CBSE Class 11 Accountancy Introduction To Accounting And Basic Worksheet Set 01

Important Questions for NCERT Class 11 Accountancy Introduction to Accounting

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

Answer :  B

Question  Which of the following accounts has a credit balance?
(a) Carriage Inward
(b) Discount Received
(c) Carriage Outward
(d) Discount Allowed

Answer :  B

Question Debit means
(a) an increase in asset.
(b) an increase in liability.
(c) an increase in the proprietor’s equity.
(d) a decrease in asset.

Answer :  A

Question  Credit means
(a) an increase in asset.
(b) an increase in liability.
(c) a decrease in liability.
(d) a decrease in proprietor’s equity.

Answer :  B

Question  Bank account is a
(ci) Personal Account.
(b) Real Account,
(c) Nominal Account.
(d) None of these.

Answer :  A

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

Answer :  A

Question  Balance of Capital Account is shown as
(a) Capital Account.
(b) Liability Account.
(c) Revenue Account.
(d) None of these.

Answer :  C

Question  Sundry Creditors Account is a
(a) Revenue Account.
(b) Capital Account.
(c) Liability Account.
(d) None of these.

Answer :  C

Question  Sale of goods to Ram for cash is debited to
(a) Ram.
(b) Cash A/c.
(c) Sales A/c.
(d) None of these.

Answer :  B

Question  Withdrawal of cash from business by the proprietor is credited to
(a) Drawings A/c.
(b) Capital A/c,
(c) Cash A/c.
(d) Profit and Loss A/c.

Answer :  C

Question  Sales Account is a
(a) Revenue Account.
(b) Liability Account.
(c) Capital Account.
(d) None of these.

Answer :  A

Question  Salaries Account is
(a) an Expense Account.
(b) an Asset Account.
(c) a Liability Account.
(d) None of these.

Answer :  A

CBSE Class 11 Accountancy Chapter 1 Introduction To Accounting And Basic 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. Fixed assets are also known as ----------------------.
Answer. Non current assets

Question. Main function of accounting is to maintain complete and systematic record of -----------------transactions
Answer. Business

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

Question. The excess of revenue over expenses of an accounting year is known as --------.
Answer. Net profit

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

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

Question. Excess of current assets over current liabilities in known as--------------.
Answer. Working capital

Question. Current assets get converted in cash in a period of ----------------.
Answer. One year or 12 months

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

CBSE Class 11 Accountancy Chapter 1 Introduction To Accounting And Basic True and False

1. Book – Keeping starts where accounting ends. (False)
2. Cost Accounting is a branch of Accounting. (True)
3. Accounting involves only the recording of Business Transactions. (True)
4. Assets which can be converted into cash within a year is known as Fixed Assets. (False)
5. Those debts that are payable after a period of one year is known as Current Liabilities. (False)
6. Costs incurred by a business for earning revenue are known as Expenses. (True)
7. Assets accounts normally have a credit balance. (False)
8. Plant & Machinery is a type of Fixed Assets. (True)
9. Goods remains at the end of accounting year is known as Closing Stock. (True)
10. Accounting is a language of business. (True)
11. GST stands for Goods & Sales Tax. (False)
12. Final Accounts are prepared at the end of the accounting year. (True)
13. Cash Account is a Nominal Account. (False)

CBSE Class 11 Accountancy Chapter 1 Introduction To Accounting And Basic MCQs

Question. Qualitative characteristics of accounting information are:
(a) Reliability
(b)Relevance
(c) Understandable
(d) All of these 
Answer: All of these

Question. A summarized record of relevant transactions of particulars head at one place are:
(a) Ledger
(b) Journal
(c) Account
(d) Purchases book
Answer: Account 

Question. Those assets which have physical existence and can be seen and touched are:
(a) Current assets
(b) Tangible assets
(c) Intangible assets
(d) None of these
Answer: Tangible assets

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 these
Answer: Stock 

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

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

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

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

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: Debtors

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: Double entry system

Question. A portion of the accounts receivable which proves to be uncollectible is termed as:
(a) Bad debts
(b) Doubtful debts
(c) Provision for bad debts
(d) All of these
Answer: Bad debts

Question. The properties owned by a business enterprise are called:
(a) Capital
(b) Liabilities
(c) Assets
(d) Owner’s equity
Answer: Assets 

Question. Accounts receivable are considered as:
(a) Current assets
(b) Income
(c) Deferred receipts
(d) Fixed assets
Answer: Current assets

Question. Bad debts arise from:
(a) Credit sales
(b) Cash sales
(c) Personal sales
(d) All of these
Answer: Credit sales

CBSE Class 11 Accountancy Chapter 1 Introduction To Accounting And Basic Match The Following

Question.
1. Bank overdraft                         A. Fixed liability
2. Amount invested by owner     B. Current liability 
                                                   C. Capital
Answer. 1.B ; 2.C

Question.
1. Debtors         A. Withdraw for official use
2. Drawing        B. To whom goods sold on credit
                         C. From whom goods purchased on credit
                         D. Withdraw for personal purpose
Answer. 1.B ; 2.D

Question. 
1 intangible       A. Assets have physical value
2. Purchase      B. Purchase of machinery
                         C. Goods for resale
                         D. Assets have no physical value
Answer.1.D ; 2.C

Question.
1. External users       A. Liability
2. Management         B. Researchers
                                  C. Management cost
                                  D. Internal users
Answer.1.B ; 2.D

Question.
1. Capital expenditure      A. Converted into cash within one year
2. Current assets             B. Paying salary to worker
                                        C. Cost of installing machine
Answer. 1. C ; 2.A

Q1) Define Accounting as per AICPA.

Q2) Define Book Keeping. What is its function?

Q3) Differentiate between Book Keeping and Accounting.

Q4) Explain the advantages of Accounting.

Q5) Discuss the limitations of Accounting.

Q6) State the different users of Accounting information and their informational needs.

Q7) Highlight the qualitative characteristics of accounting information.

Q8) Giving examples, explain each of the following:

   a) Capital

   b) Liability

   c) Purchase

   d) Sales

   e) Debtor

   f) Creditor

   g) Drawings

   h) Discount

   i) Stock

Q9) Distinguish between:

   a) Loss and expense

   b) Revenue and income

   c) Fixed asset and current asset

   d) Long term liability and short term liability