CBSE Class 11 Accountancy Financial Statements - I MCQs Set E

Question: The financial statements consist of:
a) Trial balance
b) Profit and Loss account
c) Balance sheet
d) (a) & (c)
e) (b) & (c)
Answer: e

Question: While calculating operating profit, the following are not taken into account.
a) Normal transactions
b) Abnormal items
c) Expenses of a purely financial nature
d) (b) & (c)
e) (a) & (c)
Answer: c

Question: Choose the correct chronological order of ascertainment of the following profits from the profit and loss account:
a) Operating Profit, Net Profit, Gross Profit
b) Operating Profit, Gross Profit, Net Profit
c) Gross Profit, Operating Profit, Net Profit
d) Gross Profit, Net Profit, Operating Profit
Answer: c

Question: Which of the following is correct:
a) Operating profit = Operating profit – Non-operating expenses – Non-operating incomes
b) Operating profit = Net profit + Non-operating expenses + Non-operating incomes
c) Operating profit = Net profit + Non-operating expenses – Non-operating incomes
d) Operating profit = Net profit – Non-operating expenses + Non-operating incomes
Answer: c

Question: Revenue Expenditure is intended to benefit
a) Past period
b) Current period
c) Future period
d) None of the options
Answer: b

Question: Which type of expenses is written in Profit & Loss Account?
a) Direct
b) Indirect
c) Direct & Indirect
d) None of the options
Answer: b

Question: Preliminary exp. fall in which category
a) Revenue Receipt
b) Deferred Revenue expenditure
c) Intangible assets
d) Deferred Capital receipts
Answer: b

Question: The loss of sale of old machinery should be debited to :
a) Profit& Loss Account
b) Trading Account
c) Machinery Account
d) None of the options
Answer: a

Question: If Salary payable Rs. 9000 given in Trial balance. It will be shown in
a) Liabilities
b) Assets
c) Profit & Loss Account (Debit)
d) Trading Account (debit)
Answer: a

Question: Which statement tells us about the financial position of the business?
a) Trading Account
b) Profit & Loss Account
c) Trial Balance
d) Balance Sheet
Answer: d

Question: Land & building owned by a firm should be classified as:
a) Fixed Assets
b) Current Assets
c) Fictitious Assets
d) None of the options
Answer: a

Question: Which is the position statement?
a) Trading Account
b) Profit & Loss Account
c) Balance Sheet
d) None of the options
Answer: c

Question: Return inward appearing in Trial balance are deducted from
a) Sales
b) Purchase
c) Return outward
d) Capital
Answer: a

Question: If opening stock is Rs. 30000, closing stock is Rs. 40000, Purchases are Rs. 80000, Direct Expenses Rs. 30000. What will be the value of Cost of Goods sold
a) 100000
b) 120000
c) 90000
d) 80000
Answer: a

Question: Return outward appearing in Trial balance are deducted from
a) Sales
b) Purchase
c) Return outward
d) Capital
Answer: b

Question: Wages paid for erection of Machinery are debited to
a) Deferred wages account
b) Machinery Account
c) Profit & Loss Account
d) Wages Account
Answer: b

Fill In The Blanks 

Question: Wages & Salaries are debited to ………………….. Account.
Answer: Trading

Question: Profit and loss account is prepared on ……………….basis.
Answer: accrual

Question: Assets & Liabilities of business are shown in ………………. .
Answer: balance sheet

Question: Salaries & Wages are debited to ……………………Account.
Answer: Profit & Loss

Question: Net sales Rs. 8,00,000, Gross profit 25% on cost. Amount of cost of goods sold is Rs ………………….. .
Answer: 6,40,000

Question: Statement of balances prepared from ledger is known as ……………… .
Answer: Trial balance

Question: If net loss is Rs. 60,000, operating expenses are Rs. 90,000. The amount of gross profit will be Rs ……… .
Answer: 30,000

Question: …………………. type of liability comes last in Liabilities side of Balance Sheet as per order of permanency.
Answer: current Liability

Question: A manager is entitled to a commission of 12% on net profit after charging such commission. Net profit before charging commission is Rs. 67,200. The commission payable to manager is Rs. …………… . 720020. Wages & Salaries are debited to ………………….. Account.
Answer: Trading

Question: If closing stock is not appearing in …………………………., it will appear in Trading account and balance Sheet.
Answer: Trial balance

True/False.

Question: Trial balance is a part of final accounts.
Answer: False

Question: GST paid is debited to P&L account.
Answer: False

Question: The manager is entitled for a commission of 10% on net profit after charging his commission . The net profit for the year ended is Rs.66,000. the commission payable to him is Rs 6000.
Answer: True

Question: Unearned income is added to its concerned expense.
Answer: False

Question: Income tax paid is debited to P&L a/c)
Answer: False

Question: The balance of debtor in balance sheet shows Rs 40,000, the provision is to be maintained at 10% . The amount of provision will be Rs 4,000 .
Answer: True

Question: Trading account is also known as manufacturing account.
Answer: False

Question: Cost of goods sold can be calculated by deducting adjusted purchase from value of sales.
Answer: True 

Match The Following  

Question: Match the activity with their respective heads:
  Activity                        Heading
1. Recording                 a) Profit and Loss A/c and Balance sheet
2. Classifying                b) Trial Balance
3. Summarizing            c) Ledger
4. Interpretation           d) Journal
Answer: 1-D, 2-C, 3-B, 4-A

Question: Match the below items with respective A/c where it transferred:
1. Opening stock is debited to              a) Trading A/c
2. Closing stock is credited to               b) Profit and Loss A/c
3. Discount on purchase is credited
4. Carriage on purchase debited to
Answer: 4-A, 3-B

Question: Match the following:
1. Accrued Income                   a) Expense
2. Rent                                     b) Assets
3. Out-standing salary             c) Income
4. Discount received                d) Liability
Answer: 1-B, 2-A, 3-D, 4-C

Question. Match the following
    Expenditure                                          Definition
1. Revenue Expenditure                        a) Expenditure incurred on purchase of fixed assets or increasing the value of fixed assets
2. Capital Expenditure                           b) Expenditure benefit of which derived over the years.
3. Deferred Revenue Expenditure         c) Expenditure benefit of which exhausted within the accounting period
Answer: 1-C, 2-A, 3-B

Question: Match the below expenses with their respective expense head:
     Expense                               Expense Type
1. Salaries And wages           a) Direct Expenses
2. Interest on Loan                 b) Operating Expenses
3. Wages and salaries           c) Non-operating Expenses
Answer: 1-B,2-C,3-A

Question: Match the below items
   Items                                                        Types
1. Final Accounts                                     a) Ledger
2. Books of final Entry                             b) Cash Book
3. Subsidiary and principal Book            c) Purchase book
4. Principal Book                                    d) Profit and Loss A/c and Balance sheet
Answer: 1-D,2-A,3-B,4-A