Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Identify the components of equity:

A. Money received against share warrants
B. Working Capital
C. Share Capital
D. Reserves & surplus
E. Cash revenue from operations
Choose the correct answer from the options given below:

Options:

A, C & E only

B, C & D only

A, B & C only

A, C & D only

Correct Answer:

A, C & D only

Explanation:

EQUITY AND LIABILITIES
1) Shareholder’s Funds (a) Share Capital (b) Reserves and Surplus (c) Money received against share warrants
2) Share Application money pending allotment
3) Non-current Liabilities (a) Long-term borrowings (b) Deferred tax liabilities (net) (c) Other long-term liabilities (d) Long-term provisions
4) Current Liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions


* The shareholders’ funds are sub-classified on the face of the balance sheet.
a) Share Capital
b) Reserves and Surplus
c) Money received against Share Warrants