Class 11 Accountancy MCQ Questions of Theory Base of Accounting with Answers available here. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Important Multiple Choice Questions of Class 11 Accountancy. Each question has four options followed by the right answer. Refer to MCQ Questions for Accountancy Class 11 with Answers Theory Base of Accounting designed as per the latest syllabus issued by CBSE.
All Multiple choice questions have been provided with solutions and have been prepared based on the expected pattern in upcoming board exams. MCQ Questions Theory Base of Accounting has been prepared by our team of best accountancy teachers. Check the given NCERT MCQ Questions for Class 11 Accountancy Theory Base of Accounting with Answers.
1. During the life-time of an entity, accounting produces financial statements in accordance with which of the following accounting concept?
(a) Matching
(b) Conservatism
(c) Accounting period
(d) Cost
2. As per Dual Aspect Concept:
(a) Assets = Liabilities – Capital
(b) Assets = Capital – Liabilities
(c) Assets = Liabilities + Capital
(d) Capital = Assets + Liabilities
3. M/s Future Ltd. has invested Rs. 10,000 in the shares of Relicam Industries Ltd. Current market value of these shares is Rs. 10,500. Accountant of Future Ltd. wants to show Rs. 10,500 as value of investment in the books of accounts, which accounting convention restricts him from doing so?
(a) Full disclosure
(b) Consistency
(c) Conservatism
(d) Materiality
4. Omission of paise and showing the round figures in financial statements is based on …… .
(a) Conservatism convention
(b) Consistency concept
(c) Materiality convention
(d) Money measurement concept
5. According to the Cost Concept
(a) Assets are recorded at lower of cost and market value.
(b) Assets are recorded by estimating the market value at the time of purchase.
(c) Assets are recorded at the value paid for acquiring it.
(d) Assets are not recorded
6. X Ltd. follows the Written Down Value Method of depreciating machinery year after year due to
(a) comparability.
(b) convenience.
(c) consistency.
(d) All of these.
7. The Trading and Profit and Loss Account is prepared under which attribute of accounting:
(a) Summarising
(b) Recording
(c) Classifying
(d) Analysis and Interpretation
8. According to Convention of Conservatism closing stock is valued at:
(a) At cost Price
(b) At Realisable value
(c) Cost price or realisable
(d) At Real value value whichever is less
9. Generally the duration of an Accounting period is of-
(a) 6 months
(b) 3 months
(c) 12 months
(d) 1 month.
10. The sum of Liabilities and Capital is-
(a) Expense
(b) Income
(c) Drawings
(d) Assets.
11. In India, the accounting standard board was set up in the year-
(a) 1972
(b) 1977
(c) 1956
(d) 1932.
12. The basic accounting postulates are denoted by –
(a) Concepts
(b) Book – keeping
(c) Accounting standards
(d) None of these.
13. The amount drawn by businessmen for his personal use is-
(a) Capital
(b) Drawing
(c) Expenditure
(d) Loss.
14. Meaning of credibility of going concern is:
(a) Closing of business
(b) Opening of business
(c) Continuing of business
(d) None of these.
15. The primary qualities that make accounting information useful for decision making are _______.
(a) Relevance and freedom from bias
(b) Reliability and comparability
(c) Comparability and consistency
(d) None of the above
16. The amount drawn by a businessman for his personal use is _______.
(a) Capital
(b) Drawing
(c) Expenditure
(d) Loss
17. During a lifetime of an entity, accounting produces financial statements in accordance with which basic accounting concept?
(a) Conservation.
(b) Matching
(c) Accounting period
(d) None of the above
18. In India, the accounting standard board was set up in the year ______.
(a) 1972
(b) 1977
(c) 1956
(d) 1932
19. A concept that a business enterprise will not be sold or liquidated in the near future is known as ________.
(a) Going concern
(b) Economic entity
(c) Monetary unit
(d) None of the above
20. Meaning of credibility of going concern is _______.
(a) Closing of business
(b) Opening of business
(c) Continuing of business
(d) None of the above
21.The primary qualities that make accounting information useful for decision-making are
(i) Relevance and freedom from bias
(ii) Reliability and comparability
(iii) Comparability and consistency
(iv) None of the above
22. According to the Cost Concept
(i) Assets are recorded at lower of cost and market value.
(ii) Assets are recorded by estimating the market value at the time of purchase.
(iii) Assets are recorded at the value paid for acquiring it.
(iv) Assets are not recorded
23. The Trading and Profit and Loss Account is prepared under which attribute of accounting:
(i) Summarising
(ii) Recording
(iii) Classifying
(iv) Analysis and Interpretation
24. Meaning of credibility of going concern is:
(i) Closing of business
(ii) Opening of business
(iii) Continuing of business
(iv) None of these.
25. A concept that a business enterprise will not be sold or liquidated in the near future is known as :
(i) Going concern
(ii) Economic entity
(iii) Monetary unit
(iv) None of the above
