MCQ on Class 11 Accountancy Chapter 2 Theory Base of Accounting with Answers

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. The Trading and Profit and Loss Account is prepared under which attribute of accounting:

a) Summarising
b) Recording
c) Classifying
d) Analysis and Interpretation

a) Summarising


Q2. Identified and measured economic events should be recorded in _ order.

a) Chronological
b) Financial
c) Proper
d) Monetary

a) Chronological


Q3. Which of the following statements is correct:

a) Book Keeping is a part of Accounting.
b) Accounting is a part of book-keeping.
c) The term book-keeping and accounting can be used interchangeably.
d) Book keeping is not a part of accounting.

a) Book Keeping is a part of Accounting.


Q4. IFRS (International Financial reporting standards) are based on:

a) Fair value
b) Historical cost
c) Both historical cost and fair value.
d) None of the options

a) Fair value


Q5. IFRS are:

a) Principles based accounting standards
b) Rule based accounting standards
c) Partially rule and partially principles
d) None of the options

a) Principles based accounting standards


Q6. IAS adopted by IASB and still in force are:

a) 29
b) 41
c) 9
d) 10

a) 29


Q7. IASB (International Accounting Standards Board) upon coming into existence has adopted:

a) All IAS and SIC (Standing Interpretation Boar
b) Some IAS and SIC
c) None of the options
d) None of the IAS and SIC

a) All IAS and SIC (Standing Interpretation Boar


Q8. A liability arises because of:

a) Credit transaction
b) Cash transaction
c) None of the options
d) Cash and credit transaction

a) Credit transaction


Q9. Which one of the following statement is correct?

a) Income = Revenue Expenses.
b) Income = Expenses – Revenue.
c) Expenses = Income – Revenue.
d) Income= Profits – Expenses.

a) Income = Revenue Expenses.


Q10. The sum of Liabilities and Capital is-

(a) Expense
(b) Income
(c) Drawings
(d) Assets.

(d) Assets.


Q11. In India, the accounting standard board was set up in the year-

(a) 1972
(b) 1977
(c) 1956
(d) 1932.

(d) 1932.


Q12. The basic accounting postulates are denoted by –

(a) Concepts
(b) Book – keeping
(c) Accounting standards
(d) None of these.

(b) Book – keeping


Q13. The amount drawn by businessmen for his personal use is-

(a) Capital
(b) Drawing
(c) Expenditure
(d) Loss.

(a) Capital


Q14. Meaning of credibility of going concern is :

(a) Closing of business
(b) Opening of business
(c) Continuing of business
(d) None of these.

(b) Opening of business


Q15. During the lifetime of an entity accounting produce financial statements in accordance with which basic accounting concept:

(a) Conservation
(b) Matching
(c) Accounting period
(d) None of the above

(c) Accounting period


Q16. When information about two difference enterprises have been prepared presented in a similar manner the information exhibits the characteristic of:

(a) Verifiability
(b) Relevance
(c) Reliability
(d) None of the above

(d) None of the above


Q17. A concept that a business enterprise will not be sold or liquidated in the near future is known as :

(a) Going concern
(b) Economic entity
(c) Monetary unit
(d) None of the above

(a) Going concern


Q18. The primary qualities that make accounting information useful for decision-making are

(a) Relevance and freedom from bias
(b) Reliability and comparability
(c) Comparability and consistency
(d) None of the above

(b) Reliability and comparability


Fill in the blank with correct word

Q19. Recognition of expenses in the same period as associated revenues is called ………………. concept.

Matching


Q20. The accounting concept that refers to the tendency of accountants to resolve uncertainty and doubt in favour of understating assets and revenues and overstating liabilities and expenses is known as ………………….

Conservatism


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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