CBSE Class 11 Accountancy Introduction to Accounting MCQs Set B

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

Question: Goodwill is the assets:
a) Intangible assets
b) Tangible assets
c) Current assets
d) All of the options
Answer: a

Question: What was the capital initially invested?
a) ₹ 10,000
b) ₹ 1,00,000
c) ₹ 1,10,000
d) Can’t be determined
Answer: c

Question: The excess of current assets over the current liabilities is called:
a) Working capital
b) Net current assets
c) Working capital and Net current assets both
d) None of the options
Answer: c

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: c

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

Question: The person who still owes some amount to the business are termed as:
a) Creditors
b) Bills Payable
c) Debtors
d) Bills Receivable
Answer: c

Question: When purchased goods are returned to the suppliers, these returns are termed as ……… .
a) Return inwards
b) Inward returns
c) Return outwards
d) Outward returns
Answer: c

Question: Which is received at the time of making the payment is known as:
a) Trade discount
b) Rebate
c) Cash discount
d) None of the options
Answer: c

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

Question: X is a part of inventory of a firm. X needs further processing for converting into finished products i.e X consists of partly finished goods or semi-finished goods. Identify X.
a) Inventory of raw material
b) Inventory of work-in-progress
c) Inventory of finished goods
d) Inventory of stock-in-trade
Answer: b

Question: Goods purchased for resale are called:
a) Sales
b) Purchases
c) Return inward
d) Return outward
Answer: b

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

Question: The person who draw a bill of exchange is known as:
a) Drawer
b) Drawee
c) Payee
d) Endorsee
Answer: a

Question: Stores is one of the accounting terms used to describe certain kind of materials in the production process. Which of the followng is an example of stores?
a) Lubricants
b) Spare parts of machinery
c) Packingmaterials
d) All of the options
Answer: d

Question: Which type of liability is discussed inthe passage?
a) Non-current
b) Current
c) Both Non-current and Current
d) Can’t be determined
Answer: b

Question: Current liabilities are liabilities that are payable with in:
a) 2 years
b) 1 year
(3) years
d) 4 years
Answer: b

Question: Property of the business is called:
a) Assets
b) Liabilities
c) Expenditure
d) Gain
Answer: a

Question: Which asset is discussed in the line, “The quality of the company’s product was very high and therefore, it could develop a reputation for itself in the market and business was flourishing”?
a) Tangible
b) Intangible
c) Current
d) Both Tangible and Current
Answer: b

Question: Resources minus capital equities is equal to:
a) Assets
b) Equity
c) Revenue
d) Liabilities
Answer: d

Question: Amount or kinds which the proprietor has invested in a business is known as:
a) Investment
b) Capital
c) Assets
d) Liabilities
Answer: b

Question: Shetty talked about which type of users of accounting?
a) Internal users
b) External users
c) Both Internal users and External users
d) None of the options
Answer: c

Question: Bills ……… is an accounting term for bills of exchange drawn on ……… received by way of endorsement from them.
a) payable, debtors
b) receivable, creditors
c) payable, creditors
d) receivable, debtors
Answer: d

Question: Current assets minus current liabilities is equal to:
a) Working capital
b) Profit
c) Capital
d) Loss
Answer: a

Question: Which advantage of accounting is being talked by Shetty in last part of first para?
a) Provides information regarding profit and loss
b) Provides completes and systematic record
c) Enables comparative study
d) Evidence in legal matters
Answer: c

Question: It is the cost incurred in producing goods and services:
a) Expenses
b) Incomes
c) Profit
d) Loss
Answer: a

Fill In The Blanks

Question: Word used for not showing the actual position in the financial statement is —————– .
Answer: Window dressing

Question: Branch of accounting used to calculate cost of product is —————–.
Answer: Cost accounting

Question: Creditors and banks are the example of users of accounting and there known as ——– users.
Answer: External users

Question: The branch of accounting which is concerned with GST and Income tax is known as —————–.
Answer: Tax accounting

Question: Branch of commerce which keeps a record of monetary transactions in a set of books is called ————————.
Answer: Book keeping

Question: Rent outstanding is an example of current liabilities whereas computer software for Microsoft is an example————.
Answer: Current assets

Question: Total revenue earned from goods or services sold during accounting year is called——–.
Answer: Sales

Question: Main function of accounting is to maintain complete and systematic record of —————–
Answer: transactions Business

Question: At the end of the year following balances are given: Capital Rs. 100,000 Assets Rs. 5 00, 000 the amount of outside liabilities will be————–.
Answer: Rs. 4 00, 000

True / False

Question: Accounting is a language of business.
Answer: True

Question: GST is an indirect tax which is levied on the supply of goods & services.
Answer: True

Question: Assets which can be converted into cash within a year is known as Fixed Assets.
Answer: False

Question: Accounting makes records of qualitative aspects of business.
Answer: False

Question: Double Entry System of Accounting means entry in two sets of books.
Answer: False

Question: Accounting helps a firm in the assessment of its correct Tax Liabilities.
Answer: True

Question: Current Assets include Bank Loans.
Answer: False

Question: Those debts that are payable after a period of one year is known as Current Liabilities.
Answer: False

Question: Accounting ascertains the progress of the business from year to year.
Answer: True

Question: Management is external users of Accounting Information.
Answer: False

Question:
1. Entity                                       A.Definite individual existence
2. Classification                          B. Journal
                                                   C. Ledger
                                                   D. Assets
Answer: 1-A ; 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. Assets – External Liabilities                  A. Current Assets – Current Liabilities
2. Working Capital                                    B. Total liabilities
                                                                 C. Capital
                                                                 D. Fixed Assets – Fixed Liabilities
Answer: 1-C; 2-A

Question:
1. Debtors                                                            A. Cash in hand
2. Deployment of funds in the share                    B. Current assets
                                                                             C. Investment
Answer: 1-B; 2-C

Question:
1. Summarisation                               A. Trial balance
2. Goods                                            B. In which business unit is dealing
Answer: 1-A ; 2-B