CBSE Class 11 Accountancy Introduction To Accounting Worksheet

Important Questions for NCERT Class 11 Accountancy Introduction to Accounting

Question Which qualitative characteristic of accounting information is reflected when accounting information is clearly presented?   
(a) Reliability
(b) Relevance
(c) Comparability
(d) Understandability
Answer : D

Question 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 Institutions
(D) Researchers
Answer : C

Question. Which of the following transactions is not of financial character?   
(A) Purchase of asset on credit
(B) Purchase of asset for cash
(C) Withdrawing of money by
(D) Strike by Employees proprietor from business
Answer : D

Question. Last step of accounting process is :
(A) Provide information to various parties who are interested in business enterprise.   
(B) Record transactions in the books.
(C) To make summary in the form of financial statements.
(D) To classify the transactions under separate heads in the ledger.
Answer : A

Question. Internal users of accounting information are :   
(A) Potential Investors
(B) Creditors
(C) Management
(D) Employees
Answer : C

Question. External users of accounting information are :   
(A) Researchers
(B) Government
(C) Potential Investors
(D) All of the above
Answer : D

Question. External users of accounting information are not:   
(A) Lenders
(B) Officers
(C) Employees
(D) Public
Answer : B

Question. Which of the following is not a limitation of accounting?   
(A) Based on accounting conventions
(B) Evidence in Legal Matters
(C) Incomplete Information
(D) Omission of Qualitative Informations
Answer : B

Question Which of the following is a liability?
(a) Furniture
(b) Rent Payable
(c) Interest Received
(d) Stock
Answer :  B

Question Which of the following is revenue?
(a) Purchases
(b) Purchases Return
(c) Sales
(d) Salary Payable
Answer :  C

Question Stock is valued at
(a) Cost or Net Realisable Value (Market Value), whichever is lower.
(b) Cost or Net Realisable Value (Market Value), whichever is higher.
(c) Cost.
(d) Net Realisable Value (Market Value).
Answer :  A

Question Bank overdraft is
(a) short-term liability.
(b) long-term liability.
(c) contingent liability.
(d) None of these.
Answer :  A

Question Which of the following is not a business transaction?
(a) Bought furniture of Rs. 25,000 for business.
(b) Paid for salaries of employees, Rs. 20.000.
(c) Cash withdrawn from personal bank account, Rs. 10,000 for domestic use.
(d) All of the above.
Answer :  C

Question Which of the following is not a fixed asset?
(a) Building
(b) Plant and Machinery
(c) Balance with bank
(d) Goodwill
Answer :  C

Question Which of the following is not an expense?
(a) Furniture
(b) Salary
(c) Rent
(d) Electricity Expenses
Answer :  A

Question  Capital Account is a
(a) Natural Personal Account.
(b) Artificial Personal Account.
(c) Representative Personal Account.
(d) None of these.
Answer :  A

Question  An increase in which of the following account will be recorded on the debit side?
(a) Building Account.
(b) Capital Account.
(c) Bills Payable Account.
(d) Rent Received Account.
Answer :  A

Question. By the nature of multiple definitions given for accounting, which of these is a feature of accounting?
(a) Communicating financial information
(b) Assisting in decision–making
(c) Helping interested users in judgement
(d) All of the above
Answer : D

Question. Which of these concepts is a process of give and take with ‘event’ as the end result of it?
(a) Measurement
(b) Financial information
(c) Transactions
(d) Communication
Answer : C

Question. In measurement, what type of transactions are considered (during the process of accounting)?
(a) Quantitative
(b) Qualitative
(c) Both (a) and (b)
(d) Can’t say
Answer : A

Question. Which of the following is the process of entering business transactions of financial character in the books of original entry in terms of money?
(a) Classifying
(b) Summarising
(c) Interpretation
(d) None of these
Answer : D

Question. Accounting starts with …… financial transactions and ends with …… accounting information.
(a) recording, communicating
(b) classifying, analysing
(c) identifying, analysing
(d) identifying, communicating
Answer : D

Question. Book keeping is a wider concept than accounting.
(a) True
(b) False
(c) Partially true
(d) Partially false
Answer : B

Question. …… refers to the entire body of the theoretical knowledge of accounting.
(a) Financial management
(b) Accounting
(c) Accountancy
(d) None of the above
Answer : C

Question. Accounting and Accountancy are one and the same thing.
(a) True
(b) False
(c) Partially false
(d) Can’t say
Answer : B

Question. The objectives of accounting are varied.Which of the following are the objectives of accounting?
(i) Maintain systematic and complete record of business transactions.
(ii) Ascertain financial position of business.
(iii) Provide useful information to various interested parties.
(a) Only (i)
(b) Only (iii)
(c) (i) and (ii)
(d) All of these
Answer : D

CBSE Class 11 Accountancy Chapter 1 Introduction to Accounting Assertion-Reasoning MCQs

Direction There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false

Question. Assertion (A) Accounting is an art as it involves recording, classifying, summarising business transactions with a view to ascertain the net profit.
Reason (R) Accounting is a science since it is based on certain specified principles and accounting standards.
Answer : B

Question. Assertion (A) Environmental protection groups are one of the multiple external users of accounting information.
Reason (R) Social responsibility groups want to know the impact of business on environment and steps taken by an enterprise for the protection of environment.
Answer : A

Question. Assertion (A) Book keeping involves summarising the classified transactions in the form of profit and loss account and balance sheet.
Reason (R) Book keeping is an art of recording in books of accounts, the monetary aspect of commerical or financial transactions. It is concerned with record keeping maintenance of books of accounts.
Answer : C

Question. Assertion (A) If Cash = Rs 20,000,Machinery = Rs 30,000, Stock = Rs 10,000,Creditors = Rs 40,000, then net worth of firm = Rs 20,000.
Reason (R) Capital = Liabilities − Assets.
Answer : D

Question. Assertion (A) Prepaid expenses are a part of current assets.
Reason (R) Current assets involves assets which can be converted into cash within one year as well as assets for which service or benefit will be available against these assets without further repayment.
Answer : A

INTRODUCTION TO ACCOUNTING

1. Define Accounting as per AICPA. What are its main objectives?

2. Define Book Keeping. What is the function of book keeping?

3. Differentiate between book keeping & accounting.

4. Explain the advantages of Accounting

5. Discuss the limitations of accounting.

6. State the different users of accounting information and their informational needs.

7. Explain the qualitative characteristics of accountancy.

9. “Accounting calls for lot of ethical consideration.” Do you agree?

10. Giving examples, explain each of the following

(i) tangible assets

(ii) intangible assets

(iii) liability

(iv) drawings

(v) revenue

(vi) expenses

(vii) income

(viii) cost

(ix) debtors

(x) creditors

(xi) stock

11. Draw a diagram of branches in accounting.

12. Distinguish between (a) trade discount and cash discount .

Very Short Answer Questions (1 Mark)

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:
1.Entity
2.Voucher
3.Business Transaction
4. Capital
5.Stoc k
6.Creditors
7.Expenditure
8.Expenses
9.Incomes
10. Revenue
11.Income
12.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.

9  What is meant by Window Dressing?

10  Define Merchandise.

Short and Long Answer Questions (3marks, 4marks, 6marks,8marks)

11  Distinguish between Book-Keeping and Accounting.

12  State and explain the branches of accounting.

13  Explain the internal and external users of Accounting Information?

14   Explain the Objectives of Accounting.

15  What are the advantages of Accounting?

16  Explain all the limitations of Accounting.

17  List and explain the qualitative characteristics of Accounting information.

18   Give short notes on:- (a)Cost Accounting (b)Management Accounting (c) Forensic Accounting (d) Financial Accounting

19   What are Assets and how are they classified?

20  Explain the attributes of Accounting.

21  Discuss the functions of accounting.

22 What are the advantages of the Double Entry System
 

Important Questions for NCERT Class 11 Accountancy Introduction to Accounting
 

Question. In accounts recording is made of:  
(A) Only Financial Transactions
(B) Only Non-financial transactions
(C) Financial as well as non-financial transactions
(D) Personal transactions of the Proprietor

Answer : A


Question. Ghanshyam is a furniture dealer. Which one of the following will not be recorded in his books?   
(A) Purchase of Timber for Rs.50,000
(B) Sofa set worth Rs.40,000 taken to his home
(C) Sale of household furniture for Rs.5.000
(D) Dining table of Rs.30,000 given to his friend as gift

Answer : C
 

Question Cost of Goods Manufactured is determined by   
(a) Financial Accounting.
(b) Cost Accounting.
(c) Management Accounting.
(d) Human Resource Accounting.

Answer : B


Question Qualitative characteristic of Accounting includes   
(а) Reliability and Relevance.
(b) Understandability and Comparability.
(c) Both (a) and (b).
(d) None of the above.

Answer : C
 

Question Basic function of financial accounting is to   
(a) record all business transactions.
(b) interpret financial data.
(c) assist the management.
(d) None of these.

Answer : A


Question Transactions are posted into Ledger Account from   
(a) Vouchers.
(b) Journal book,
(c) Bank Statement.
(d) None of these.

Answer : B


Question Which of the following is not a business transaction?   
(a) Purchase of goods for resale amounted to Rs. 50,000
(b) Paid salaries and wages amounted to Rs. 10,000
(c) Paid rent for office premises Rs. 5,000
(d) Purchased a LCD for personal use

Answer : D


Question Which of the following is not a qualitative characteristic of accounting information?   
(a) Reliability
(b) Understandability
(c) Comparability
(d) Materiality

Answer : D
 

Question. Which of the following is the Capital expenditure?
(A) Wages paid for repair of building
(B) Wages paid for white washing of building
(C) Wages paid for construction of building
(D) Wages paid for cleaning of building

Answer :  C


Question. Consider the following items:
1. Prepaid Salary
2. Accrued Interest (Receivable)
3. Loan (Short term)
4. Bank Overdraft
Current Liability would include:
(A) 1, 2, 3, 4
(B) 2,3,4
(C) 4, 3, 1
(D) 3, 4

Answer :  D
 

Question. Select the correct alternative:
(i) Capital is
(a) internal liability.
(b) external liability.
(c) internal as well as external liability.
(d) None of these.

Answer :  A


Question Goods taken by the proprietor for personal use is
(a) Sale.
(b) Drawings.
(c) Purchase.
(d) None of these.

Answer :  B


Question Amount received or receivable against sale of goods is
(a) revenue receipt.
(b) capital receipt.
(c) sometimes revenue receipt and sometimes capital receipt.
(d) None of these.

Answer :  A


Question Amount paid or payable against purchase of goods is
(a) revenue expenditure.
(b) capital expenditure.
(c) Both (a) and (b).
(d) None of these.

Answer :  A


Question Goodwill is an
(a) Tangible Asset.
(b) Intangible Asset.
(c) Current Asset.
(d) Fictitious Asset.

Answer :  B
 

Question Outstanding salary is a
(a) Real Account.
(b) Personal Account.
(c) Nominal Account.
(d) None of these.

Answer :  B

Question  Nominal Accounts are related to:
(a) Assets and Liabilities.
(b) Expenses and Revenue.
(c) Debtors and Creditors.
(d) None of these.

Answer :  B