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Accountancy Quiz - Financial Statements II

Class XI
Accountancy
Financial Statements - II
14 questions
MEDIUM

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1. What is the primary purpose of preparing financial statements?

To calculate tax liabilities · To provide information for decision making · To comply with legal requirements · To assess employee performance

2. Which of the following is NOT a component of the financial statements?

Balance Sheet · Profit and Loss Account · Cash Flow Statement · Trial Balance

3. What does the Balance Sheet represent?

Revenue and expenses over a period · Assets, liabilities, and equity at a point in time · Cash inflows and outflows · Net profit or loss

4. Which financial statement shows the performance of a business over a period?

Balance Sheet · Profit and Loss Account · Cash Flow Statement · Statement of Changes in Equity

5. What do we call the excess of revenue over expenses?

Net Profit · Net Loss · Gross Profit · Operating Income