These CBSE Class 11 Accountancy MCQs are updated for 2026-27, organized by chapter. They help Class 11 students learn the current Accountancy exam style, and build real problem-solving skill along the way.
What Class 11 Students Gain From Accountancy MCQs
- Organized sets that test your understanding of every important Accountancy topic, chapter by chapter.
- Accurate answers for every Accountancy MCQ, so you learn the logic behind each correct choice.
- Strictly based on the 2026 CBSE Accountancy textbook, and guidelines issued by CBSE.
- A wide range of Class 11 Assertion and Reasoning, Case-based, and Fill-in-the-blanks questions for Accountancy.
Class 11 Accountancy Question Bank, Chapter by Chapter
The 2026-27 Accountancy question sets below are ready for practice. Use them to test yourself, and figure out where to focus before your exams.
|
Quick Practice - Try a Few Questions First Pick a chapter below, answer a few questions instantly, then jump to the full set list for more. Q1.Accounting is often called the language of business because it: Answer: (a) Records, classifies and summarises financial transactions and communicates results to users. This full cycle of work is what lets people outside the business, such as investors and lenders, understand how it is performing.
Q2.Which of the following is NOT one of the basic objectives of accounting? Answer: (c) Predicting the exact future stock price of a company. Accounting deals with recording and reporting what has already happened financially, not with forecasting share prices.
Q3.Which branch of accounting is mainly concerned with providing information to management for planning and decision making? Answer: (c) Management accounting. It reworks financial data into a form that helps managers plan, control costs and make internal business decisions.
Q4.An economic event that changes the financial position of a business and can be measured in money is called a: Answer: (a) Transaction. Every entry made in the books of accounts begins with an event of this kind, since only events with a money value can be recorded.
Q5.A person or entity that owes money to a business is known in accounting as a: Answer: (b) Debtor. A creditor is the opposite: someone the business owes money to, rather than someone who owes the business.
Q1.The accounting principle which assumes that a business will continue to operate for the foreseeable future is the: Answer: (a) Going concern concept. Because of this assumption, assets are recorded at cost rather than at what they might fetch if the business were shutting down.
Q2.Which concept requires that only transactions capable of being expressed in monetary terms be recorded in the books of accounts? Answer: (b) Money measurement concept. This is why qualitative factors, such as the skill of employees, never appear directly in the books even though they matter to the business.
Q3.Treating a business and its owner as two separate entities for accounting purposes is based on the: Answer: (b) Business entity concept. It is the reason an owner withdrawing cash for personal use is recorded as drawings rather than simply ignored.
Q4.Which body is primarily responsible for formulating Accounting Standards in India? Answer: (b) Institute of Chartered Accountants of India. These standards aim to bring uniformity to how different companies prepare and present their financial statements.
Q5.Under which accounting concept are anticipated losses recorded, but anticipated profits are ignored? Answer: (b) Conservatism (prudence) concept. Following a cautious approach like this helps prevent a business from overstating its profits or the value of its assets.
Q1.The book in which transactions are first recorded in chronological order is called the: Answer: (b) Journal. Because of this role, it is often referred to as the book of original entry.
Q2.A source document that provides written evidence of a business transaction is called a: Answer: (c) Voucher. Bills, receipts and invoices are common examples, and they form the basis on which journal entries are made.
Q3.According to the rule of double entry, every debit must have a corresponding: Answer: (a) Credit of an equal amount. This balance between debits and credits is what keeps the accounting equation in agreement at all times.
Q4.Under the traditional classification of accounts, an account representing an asset owned by the business is classified as a: Answer: (b) Real account. Cash, furniture and buildings are typical examples, and the rule followed for these is to debit what comes in and credit what goes out.
Q5.In the modern (American) approach to classifying accounts, capital and liabilities fall under the category of: Answer: (c) Equity and liability accounts. An increase in either is recorded as a credit under this approach, which many students find more intuitive than the traditional method.
Q1.A cash book that records both cash and bank transactions in separate columns is known as a: Answer: (b) Double column cash book. Keeping cash and bank in separate columns means it also serves as the ledger account for both, so no separate cash or bank account is needed.
Q2.Small, frequent expenses like postage and stationery are usually recorded through the: Answer: (c) Petty cash book. Maintaining a separate record for these small payments frees the main cash book from being cluttered with minor entries.
Q3.The imprest system is closely associated with the maintenance of the: Answer: (c) Petty cash book. Under this system, the petty cashier is reimbursed at fixed intervals with the exact amount spent, so the fund always returns to its original level.
Q4.Which subsidiary book is used to record credit purchases of goods meant for resale? Answer: (a) Purchases book. Cash purchases are excluded from this book entirely, since they are recorded directly in the cash book instead.
Q5.Transactions that do not fit into any of the special subsidiary books are recorded in the: Answer: (b) Journal proper. Opening entries and rectification entries are common examples of what ends up recorded here.
Q1.A bank reconciliation statement is prepared mainly to reconcile the balance shown by the: Answer: (b) Cash book and the passbook. These two records are maintained independently, by the business and the bank, so differences between them are common and need to be explained.
Q2.A cheque issued by a business but not yet presented for payment at the bank is known as a: Answer: (b) Unpresented cheque. Since the bank has not yet processed it, the passbook balance stays higher than the cash book balance until it is presented.
Q3.A bank collecting a cheque on behalf of the business, with the entry not yet recorded in the cash book, is an example of a: Answer: (a) Timing difference. Both records are correct on their own, it is only that the business has not yet learned of the collection, so the entry will appear later.
Q4.Bank charges debited by the bank but not yet recorded in the cash book will cause the passbook balance to be: Answer: (b) Lower than the cash book balance. The bank has already reduced its own record for the charge, while the business's cash book still shows the balance before that deduction.
Q5.A cheque deposited by the business but not yet credited by the bank is called a: Answer: (a) Uncredited cheque. The business records it as received the moment it is deposited, but the bank only adds it to the balance once the clearing process is complete.
Q1.A trial balance is prepared mainly to check the: Answer: (b) Arithmetical accuracy of the ledger accounts. A matching total on both sides is a good sign, though it does not by itself guarantee that every entry was recorded correctly.
Q2.A transaction that is completely left out of the books of accounts is an error of: Answer: (b) Complete omission. Because neither the debit nor the credit side is affected, this type of error does not disturb the agreement of the trial balance.
Q3.Recording a capital expenditure as a revenue expenditure is an example of an error of: Answer: (b) Principle. The amounts may be entered correctly, but treating the wrong type of expenditure this way still breaks an accounting rule.
Q4.Errors that cancel out the effect of each other, leaving the trial balance unaffected, are called: Answer: (c) Compensating errors. These are tricky to catch precisely because the trial balance still agrees, giving a false sense that everything is correct.
Q5.The account temporarily opened to hold the difference in a trial balance until errors are located is called the: Answer: (a) Suspense account. Once the errors causing the mismatch are found and corrected, this account is closed and should show no remaining balance.
Q1.Depreciation is best described as the: Answer: (b) Gradual and permanent decrease in the value of a fixed asset due to use or wear and tear. Since this decline happens over time rather than all at once, it needs to be charged to the profit and loss account year after year.
Q2.Under the straight line method of depreciation, the amount of depreciation charged each year is: Answer: (b) The same every year. Since it is calculated on the original cost of the asset each time, the figure remains fixed throughout its useful life.
Q3.A provision is created mainly to meet a: Answer: (a) Known liability of an uncertain amount. Provision for doubtful debts is a common example, since it is known that some debtors may default even though the exact amount is not certain in advance.
Q4.A reserve created out of profits and kept aside for a particular purpose, such as a dividend equalisation reserve, is called a: Answer: (b) Specific reserve. Unlike a general reserve, this type is set up with one clear purpose in mind and is normally used only for that.
Q5.Under the written down value method of depreciation, depreciation is calculated on the: Answer: (b) Reducing book value of the asset each year. Because the base keeps shrinking, the depreciation amount is highest in the early years and gradually falls as the asset ages.
Q1.The financial statement that shows the gross profit or gross loss of a business for an accounting period is the: Answer: (b) Trading account. It compares net sales with the cost of goods sold, and the result carries forward into the profit and loss account.
Q2.The net profit or net loss of a business for an accounting period is ascertained through the: Answer: (b) Profit and loss account. It takes the gross profit figure and adjusts it for all indirect incomes and indirect expenses of the business.
Q3.The financial statement that shows the assets, liabilities and capital of a business as on a particular date is the: Answer: (c) Balance sheet. Unlike the trading and profit and loss accounts, which cover a period, this statement is prepared as of one specific date.
Q4.Direct expenses related to the purchase and production of goods are shown in the: Answer: (b) Trading account. Carriage inward and wages are common examples, and including them here is what allows an accurate gross profit to be worked out.
Q5.Indirect expenses like office rent and salaries are usually recorded in the: Answer: (b) Profit and loss account. These costs are not tied directly to producing or buying goods, so they are kept separate from the trading account.
Q1.Expenses that relate to the current accounting period but have not yet been paid are called: Answer: (b) Outstanding expenses. These are added to the relevant expense in the profit and loss account and shown as a liability in the balance sheet.
Q2.Income earned during the accounting period but not yet received in cash is termed: Answer: (a) Accrued income. It is added to the related income in the profit and loss account and appears as a current asset in the balance sheet.
Q3.An expense paid in advance, relating to the next accounting period, is known as a: Answer: (b) Prepaid expense. Since it does not belong to the current period, it is deducted from the expense and shown instead as a current asset in the balance sheet.
Q4.A provision made to cover debts that are expected to become uncollectible in the future is called: Answer: (b) Provision for doubtful debts. Creating it in advance follows the conservatism principle, since it accounts for likely bad debts before they actually happen.
Q5.Closing stock, when given as an adjustment outside the trial balance, is shown in the trading account and also in the: Answer: (b) Balance sheet as a current asset. This double appearance follows the rule that any adjustment given outside the trial balance must be recorded at two places in the final accounts.
|
Free study material for Accountancy
FAQs
For the 2026-27 session, MCQs and objective-type questions carry around 20% weightage. CBSE has introduced 30% competency based questions as MCQs and they are important part of the Class 11 Accountancy paper.
You can access the latest chapter-wise MCQs for Class 11 Accountancy for free from StudiesToday.com. All questions are based on the latest syllabus and current academic year.
Yes, our Accountancy practice bank includes the new pattern of Assertion Reasoning and Case Study based MCQs. They have been designed to test the analytical skills of Class 11 students.
Solving Class 11 Accountancy MCQs regularly improves speed and accuracy as these are objective questions can get you 100% marks if your understanding of the topic is clear.
Yes, all Class 11 Accountancy MCQs and answers are accessible on any device at your convenience.
No, all Accountancy Multiple Choice Questions (MCQs), practice papers, and solutions for Class 11 are available for free for students to get more marks school exams.