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Balance Sheet Classification Questions

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

Debentures are classified under which head in the Balance Sheet?

a)

Short-term borrowings

b)

Long-term borrowings

c)

Reserves and Surplus

d)

Current liabilities

2.

Goodwill appears under which main heading in the Balance Sheet?

a)

Non-current assets

b)

Current assets

c)

Reserves and Surplus

d)

Share capital

3.

Securities Premium Reserve is shown under which head?

a)

Share capital

b)

Non-current liabilities

c)

Reserves and Surplus

d)

Other current liabilities

4.

Advance tax paid is shown under which classification?

a)

Other current assets

b)

Short-term borrowings

c)

Current liabilities

d)

Cash and cash equivalents

5.

Closing stock is shown on which side and under which head?

a)

Assets side – Current assets

b)

Assets side – Non-current assets

c)

Liabilities side – Current liabilities

d)

Liabilities side – Reserves and Surplus

6.

Outstanding expenses are recorded under which section?

a)

Current liabilities

b)

Current assets

c)

Non-current liabilities

d)

Shareholders’ funds

7.

Prepaid expenses appear as:

a)

Current liabilities

b)

Current assets

c)

Non-current assets

d)

Reserves and Surplus

8.

Which of the following is not a part of Shareholders’ Funds?

a)

Share capital

b)

Reserves and Surplus

9.

Which of the following items is shown under Non-current assets (Tangible)?

a)

Patents

b)

Trade receivables

c)

Land and Buildings

d)

Short-term investments

10.

Trade payables are grouped under:

a)

Shareholders’ funds

b)

Non-current liabilities

c)

Current liabilities

d)

Non-current assets

11.

Which one of the following is an intangible asset?

a)

Furniture

b)

Building

c)

Patent

d)

Machinery

12.

From the following, identify the 'odd one out' as per Balance Sheet classification:

a)

Inventory

b)

Trade receivables

c)

Cash at bank

d)

Plant and Machinery

13.

Proposed dividend (if shown) is treated as:

a)

Non-current liability

b)

Current liability

c)

Contingent liability

d)

Provision under current liabilities

14.

Which of the following does not affect the Balance Sheet total?

a)

Outstanding expenses

b)

Closing stock

c)

Prepaid insurance

d)

Depreciation charged

15.

Short-term provisions include:

a)

Provision for taxation

b)

Debentures

c)

Trade payable

16.

Which of the following is an example of a provision?

a)

Provision for taxation

b)

Capital reserve

c)

Share premium

d)

Goodwill