Balance Sheet Quiz - CBSE Class 12 Accountancy
Free practice quiz: Balance Sheet (CBSE Class 12 Accountancy). 20 multiple-choice questions with answers and explanations. Play online, no sign-up needed.
Play all 20 questions freeSample questions
What does the balance sheet represent?
- Financial performance
- Financial position
- Cash flows
- Investment returns
Show answer
Answer: B. Financial position
The balance sheet shows the financial position of a company at a particular point in time, detailing its assets, liabilities, and equity.
How do you calculate owner's equity?
- Assets - Liabilities
- Assets + Liabilities
- Liabilities - Assets
- Revenue - Expenses
Show answer
Answer: A. Assets - Liabilities
Owner's equity is calculated by subtracting total liabilities from total assets, reflecting the owner's residual interest in the business.
What does the accounting equation state?
- Assets = Liabilities + Owner's Equity
- Assets + Liabilities = Owner's Equity
- Liabilities = Assets + Owner's Equity
- Owner's Equity = Revenues - Expenses
Show answer
Answer: A. Assets = Liabilities + Owner's Equity
The accounting equation illustrates the relationship between assets, liabilities, and owner’s equity, which must always balance.
How is 'goodwill' treated in the balance sheet?
- As a tangible asset
- As an intangible asset
- As a liability
- Not recognized in the balance sheet
Show answer
Answer: B. As an intangible asset
Goodwill represents the value of a company's reputation and is classified as an intangible asset on the balance sheet.
What is the order of liquidity for assets on a balance sheet?
- Liabilities followed by Assets
- Assets followed by Liabilities
- Current Assets followed by Non-current Assets
- Non-current Assets followed by Current Assets
Show answer
Answer: C. Current Assets followed by Non-current Assets
Assets on a balance sheet are generally listed in order of liquidity, starting with current assets followed by non-current assets.