulates
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MCQ 61 Mark
When bad position of the business is tried to be depicted as good, it is known as:
  • A
    Personal Bias
  • B
    All of these
  • C
    Price Level Changes
  • D
    Window Dressing
Answer
(d) Window Dressing
Explanation:
Window Dressing
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M.C.Q (1 Marks) - Accountancy STD 12 Commerce Questions - Vidyadip