CBSE Class 11 Accountancy Financial Statements - I MCQs Set 04

Question: Manufacturing expenses are treated as………
a) Capital Expenditure
b) Direct Expenses
c) Indirect Expenses
d) None of the options
Answer: b

Question: Calculate Gross profit if rate of gross profit is 10% on sales and cost of goods sold is Rs. 90000.
a) 10000
b) 8000
c) Rs. 9000
d) None of the options
Answer: a

Question: According to Principle of Conservatism
a) Provision is made for bad and doubtful debts
b) Deprecation is charged on assets
c) Recording is made for outstanding expenses
d) Profit & Loss account is made for full year
Answer: a

Question: Calculate Gross profit if rate of gross profit is 10% on sales and Sales is Rs. 90000
a) 8500
b) 9000
c) Rs. 10000
d) None of the options
Answer: b

Question: Closing stock is valued at
a) Cost price
b) Cost price or market price whichever is less
c) Market price
d) Cost price or market price whichever is higher
Answer: b

Question: If Rent paid in advance Rs. 7000 given in Trial balance. It will be shown in
a) Liabilities
b) Assets
c) Profit & Loss Account (Debit)
d) Trading Account (debit)
Answer: b

Question: If Accrued Interest Rs. 2000 given in Trial balance. It will be shown in
a) Liabilities
b) Assets
c) Profit & Loss Account (Credit)
d) Trading Account (Credit)
Answer: b

Question: Which of the following is another name of Earning before Income Tax (EBIT)
a) Operating Profit
b) Gross Profit
c) Net Profit
d) None of the options
Answer: c

Question: Which of the following account is affected from the Drawing of Cash in Sole proprietorship?
a) Shareholder’s Account
b) Capital Account
c) Liabilities Account
d) Expense Account
Answer: b

Question: Carriage inward is shown in
a) Balance Sheet
b) Trading Account
c) Profit & Loss Account
d) None of the options
Answer: b

Question: Depreciation for current year given in Trial balance. Its treatment will be
a) Debited to Trading Account
b) Deducted from Fixed Assets in Balance Sheet
c) Debited to Profit & Loss Account
d) Debited to Profit & Loss Account and Deducted from Fixed Assets in Balance Sheet (D)
Answer: d

Question: Closing Stock given inside the Trial balance is shown only in……………
a) Balance Sheet
b) Trading Account
c) Profit & Loss Account
d) None of the options
Answer: a

Fill In The Blanks

Question: Debit balance of profit and loss A/C represents ………………………….. .
Answer: Net Loss

Question: Credit balance of profit & loss A/C represents ………………….. .
Answer: Net Profit

Question: ………………….. type of liability comes last in Liabilities side of Balance Sheet as per liquidity order.
Answer: Non-Current Liability

Question: Rent Account is shown in ………………………. Account.
Answer: Profit & Loss

Question: Unearned commission mentioned in Trial balance will be transferred to ………………………. .
Answer: balance Sheet

Question: Indirect expenses consists of……….…& ………
Answer: Operating & Non-Operating expenses

Question: Direct expenses are a Debited to …………………. Account.
Answer: Trading

Question: Assets & Liabilities arranged in a proper order is known as …………………. .
Answer: Marshalling of Assets

Question: Amortization is used for ………………………..assets.
Answer: Intangible

True/False.

Question: Gross profit is calculated from trading accounts.
Answer: True

Question: Interest paid is shown on credit side of Profit & Loss account.
Answer: False

Question: Wages paid for erection of machinery is debited to P&L a/c)
Answer: False

Question: The net profit of a firm is Rs. 44,000 before charging his commission. The commission payable to manager before charging at 5% is Rs 2,200.
Answer: True

Question: Net profit is calculated from trading accounts profit.
Answer: False

Question: Profit & Loss a/c is also known as Factory A/c)
Answer: False

Question: Apprentice premium is always debited to P&L a/c
Answer: False

Match The Following

Question: Match the following:
1. Profit and Loss A/c                         a) Position statement
2. Balance sheet                                b) Reconciliation statement
3. Bank reconciliation statement        c) Income statement
Answer: 1-C, 2-A, 3-B

Question: Match the below expenses with their respective expense head:
    Expense                                  Expense Type
1. Non-Cash expenses            a) Payment of salaries
2. Cash expenses                    b) Depreciation and amortization
Answer: 1-B, 2-A

Question:Match the type of entries with purpose:
     Entries                               Purpose
1. Journal Entry                     a) Entry in which cash A/c and Bank A/c are used in opposite
2. Adjustment entry                b) For transferring of balance to next year set of books
3. Contra entry                       c) For closing the accounts of current year
4. Opening Entry                    d) For recording a transaction
5. Closing Entry                      e) Entry for adjustment purpose.
Answer: 1-D, 2-E, 3-A, 4-B, 5-C

Question: Match the following with their format
1. Trading and profit and loss A/c           a) As on …….
2. Balance sheet                                     b) for the year ended……….
3. Trail Balance                                     c) As at………………
Answer: 1-B, 2-C, 3-A

Question: Match the following account with their respective accounts:
Items Account
1. Profit on sale of fixed assets        a) Trading A/c
2. Bad debts recovered                    b) Profit and Loss A/c
3. Carriage on sales
4. Carriage on purchase
Answer: 3-B; 4-A