CBSE Class 11 Accountancy Introduction To Accounting Assignment Set A

Very Short Answer Type Questions:

Q1. “Accounting records transactions and events that can be measured in money terms”. Is this in your opinion, a limitation of accounting or an advantage? Support your views with reasons.

Q2. Resignation by a Marketing Manager is not recorded in the books of Accounts. Why?

Q3. Which type of accounting information reveals profit earned or loss incurred?

Q4. Under the ‘Double Entry System’ every transaction has two aspects-debit and credit of equal amounts. It is because of this reason that the Trial Balance should always agree. Are you in agreement with this statement? Give your reasoning.

Q5. Define Accounting.

Q6. Define Book keeping.

Q7. State what is the end product of Financial Accounting.

Q8. Define Single Entry System.

Q9. Define Double Entry System.

Objective type questions:

1. Select the best alternative:

(i) Which of the following is not recorded in the books of Accounts?

(a) Sales of goods (b) Payment of salary (c) Quality of staff.

(ii) Transactions are posted into Ledger Account from

(a) Vouchers (b) Journal book (c) None of these.

(iii) Which of the following is not a business transaction?

(a) Purchase of goods for resale amounted to ₹ 20,000.

(b) Paid salaries & wages amounted to ₹ 5,000.

(c) Purchased LCD for personal use.

(iv) Which system of accounting is more widely used:

(a) Single entry system (b) Double entry system.

Short Answer Type Questions:

Q1. Why are the following parties interested in accounting information:

(a) Investor (b) Government (c) Management (d) Owners (e) Banks & financial institutions (e) Employees & Workers.

Q2.Explain the various functions of Accounting.

Q3. Give any five differences between Book Keeping & Accounting.

Q4. Explain any five objectives of Accounting.

Q5. Explain any five advantages of Accounting.

Q6. Explain any five limitations of Accounting.

Q7. Give any three advantages of Double Entry System.

Q8. Give any three disadvantages of Double Entry System.

Chapter-Basic Accounting Terms

Very Short Answer Type Questions:

Q1. Name any four fixed assets.

Q2. Give any two examples of Intangible Assets.

Q3. Give any two examples of Current Assets.

Q4. A firm earns revenue of ₹ 75,000 and the expenses to earn this revenue are ₹54,000. Calculate its income.

Q5. What is a cash transaction?

Q6. What is a credit transaction?

Important Questions for NCERT Class 11 Accountancy Introduction to Accounting

Question. Which of the following transactions is of a financial character and will be recorded in the business?   
(A) Goods taken from the business by the proprietor for her personal use
(B) Interviewing the candidates for employment
(C) Sale of Household furniture Rs.5,000
(D) Received an order for sales of goods

Answer : A


Question. Book-keeping is mainly concerned with :   
(A) Recording of financial data
(B) Designing the systems of summarising the recorded data
(C) Interpreting the data for internal and external users
(D) Preparation of financial statements of the business enterprise

Answer : A


Question. Which of the following is not a sub-field of accounting?   
(A) Financial accounting
(B) Book Keeping
(C) Management accounting
(D) Cost Accounting

Answer : B

Question Which of the following is not an internal user of financial statements?   
(a) Board of Directors
(b) Managers
(c) Employees
(d) Lenders

Answer : D


Question Which of the following is not a characteristic of accounting?   
(a) Recording non-monetary transactions
(b) Classifying
(c) Analysis
(d) Summarising

Answer : A


Question. Which of the following is the most relevant accounting information for taxation authorities?  
(A) Cash Balance of the firm
(B) Book Value of the Fixed Assets
(C) Credit Sales of the year
(D) Profit generated during the year

Answer : D


Question. Which of the following limitations of accounting states that accounts may be manipulated to conceal vital facts :   
(A) Accounting is not fully exact
(B) Accounting may lead to window dressing
(C) Accounting ignores price level changes
(D) Accounting ignores qualitative elements

Answer : B

Question Book Keeping and Accounting  
(a) means same and are used interchangeably.
(b) does not mean same and are not used interchangeably.
(e) means both (a) and (b).
(d) None of the above.

Answer : B

Question Expenditure of revenue nature that gives benefit for more than one accounting period is categorised as
(a) Capital Expenditure.
(b) Revenue Expenditure.
(c) Deferred Revenue Expenditure.
(d) None of these.

Answer :  C


Question A person who owes money to a firm against goods sold is called a
(a) creditor.
(b) debtor.
(c) Both (a) and (b)
(d) None of these.

Answer :  B


Question A person to whom money is owed by a firm for purchase of goods is called a
(a) creditor.
(b) debtor.
(c) Both (a) and (b)
(d) None of these.

Answer :  A


Question Purchase refers to the purchase of
(a) goods for resale.
(b) stationery for office use.
(c) assets for the factory.
(d) None of the above.

Answer :  A


Question A liability arises because of
(a) cash transactions.
(b) credit transactions.
(c) cash as well as credit transactions.
(d) None of these.

Answer :  B


Question The amount invested by the proprietor in a business is called
(a) capital.
(b) cash.
(c) revenues.
(d) loan.

Answer :  A

Question Which of the following is an asset?
(a) Machinery
(b) Purchases
(c) Sales Return
(d) Interest Received

Answer :  A

Please click the below link to access CBSE Class 11 Accountancy Introduction To Accounting Assignment Set A