CBSE Class 11 Accountancy Introduction to Accounting MCQs Set A

Practice CBSE Class 11 Accountancy Introduction to Accounting MCQs Set A provided below. The MCQ Questions for Class 11 Chapter 1 Introduction to Accounting Accountancy with answers and follow the latest CBSE/ NCERT and KVS patterns. Refer to more Chapter-wise MCQs for CBSE Class 11 Accountancy and also download more latest study material for all subjects

MCQ for Class 11 Accountancy Chapter 1 Introduction to Accounting

Class 11 Accountancy students should review the 50 questions and answers to strengthen understanding of core concepts in Chapter 1 Introduction to Accounting

Chapter 1 Introduction to Accounting MCQ Questions Class 11 Accountancy with Answers

MCQs

Question : Recording of the business transaction in a systematic way is called
(a) Accounting
(b) Recording
(c) Journalizing
(d) Bookkeeping
Answer : D

Question : In accounts recording is made of :
(a) Only financial transactions
(b) Only non-financial transactions
(c) Financial and non-financial transactions
(d) Personal transactions of the proprietor 
Answer : A

 
Question : To control the cost of production and distribution is the main field of:
(a) Financial Accounting
(b) Cost Accounting
(c) Auditing
(d) None of these
Answer : B
 
 
Question : Internal users of accounting information are :
(a) Creditors
(b) Potential investors
(c) Managers
(d) Researchers
Answer : C
 
 
Question : Cash, goods or assets invested by the proprietor in the business for earning profit is called-
(a) Profit
(b) Capital
(c) Fixed assets
(d) None of these.
Answer : B
 
 
Question : Which of the following is not a limitations of Accounting ?
(a) Based on Accounting Convention
(b) Evidence in Legal Matters
(c) Incomplete Information
(d) Omission of Qualitative Information 
Answer : B
 
 
Question : The Pioneer of Accounting is:
(a) Arthur Field House
(b) Gitman
(c) William Pickles
(d) Lucas Pacioli
Answer : D
 
 
Question : The supply of goods or services in exchange of money between two parties is known as
(a) Goods transactions
(b) Service transactions
(c) Business transactions
(d) Credit transactions
Answer :  C
 
 
Question : Management accounting provides valuable services to management in performing
(a) All management functions
(b) Controlling functions
(c) Coordinating management functions
(d) None of these
Answer :  A
 
 
Question : Discounts received are
(a) Buyer of goods granted discount by seller
(b) Deducted when we receive cash
(c) Given by us when we sell goods on credit
(d) None of these
Answer : A
 
 
Question : The rights and claims of outsiders/ owner against the asset is called
(a) Owner’s Equity
(b) Liabilities
(c) Equities
(d) None of these
Answer :  C
 
 
Question : Purchase refers to the buying of
(a) Goods for sale.
(b) Stationery for office use.
(c) Goods for the factory.
(d) All of the above.
Answer :  A
 
 
Question : The unsold merchandise of business on particular day is called
(a) Purchase Return
(b) Stock / Inventory
(c) Bad Debts
(d) Sales Return
Answer :  B
 
 
Question : The liability arising from the purchase of goods on credit is called
(a) Creditors
(b) Accounts Receivable
(c) Loan
(d) Payable expenses
Answer :  A
 
 
Question : Book – keeping is-
(a) An art
(b) A science
(c) An art and science both
(d) None of these.
Answer :  C
 
 
Question : Which of these best explains fixed assets?
(a) Are bought to be used in the business
(b) Are expensive items bought for the business
(c) Are items which will not wear out quickly
(d) Are of long life and are not purchased specifically for resale
Answer : D
 
 
Question : Accounting is the language of
(a) Government
(b) Commerce
(c) Trade
(d) Business
Answer :  D
 
 
Question : Which is the last step of accounting as a process of information?
(a) Recording economic events in the books of account.
(b) Preparation of financial Statements
(c) Communication of information.
(d) Analysis and interpretation of information.
Answer :  C
 
 
Question : Use of common unit of measurement and common format of reporting promotes
(a) Comparability
(b) Understandability
(c) Relevance
(d) Reliability
Answer :  A
 
 
Question : Which concept represents the assumption of long period existence of a business
(a) Dual Aspect Concept
(b) Materiality Concept
(c) Going Concern Concept
(d) Matching Concept
Answer :  C
 
 
Question : Which is the last step of accounting as a process of information?
(a) Recording economic events in the books of account.
(b) Preparation of financial statements.
(c) Communication of information.
(d) Analysis and interpretation of information.
Answer :  C
 
 
Question : The paper containing evidence of payment is called
(a) Debit voucher
(b) Debit note
(c) Credit note
(d) Credit voucher
Answer :  A
 
 
Question : The debts which are to be repaid within a short period (a year or less) are referred to as,
(a) Current Liabilities
(b) Fixed liabilities
(c) Contingent liabilities
(d) All the above
Answer : A
 
 
Question : The term expense and expenditure are
(a) Same
(b) Different
(c) Opposite
(d) None of these
Answer :  B
 
 
Question : Deepti wants to buy a building for her business today. Which of the following is the relevant data for his decision?
(a) Similar business acquired the required building in 2000 for Rs. 10,00,000
(b) Building cost details of 2003
(c) Building cost details of 1998
(d) Similar building cost in August, 2005 Rs. 25,00,000
Answer :  A
 
 
Question : Accounting provides data or information on
(a) Income and cost for the managers
(b) Financial conditions of the institutions
(c) Company’s tax liability for a particular year
(d) All the above
Answer : D
 
 
Question : If a trial balance totals do not agree, the difference must be entered in
(a) The Profit and Loss Account
(b) A Nominal Account
(c) The Capital Account
(d) A Suspense Account
Answer : D
 
 
Question : In Accounts Recording Is Made Of:
(a) Only Financial Transactions
(b) Only Non-Financial Transactions
(c) Financial And Non-Financial Transactions
(d) Personal Transactions Of The Proprietor 
Answer : A
 
 
Question : A liability arises because of
(a) Cash transactions
(b) Credit transactions
(c) Cash as well as Credit transactions
(d) None of the above
Answer :  B
 
 
Question : Deepti wants to buy a building for her business today. Which of the following is the relevant data for his decision?
(a) Similar business acquired the required building in 2000 for Rs. 10,00,000
(b) Building cost details of 2003
(c) Building cost details of 1998
(d) Similar building cost in August, 2005 Rs. 25,00,000
Answer : A

 

Question : Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented?
(a) Understandability
(b) Relevance
(c) Comparability
(d) Reliability
Answer : A
 
 
Fill in the Blanks
 
 
Question : Internal users are the _______ of the business entity.
Answer : management/employees
 
Question : _____ users are groups outside the business entity, who uses the information to make decisions about the business entity.
Answer : external
 
Question : The thing which is purchased and sold in the business is called …………….
Answer : Goods
 
Question : Trade discount is given on credit transactions only.
Answer :  False
 
Question :   are the amounts of cash or other assets taken by the owner from the business for personal use.
Answer :  Drawings
 
Question :  Accounts have their existence even after the close of accounting year.
Answer : Real
 
Question : Current liabilities are liabilities that are payable within  .
Answer :  a year
 
Question : The difference between assets and liabilities represents  .
Answer :  owner's equity/capital
 
Question : A person who owns business alon is called  .
Answer : proprietor
 
Question : Goods sold in the course of trading are called  .
Answer : sales
 
Question : Withdrawal of cash or merchandise for personal use is called  .
Answer : drawings
 
Question : The amount invested by the proprietor in a business is called Cash.
Answer : False
 
Question : Goods taken by the owner for personal use are called _________________.
Answer : drawings
 
Question : A person who owes money to the firm for sale of goods is a _______________.
Answer : debtor
 
 

Complete the following sentences with appropriate words

Question : Information in financial reports’is based on _______ transactions.
Answer :
economic

Question : A _______ would most likely use an entities financial report to determine whether or not the business entity is eligible for a loan.
Answer : creditor

Question : ______ users are groups outside the business entity, who uses the information to make decisions about the business entity.
Answer :
external

Question : The process of accounting starts with ______ and ends with _______.
Answer :
 identifying the transactions, communicating information

Question : Identified and measured economic events should be recording in __________ order.
Answer :
chronological

MCQs for Chapter 1 Introduction to Accounting Accountancy Class 11

Students can use these MCQs for Chapter 1 Introduction to Accounting to quickly test their knowledge of the chapter. These multiple-choice questions have been designed as per the latest syllabus for Class 11 Accountancy released by CBSE. Our expert teachers suggest that you should practice daily and solving these objective questions of Chapter 1 Introduction to Accounting to understand the important concepts and better marks in your school tests.

Chapter 1 Introduction to Accounting NCERT Based Objective Questions

Our expert teachers have designed these Accountancy MCQs based on the official NCERT book for Class 11. We have identified all questions from the most important topics that are always asked in exams. After solving these, please compare your choices with our provided answers. For better understanding of Chapter 1 Introduction to Accounting, you should also refer to our NCERT solutions for Class 11 Accountancy created by our team.

Online Practice and Revision for Chapter 1 Introduction to Accounting Accountancy

To prepare for your exams you should also take the Class 11 Accountancy MCQ Test for this chapter on our website. This will help you improve your speed and accuracy and its also free for you. Regular revision of these Accountancy topics will make you an expert in all important chapters of your course.

Where can I access latest CBSE Class 11 Accountancy Introduction to Accounting MCQs Set A?

You can get most exhaustive CBSE Class 11 Accountancy Introduction to Accounting MCQs Set A for free on StudiesToday.com. These MCQs for Class 11 Accountancy are updated for the 2025-26 academic session as per CBSE examination standards.

Are Assertion-Reasoning and Case-Study MCQs included in the Accountancy Class 11 material?

Yes, our CBSE Class 11 Accountancy Introduction to Accounting MCQs Set A include the latest type of questions, such as Assertion-Reasoning and Case-based MCQs. 50% of the CBSE paper is now competency-based.

How do practicing Accountancy MCQs help in scoring full marks in Class 11 exams?

By solving our CBSE Class 11 Accountancy Introduction to Accounting MCQs Set A, Class 11 students can improve their accuracy and speed which is important as objective questions provide a chance to secure 100% marks in the Accountancy.

Do you provide answers and explanations for CBSE Class 11 Accountancy Introduction to Accounting MCQs Set A?

Yes, Accountancy MCQs for Class 11 have answer key and brief explanations to help students understand logic behind the correct option as its important for 2026 competency-focused CBSE exams.

Can I practice these Accountancy Class 11 MCQs online?

Yes, you can also access online interactive tests for CBSE Class 11 Accountancy Introduction to Accounting MCQs Set A on StudiesToday.com as they provide instant answers and score to help you track your progress in Accountancy.