CBSE Class 11 Accountancy Financial Statements - I MCQs Set B

Question: Which of these items will appear in a manufacturing A/c
a) Power and steam A/c
b) Salary and wages A/c
c) Carriage outward
d) Goodwill written off
Answer: a

Question: Which of these is an appropriation of profit
a) Provision for payment of bonus
b) Provision for taxation
c) Provision for dividend
d) Provision for doubtful debts
Answer: c

Question: All revenue receipts and expenditure are shown in
a) Balance sheet
b) Trading and profit and loss A/c
c) Cash flow statement
d) Statement of affairs
Answer: b

Question: Which of the following is not the part of Financial Statements?
a) Trial Balance
b) Trading Account
c) Profit and Loss Account
d) Balance Sheet
Answer: a

Question: Balance Sheet is prepared:
a) For a particular period
b) On a particular date
c) For the whole year
d) None of the options
Answer: b

Question: Closing stock lying unsold with the consignee is valued at
a) Cost price
b) Market price
c) Realizable price
d) Least of cost or net realizable value
Answer: d

Question: Excess of debit in Profit and Loss Account is called:
a) Net Profit
b) Net Loss
c) Gross Profit
d) Gross LOSS
Answer: b

Question: Which of the following is the element of financial statements?
a) Balance Sheet
b) Profit & Loss A/c
c) Both Balance Sheet and Profit & Loss A/c
d) None of the options
Answer: c

Question: Closing stock should be valued at cost or market price, whichever is lower. What resembles the nature of the statement above?
a) Postulates
b) Personal Judgements
c) Accounting Conventions
d) Recorded Facts
Answer: c

Question: Prepaid expenses are shown in-
a) Liability side
b) Asset side
c) Assets or Liability side
d) None of the options
Answer: b

Question: A firm has goods worth Rs.120,000 available for sale. If the firm intends to earn a profit of 20% of total sales. What should be the total selling price of the goods available for sale. What is % mark up on the cost.
a) 20%
b) 30%
c) 25%
d) 15%
Answer: c

Question: The following is the entry for making a provision for bad debts:
a) Debit Provision for Bad Debts A/c and Credit Creditor A/c
b) Debit Provision for Bad Debts A/c and Credit Profit and Loss A/c
c) Debit Provision for Bad Debts A/c and Credit Bad Debts A/c
d) Debit Profit and Loss A/c and Credit Provision for Bad Debts A/c
Answer: d

Question: Financial Statements includes
a) Trial Balance
b) Trading and Profit and Loss Account
c) Balance Sheet
d) Trading and Profit and Loss Account and Balance Sheet
Answer: d

Question: Which item is shown under the head long-term borrowings while preparing the balance sheet?
a) Trade Payables
b) Short Term Loan
c) Debentures
d) Bank Overdraft
Answer: c

Question: Capital Receipts and Revenue Receipts
a) are distinguished
b) are not distinguished
c) may or may not be distinguished
d) must not be distinguished
Answer: b

Question: Which of the following is correct?
a) Operating Profit = Net Profit + Non-operating Expenses - Non-operating Income
b) Operating Profit = Net Profit + Non-operating Expenses + Non-operating Income
c) Operating Profit = Net Profit + Non-operating Expenses - Non-operating Income
d) Operating Profit = Net Profit - Non-operating Expenses + Non-operating Income
Answer: c

Question: Capital Expenditure and Revenue Expenditure
a) are distinguished
b) are not distinguished
c) may or may not be distinguished
d) must not be distinguished
Answer: a

Question: Following are the Financial statement except:
a) Audit report
b) Balance sheet
c) Income statement
d) Cash Flow statement
Answer: a

Question: Computers purchased for re-sale is
a) Capital expenditure.
b) Revenue Expenditure.
c) Deferred Revenue Expenditure.
d) None of the options
Answer: b

Question: The Profit and Loss Account reveals:
a) Financial results of the business for a period
b) Financial position of the business for a period
c) Financial results of the business on a particular date
d) Cost of goods sold during the business
Answer: a

Question: Calculate the gross profit if rate of gross profit is 25% on sales and cost of goods sold are Rs.1,80,000
a) Rs.60,000
b) Rs.36,000
c) Rs.45,000
d) Rs.30,000
Answer: a

Question: Cost of Goods Sold Rs.1,50,000; Closing Stock Rs.40,000; Opening Stock Rs.60,000; Amount of purchase will be
a) Rs.1,30,000
b) Rs.1,70,000
c) Rs.50,000
d) None of the options
Answer: a

Question: All Direct Expenses are shows in:
a) Trading Account
b) Profit & Loss Account
c) Balance sheet
d) None of the options
Answer: a

Question: Which statement shows financial position of the business?
a) Trading Account
b) Profit and Loss Account
c) Balance Sheet
d) Trial Balance
Answer: c

Question: If sales are Rs.2,000 and the rate of gross profit on cost of goods sold is 25%, then the cost of goods sold will be:
a) Rs.1,600
b) Rs.1,500
c) Rs.1,700
d) Rs.1,800
Answer: a

Question: Goodwill is:
a) Current Asset
b) Tangible Asset
c) Intangible Asset
d) Fictitious Asset
Answer: c

Question: Carriage inward is shown in
a) Trading A/c
b) Profit and loss A/c
c) Profit and loss appropriation A/c
d) Profit and loss adjustment A/c
Answer: a

Question: Goods outward book is maintained to record
a) Returns of trading goods sold on credit basis
b) Returns of all goods purchased
c) Returns of trading goods purchased on credit
d) Returns of capital goods
Answer: c

Question: Income statement is prepared to ascertain of:
a) Gross profit/loss
b) Net profit/loss
c) Both A and B
d) None of the options
Answer: c

Question: Computation of Net worth excludes
a) Long term debts
b) Equity share capital
c) Preference share capital
d) Reserves and surplus
Answer: a

Question: If net sales is Rs.36,000, his gross profit is 60% of sales and net profit is 40% of sales, his expenses are
a) Rs.14,200
b) Rs.8,800
c) Rs.14,600
d) Rs.7,200
Answer: d

Question: Discount received appears in:
a) Credit side of Balance sheet
b) Debit side of Balance sheet
c) Debit side of Profit and loss account
d) Credit side of Profit and loss account
Answer: d

Question: Returns Inward in the Trial Balance is deducted from
a) Purchases
b) Sales
c) Returns outward
d) Gross profit
Answer: b

Question: Arrange cash, building goodwill, debtors, and machine in the Balance Sheet in order of liquidity.
a) Debtors, Cash, Building Goodwill, Machine
b) Cash, Debtors, Machine. Building, Goodwill
c) Cash, Building Goodwill, Debtors, Cash Machine
d) Cash, Goodwill, Debtors, Machine. Building
Answer: b

Question: Closing stock shown inside the Trial Balance is shown in:
a) Trading Account
b) Profit and Loss Account
c) Balance Sheet
d) None of the options
Answer: c

Question: Computers owned by a firm are classified as:
a) Tangible Assets
b) Current Assets
c) Liquid Assets
d) Intangible Assets
Answer: a

Question: From the following details calculate the value of closing stock at cost using adjusted selling price method
a) Gross purchases (excluding discount and sales tax) Rs 300000
b) Trade discount @8%
c) Sales tax 4%
d) Freight and insurance Rs 10000
Answer: b

Question: Direct Expenses are entered in:
a) Trading Account
b) Profit & Loss Account
c) Balance Sheet
d) None of the options
Answer: a

Question: Goodwill is a-
a) Fixed Asset
b) Current Asset
c) Fictitious Asset
d) None of the options
Answer: a

Question: Receipt and payment account is a summary of-
a) Income & Expenditure account
b) Profit & Loss A/c
c) Cash-book
d) None of the options
Answer: c