CBSE Class 11 Accountancy Introduction to Accounting Worksheet Set C

INTRODUCTION TO ACCOUNTING

I Multiple Choice Questions

1. Book keeping and Accounting

(a) Means same and are used interchangeably

(b) Does not mean same and are not used interchangeably

(c) Means both (a) and (b)

(d) None of the above

2. Which of the following will not be recorded in the books of account?

(a) Sales of goods

(b) Payment of salary

(c) Quality of staff

(d) Purchase of goods

3. Which is the last step of accounting as a process of information?

(a) Recording the transaction

(b) Preparation of financial statements

(c) Communication of information

(d) Analysis and interpretation of information

4. Transactions are posted into ledger account from

(a) Vouchers

(b) Journal book

(c) Bank statement

(d) None of these

5. Which of the following is not a business transaction?

(a) Purchase of goods for resale amounted to 50,000

(b) Paid salaries and wages amounted to 10,000

(c) Paid rent for office premises 5,000

(d) Purchased a LCD for personal use

6. Which of the following is not an internal user of financial statements?

(a) Board of Directors

(b) Managers

(c) Employees

(d) Lenders

7. Which of the following is a limitation of accounting?

(a) Assistance to management

(b) Replaces memory

(c) Unrealistic information

(d) Evidence of court

8. Qualitative characteristics of Accounting includes

(a) Reliability and Relevance

(b) Understandability and comparability

(c) both (a) and (b)

(d) None of the above

9. Which of the following is not a qualitative characteristic of accounting information?

(a) Reliability

(b) Understandability

(c) Comparability

(d) Materiality

10. Which external user of accounting information is most interested in knowing the long term solvency position of the firm?

(a) Employees

(b) Management

(c) Bank and Financial institution

(d) Researchers

IV State whether the following statements are true or false

(a) Accounting deals with quantifiable information.

(b) Accounting aims to communicate financial information to investors only.

(c) Cost of goods manufactured is determined by management accounting

(d) Government is the internal user of accounting information.

V Fill in the blanks:

(a) Book keeping is a systematic record of _______ transactions

(b) Accounting record can be produced as _______ in the court of law.

(c) Accounting measures the business transactions in terms of ____ units.

II One Marks Question

1. Define Accounting.

2. Define Accounting according to the American Institute of Certified Public Accountants.

3. What is meant by Book-Keeping?

4. What is meant by Accounting Cycle?

5. Explain the following terms:

(a) Entity

(b) Expenditure

(c) Voucher

(d) Expenses

(e) Business Transaction

(f) Incomes

(g) Capital

(h) Revenue

(i) Stock

(j) Income

(k) Creditors

(l) Drawings

6. List the steps of accounting process based on the main attributes of accounting.

7. What is meant by Double Entry System of Book-Keeping?

8. Define Single Entry System of Book-Keeping.

III Short and Long Answers (3marks, 4marks, 5marks, 6marks)

1. Distinguish between Book-Keeping and Accounting.

2. State and explain the branches of accounting.

3. Explain the internal and external users of Accounting Information?

4. Explain the Objectives of Accounting.

5. What are the advantages of Accounting?

6. Explain all the limitations of Accounting.

7. List and explain the qualitative characteristics of Accounting information.

8. Give short notes on:-

(a) Cost Accounting

(b) Management Accounting

(c) Forensic Accounting

(d) Financial Accounting

9. What are Assets and how are they classified?

10. Explain the attributes of Accounting.

11. Discuss the functions of Accounting.

12. What are the advantages of the Double Entry System?

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