CBSE Class 11 Accountancy Introduction To Accounting Assignment Set 01

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

CBSE Class 11 Accountancy Chapter 1 Introduction To Accounting And Basic Fill in The Blanks

Question. The goods unsold at the end of the accounting year is called------------.
Answer. Closing stock/inventory

Question. The amount which is paid for increasing profit earning capacity of business is called ------------- .
Answer. Capital Expenditure

Question. Ethical or environmental activities of the firm are related which responsibility of business -----------.
Answer. Social responsibility

Question. Monetary benefit received from sale of noncurrent assets is called---------.
Answer. Gain

Question. Amount spent on cost of goods sold during a year and no benefit received on the same leads to----------.
Answer. Loss

Question. The term purchase is used for purchase of goods only but not for purchase of----------.
Answer. Fixed assets

Question. Amount not recovered from trade receivables on account there insolvency is known as ----------- .
Answer. Bad debts

Question. Amount paid for the purchase of goods is an example of-------------.
Answer. Revenue expenditure

Question. Amount of cash invested in business is called capital whereas amount withdrawn from the business for personal use is known as-------------.
Answer. Drawings

Question. The assets which are used in the business for a longer period of time are called----------.
Answer. Fixed assets

Question. Bad debts arises due to sale of goods on credit as well as-------------.
Answer. Insolvency

CBSE Class 11 Accountancy Chapter 1 Introduction To Accounting And Basic True and False

1. Accounting provides in formations which is useful to management for making economic decisions. (True)
2. Trade Discount is allowed to persuade the buyer to buy more goods. (True)
3. A transaction is any event or condition, such as buying or selling that must be recorded in the financial records of a business. (True)
4. Accounting ascertains the progress of the business from year to year. (True)
5. Drawing increases the Capital of the Owner. (False)
6. Trade Payable includes Creditors & Bills Receivable. (False)
7. Trade Discount is deducted from list price of the product. (True)
8. Cash Discount is allowed to the customers for making prompt payment. (True)
9. Goodwill is Tangible Assets. (False)
10. Profit decreases the investment of the Owner. (False)
11. Bad Debts arise from Credit Sales. (True)
12. Account Receivables are considered as Income. (False)
13. Complete process of Accounting is called Accounting Circle. (False)

CBSE Class 11 Accountancy Chapter 1 Introduction To Accounting And Basic MCQs

Question. Amount received from sale of goods is:
(a) Revenue receipts
(b) Capitalize receipts
(c) a and b both
(d) None of these
Answer: Revenue receipts 

Question. A language of business is known as:
(a) Accountancy
(b) Accounting
(c) a and b both
(d) All of these
Answer: Accounting

Question. Purchases refer to the purchase of:
(a) Stationery for office use
(b) Goods for resale
(c) Assets for the factory
(d) none of these
Answer: Goods for resale

Question. Which of the following is not a fixed assets:
(a) Building
(b) Land
(c) Machinery
(d) B/R
Answer: B/R 

Question. Which of the following is not a current assets:
(a) Plant
(b) Debtors
(c) B/R
(d) Stock
Answer: Plant 

Question. The amount of cash or goods which is withdrawal by proprietor from business for its private uses is called:
(a) Capital
(b) Expenses
(c) Drawings
(d) Expenditure
Answer: Drawings

Question. Which branch is used for calculating cost of product is:
(a) Financial Accounting
(b) Management Accounting
(c) Cost Accounting
(d) All of these
Answer: Cost Accounting

Question. Who is the father of Accounting:
(a) Luca Pacioli
(b) Charles Babeje
(c) Henry Fayol
(d) F. W. Tailor
Answer: Luca Pacioli

Question. Business organization involves:
(a) Social event
(b) Economic event
(c) Welfare event
(d) None of these
Answer: Economic event

Question. Which one is a capital transaction?
(a) Purchase of goods
(b) Payment of wages
(c) Sales of goods
(d) Purchase of machinery
Answer: Purchase of machinery

Question. The financial information provided by an accounting system is needed by:
(a) Owners
(b) Creditors
(c) Management
(d) All of these
Answer: All of these 

Question. A document prepared to authorize and describe an expenditure is termed as:
(a) Cash memo
(b) Voucher
(c) Bill
(d) Debit
Answer: Voucher 

Question. A percentage reduction from the list price of merchandise allowed to retailers by whole seller is called:
(a) Commission
(b) Cash discount
(c) Trade discount
(d) Allowance
Answer: Trade discount

CBSE Class 11 Accountancy Chapter 1 Introduction To Accounting And Basic Match The Following

Question.

1. Financial accounting          A. Analysis and interpretation of information
2. Last step of accounting      B. Help in assist the managers
                                               C. Keep a record of all financial transactions
                                               D. Recording the transactions
Answer. 1.C ; 2.A

Question.
1. Comparability            A. Payable within a year
2. Long term liability      B. Common unit of measurement
                                      C. payable after a period of one year
                                      D. Common values is must
Answer. 1.B ; 2.C

Question.
1. Transactions      A. Excess of revenues over its related expenses
2. Profit                  B. Winning a court case
                              C. Involving values between two or more entities
Answer.1.C ; 2A

Question. 
1. Sales               A. Total revenue from selling of an asset
2. Liabilities        B. Properties of an enterprise
                          C. Obligations of an enterprise
                          D. Total revenue from goods and services
Answer.1. D ; 2.C

Question.
1. Cost accounting                   A. Help in assist the managers
2. Management Accounting     B. Timeliness
3. Relevance
Answer. 2.A ; 3.B

Question.
1. Deferred revenue expenditure       A. Manipulation of the accounts book
2. Window dressing                           B. Salary
                                                          C. Heavy advertisement expenditure
                                                          D. Faithful presentation
Answer.1.C ; 2.A

Question.
1. Reliability               A. Primary stage
2. Book keeping        B. Faithfulness
Answer. 1.B ; 2.A

Question.
1. Recording         A. Tangible asset
2. Goodwill           B. Journal
                            C. Intangible asset
                            D. Ledger
Answer. 1.B ; 2.C

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