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. Which method of depreciation suffers from the limitation of unequal burden on profit and loss account?
a) Fixed Instalment Method
b) Reducing Balance Method
c) Depletion Method
d) Annuity method
a) Fixed Instalment Method
Q2. Which method of charging depreciation is accepted by Income Tax Act?
a) Written down value method
b) Both Written down value method and Straight Line method
c) Straight Line method
d) None of the above
a) Written down value method
Q3. Depreciation is a process of:
a) Allocation of cost
b) None of the above
c) Valuation of asset
d) Both valuation of asset and allocation of cost
a) Allocation of cost
Q4. Depreciation is which of the following expenditure:
a) Non-cash
b) Both cash and non-cash
c) Cash
d) None of the above
a) Non-cash
Q5. Which of the following statements is NOT true about Provisions?
a) It is an appropriation of profit.
b) It is a charge against profits.
c) It is shown on the liability side of Balance sheet.
d) It is discretionary as a matter of financial prudence.
a) It is an appropriation of profit.
Q6. Which of the following statements is NOT true about Reserves?
a) It is a charge against profits.
b) It is an appropriation of profit.
c) It is shown on the liability side of Balance sheet.
d) It is discretionary as a matter of financial prudence.
a) It is a charge against profits.
Q7. If the amount of any known liability cannot be determined with substantial accuracy:
a) A provision should be created.
b) A Contingent liability should be created.
c) A definite liability should be created.
d) A reserve should be created.
a) A provision should be created.
Q8. Under which method the amount of depreciation remains same year after year?
a) Fixed Installment Method
b) Reducing Balance Method
c) Annuity method
d) Depletion Method
a) Fixed Installment Method
Q9. As per the Original Cost method which is the correct formula for calculating Annual depreciation?
a) Depreciation = Cost of asset Scrap value/ Estimated life of asset
b) Depreciation = Scrap value – Cost of asset / Estimated life of asset
c) Depreciation = Cost of asset – Market value / Estimated life of asset
d) Depreciation = Cost of asset – Scrap value/ Market value of asset
a) Depreciation = Cost of asset Scrap value/ Estimated life of asset
Q10. Asset Disposal A/c is prepared when :
(a) Provision for Depreciation A/c is prepared
(b) Asset A/c is prepared
(c) Profit & Loss A/c is prepared
(d) Depreciation A/c is prepared
(a) Provision for Depreciation A/c is prepared
Q11.Which of the following is the example of Capital Reserve?
(a) Workmen’s Compensation Fund
(b) None of these
(c) Premium Received on issue of shares or debentures
(d) General Reserve
(c) Premium Received on issue of shares or debentures
Q12. Which of the following is the example of Revenue Reserve?
(a) Profit on Redemption of Debentures
(b) Profit on Revaluation of Fixed
(c) Investment Fluctuation Fund
(d) Profit on Re-issue of forfeited shares
(c) Investment Fluctuation Fund
Q13. Dividend Equalisation Reserve is :
(a) Specific Reserve
(b) None of these
(c) Secret Reserve
(d) General Reserve
(a) Specific Reserve
Q14. General Reserves are shown in :
(a) Revaluation Account
(b) Profit and Loss Account
(c) None of these
(d) Balance Sheet
(d) Balance Sheet
Q15. According to Companies Act, 1956 Secret Reserves can be created by:
(a) Only Private Company
(b) Banking and insurance companies
(c) Only Public Company
(d) Companies Registered under Companies Act
(b) Banking and insurance companies
Fill in the correct words
Q16. Depreciation is decline in the value of ………………….
Assets
Q17. Installation, freight and transport expenses are a part of ……………….
Acquisition cost
Q18. Provision is a ………………. against profit.
Charge
Q19. Reserve created for maintaining a stable.rate of dividend is termed as ………………….
Dividend Equilisation Fund
Q20. Depreciation is a non-cash expense.
False
MCQ Questions for Class 11 Accountancy: Financial Accounting
- Chapter1: Introduction to Accounting Class 11 MCQ
- Chapter2:Theory Base of Accounting Class 11 MCQ
- Chapter3: Recording of Transactions 1 Class 11 MCQ
- Chapter4: Recording of Transactions 2 Class 11 MCQ
- Chapter5: Bank Reconciliation Statement Class 11 MCQ
- Chapter6: Trial Balance and Rectification of Errors Class 11 MCQ
- Chapter7: Depreciation, Provisions and Reserves Class 11 MCQ
- Chapter8: Bills of Exchange Class 11 MCQ
- Chapter9: Financial Statements 1 Class 11 MCQ
- Chapter10: Financial Statements 2 Class 11 MCQ
- Chapter11: Accounts from Incomplete Records Class 11 MCQ
- Chapter12: Applications of Computers in Accounting Class 11 MCQ
- Chapter13: Computerised Accounting System Class 11 MCQ
- Chapter14: Structuring Database for Accounting Class 11 MCQ
- Chapter15: Accounting System Using Database Management System Class 11 MCQ
- Chapter16: Accounting for Not-for-Profit Organisation Class 11 MCQ
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.