CBSE Class 11 Accountancy Introduction to Accounting MCQs Set 03

Question: In the context of business, profit and gain are the same thing.
a) True
b) False
c) Partially false
d) None of the options
Answer: b

Question: The excess of expenses of a period over its related revenues is termed as:
a) Profit
b) Loss
c) Gain
d) Expenses
Answer: b

Question: Business organization involves:
a) Social event
b) Economic event
c) Welfare event
d) None of the options
Answer: b

Question: The activities of selecting, processing and reporting the information can be described as:
a) Book-keeping
b) Accounting
c) Auditing
d) Casting
Answer: b

Question: The passage involves capital receipts (apart from initial capital invested).
a) True
b) False
c) Partially true
d) Can’t say
Answer: a

Question: Discounts are recorded in books of accounts.
a) True
b) False
c) Partially true
d) Can’t say
Answer: c

Question: Which one an example of current liabilities:
a) Bills Receivable
b) Debtors
c) Creditors
d) None of the options
Answer: c

Question: The goods unsold at the end of the accounting year are called:
a) Opening stock
b) Goods
c) Closing stock
d) All of the options
Answer: c

Question: Winning a court case an example of:
a) Profit
b) Income
c) Gain
d) Revenue
Answer: c

Question: Purchases refer to the purchase of:
a) Stationery for office use
b) Goods for resale
c) Assets for the factory
d) None of the options
Answer: b

Question: Long term transactions are also called:
a) Paper transaction
b) Capital transaction
c) Revenue transaction
d) Non monetary transaction
Answer: b

Question: The goods available with the business for sale on a particular date is known as:
a) Stock
b) Creditors
c) Debtors
d) None of the options
Answer: a

Question: Which of the following is not a fixed assets:
a) Building
b) Land
c) Machinery
d) B/R
Answer: d

Question: The financial information provided by an accounting system is needed by:
a) Owners
b) Creditors
c) Management
d) All of the options
Answer: d

Question: The amount of cash or goods which is withdrawal by proprietor from business for its private uses is called:
a) Capital
b) Expenses
c) Drawings
d) Expenditure
Answer: c

Question: The mordern system of recording business transactions in the books of accounts is known as:
a) Mordern system
b) Single entry system
c) American system
d) Double entry system
Answer: d

Question: Inventory valued at:
a) Cost price
b) Market price
c) Whichever is less
d) Whichever is more
Answer: c

Question: Who is the father of Accounting:
a) Luca Pacioli
b) Charles Babeje
c) Henry Fayol
d) F. W. Tailor
Answer: a

Question: Recording business transactions in a set of books is known as:
a) Book keeping
b) Ledger
c) Accountancy
d) All of the options
Answer: a

Question: Double entry system of accounting means:
a) Entry in two sets of books
b) Entry in two dates
c) Entry for two aspects of the transaction
d) Entry for one aspects of the transaction
Answer: c

Question: Current assets do not include:
a) Motor car
b) Inventory
c) Bills Receivable
d) Debtors
Answer: a

Question: Which type of discount is being discussed in the last part of passage?
a) Trade discount
b) Cash discount
c) Both Trade discount and Cash discount
d) Can’t be determined
Answer: a

Question: A person who owns business Alone is called:
a) Investor
b) Vendor
c) Proprietor
d) Buyer
Answer: c

Question: Which branch of accounting is liked by Sen?
a) Financial accounting
b) Cost accounting
c) Management accounting
d) Tax accounting
Answer: c

Question: Objective of Accounting are:
a) Calculate profit and loss
b) Maintain records of business
c) Depict the financial position
d) All of the options
Answer: d

 Question: Which of the following is not a current assets:
a) Plant
b) Debtors
c) B/R
d) Stock
Answer: a

Question: Which of the following defines loss in the correct manner?
(i) Result of the business for a period when total expenses exceed the total revenues.
(ii) Loss due to fire, theft, accident against which the firm receives no benefit.
a) Only (i)
b) Only (ii)
c) Both (i) and (ii)
d) Neither (i) nor (ii)
Answer: c

Fill In The Blanks 

Question: Branch of accounting which assists in systematic recording of business transactions is known as —————–.
Answer: Financial accounting

Question: Use of common unit of measurement and common format of reporting promotes ———.
Answer: Comparability

Question: The amount which is paid for increasing profit earning capacity of business is called ————- .
Answer: Capital Expenditure

Question: For the purpose of calculating net profit or net loss at the end of the accounting year a statement is prepared called ——————–.
Answer: Income statement

Question: Amount invested in the business by the owner is known as——————.
Answer: Capital

Question: Ethical or environmental activities of the firm are related which responsibility of business ———–.
Answer: Social responsibility

Question: An event involving some value between two or more entities is known as —————– .
Answer: Business transaction

Question: The term purchase is used for purchase of goods only but not for purchase of———-.
Answer: Fixed assets

True / False 

Question: Trade Discount is deducted from list price of the product.
Answer: True

Question: The benefit of an expenditure lasts for more than a year is treated as Revenue Expenditure.
Answer: False

Question: Accounting do not gives the complete picture of the financial conditions of the business unit.
Answer: False

Question: Plant & Machinery is a type of Fixed Assets.
Answer: True

Question: A transaction is any event or condition, such as buying or selling that must be recorded in the financial records of a business.
Answer: True

Question: Creditors are the external users of Accounting Information.
Answer: True

Question: In accountancy, all business transactions are recorded as having dual aspect.
Answer: True 

Question:
1. Comparability                                       A. Payable within a year
2. Long term liability                                 B. Common unit of measurement
                                                                 C. payable after a period of one year
                                                                 D. Common values is must
Answer: 1-B; 2-C

Question:
1. Business transaction                 A. Debit balance of profit and loss account
2. Fixed assets                              B. Economic activity
3. Nominal assets
Answer: 1-B; 2-A

Question:
1. Materials held by an enterprise                          A. Turnover
2. Total sales of a particular period                        B. Stock of finished goods
                                                                               C. Bad debts
                                                                               D. Stores
Answer: 1-D; 2-A

Question:
1. Transactions                                       A. Excess of revenues over its related expenses
2. Profit                                                   B. Winning a court case
                                                               C. Involving values between two or more entities
Answer: 1-C; 2-A

Question:
1. Sales                                      A. Total revenue from selling of an asset
2. Liabilities                                B. Properties of an enterprise
                                                   C. Obligations of an enterprise
                                                   D. Total revenue from goods and services
Answer: 1-D; 2-C

Question:
1. Current assets + fixed assets – capital                     A. Bad debts
2. Irrecoverable amount from debtor                            B. Internal liabilities
                                                                                     C. External liabilities
                                                                                     D. Provision for bad debts
Answer: 1-C; 2-A