MCQ on Class 11 Accountancy Chapter 1 Introduction to Accounting with Answe

Are you guys looking for NCERT Important MCQ Questions for Class 11 Accountancy with Answers PDF Free Download as per CBSE new exam pattern? You came to the right page. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Important Multiple Choice Questions of Class 11 Accountancy. Each question has four options followed by the right answer. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE.

Q1. Deepti wants to buy a building for her business today. Which of the following is the relevant data for his decision?

(a) Similar business acquired the required building in 2000 for Rs. 10,00,000
(b) Building cost details of 2003
(c) Building cost details of 1998
(d) Similar building cost in August, 2005 Rs. 25,00,000

(a) Similar business acquired the required building in 2000 for Rs. 10,00,000

Q2. Which is the last step of accounting as a process of information?

(a) Recording of data in the books of accounts
(b) Preparation of summaries in the form of financial statements
(c) Communication of information
(d) Analysis and interpretation of information

(c) Communication of information

Q3. Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented?

(a) Understandability
(b) Relevance
(c) Comparability
(d) Reliability

(a) Understandability

Q4. Use of common unit of measurement and common format of reporting promotes

(a) Comparability
(b) Understandability
(c) Relevance
(d) Reliability

(a) Comparability

Q5. The process of recording, classifying and summarizing all business transactions in order to know the financial result is called –

(a) Book – keeping
(c) Journalizing
(d) None of these.


Q6. Cash, goods or assets invested by the proprietor in the business for earning profit is called-

(a) Profit
(b) Capital
(c) Fixed assets
(d) None of these.

(b) Capital

Q7. The person, firm or institution who does not pay the price in cash for the goods purchased or the services received is called-

(a) Creditor
(b) Proprietor
(c) Debtor
(d)None of these.

(c) Debtor

Q8. Book – keeping is-

(a) An art
(b) A science
(c) An art and science both
(d) None of these.

(c) An art and science both

Complete the following sentences with appropriate words

Q9. Information in financial reports’is based on ……………. transactions.


Q10. Internal users are the ……………… of the business entity.


Q11. A ………………. would most likely use an entities financial report to determine whether or not the business entity is eligible for a loan.


Q12. The Internet has assisted in decreasing the ………………… in issuing financial reports to users.


Q13. ………………….. users are groups outside the business entity, who uses the information to make decisions about the business entity.


Q14. Information is said to be relevant if it is ……………….

free from bias

Q15. The document certifying the purchase or sale of goods or any monetary transaction is called …………….


Q16. The thing which is purchased and sold in the business is called …………….


Q17. The things or properties which helps in smooth functioning of the business and which are owned by the business are called ……………. of the business.


Q18. The unsold goods left at the end of the year is called ……………..

Closing stock

Q19. …………… represents the excess of assets over liabilities.


State True or False:

Q20. Trade discount is given on credit transactions only.


MCQ Questions for Class 11 Accountancy: Financial Accounting

Practicing NCERT Accountancy Important MCQs With Answers Pdf Class 11 is one of the best ways to prepare for the CBSE Class 11 board exam. There is no substitute for consistent practice whether one wants to understand a concept thoroughly or one wants to score better. If you have any queries regarding The Solid State CBSE Class 11 Accountancy Important MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

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