Significant Class 11 Accountancy MCQ Questions of Financial Statements with Answers are given here to the understudies who are planning for the CBSE Class 11 Board Exams. These MCQ Questions class 11 Accountancy cover all points associated with the most recent Class 11 Accountancy Syllabus suggested by CBSE. In this way, you can practice various concepts of Multiple Choice Questions for Class 11 Accountancy from all sections effortlessly and test your problem thinking and time usage abilities.
Practicing from the Objective Questions for Class 11 Accountancy assists you with being ready for the impending tests. How about we start your preparation and score more marks in the Class 11 Accountancy board assessment with MCQ Questions accessible here.
1. Outstanding Expenses are related to-
(a) Current year
(b) Next year
(c) Last year
(d) None of these.
2. Prepaid expenses are shown in-
(a) Liability side
(b) Asset side
(c) Assets or Liability side
(d) None of these.
3. Charity of goods is-
(a) Expenses
(b) Loss
(c) Profit
(d) None of these.
4. If a person fails to pay his debt, such amount is considered as-
(a) Bad debts
(b) Bad debts recovered
(c) Provision for Bad debt
(d) None of these.
5. The object of non – trading concerns-
(a) Social service
(b) Profit earning
(c) Both of these
(d) None of the above.
6. Such persons who earn remuneration against their services are called –
(a) Seller
(b) Purchaser
(c) Professional
(d) None of these.
7. The goal of final accounts is to determine:
(a) Capital
(b) The value of assets
(c) Profit or loss
(d) Profit and loss and financial position
8. Computers purchased for re-sale is:
(a) Capital expenditure.
(b) Revenue Expenditure.
(c) Deferred Revenue Expenditure.
(d) None of these.
9. Arrange cash, building goodwill, debtors, and machine in the Balance Sheet in order of liquidity.
(a) Debtors, Cash, Building Goodwill, Machine
(b) Cash, Debtors, Machine. Building, Goodwill
(c) Cash, Building Goodwill, Debtors, Cash Machine
(d) Cash, Goodwill, Debtors, Machine. Building
10. Profit earn through normal activities of business
(a) operating profit
(b) net profit
(c) gross profit
(d) manufacturing profit
11. We get Profit & Loss account for_________.
(a) net profit
(b) capital
(c) gross profit
(d) gross loss.
12. Which is an example of fictitious assets?
(a) Building
(b) Bill receivable
(c) Adverting suspense
(d) Cash
13. The financial statements consist of:
(a) Trial balance
(b) Profit and Loss account
(c) Balance sheet
(d) (a) & (c)
(e) (b) & (c)
14. Choose the correct chronological order of ascertainment of the following profits from the profit and loss account:
(a) Operating Profit, Net Profit, Gross Profit
(b) Operating Profit, Gross Profit, Net Profit
(c) Gross Profit, Operating Profit, Net Profit
(d) Gross Profit, Net Profit, Operating Profit
15. While calculating operating profit, the following are not taken into account.
(a) Normal transactions
(b) Abnormal items
(c) Expenses of a purely financial nature
(d) (b) & (c)
(e) (a) & (c)
16. Which of the following is correct:
(a) Operating profit = Operating profit – Non-operating expenses – Non-operating incomes
(b) Operating profit = Net profit + Non-operating expenses + Non-operating incomes
(c) Operating profit = Net profit + Non-operating expenses – Non-operating incomes
(d) Operating profit = Net profit – Non-operating expenses + Non-operating incomes
17. Trading Account discloses-
(a) Gross profit
(b) Net profit
(c) Net loss
(d) Gross profit or Gross loss
18. Direct Expenses are entered in:
(a) Trading Account
(b) profit & Loss Account
(c) Balance sheet
(d) None of these
19. The term ‘Financial Statement’ covers
a) Profit & Loss Statement
b) Balance sheet and Profit & Loss Statement appropriation account
c) Profit & Loss Statement and Balance sheet
d) All of above are false
20. Which of the following items is included in the adjustment of net income to obtain cash flow from operating activities?
a) Depreciation expense for the period.
b) The change in deferred taxes.
c) The amount by which equity income recognized exceeds cash received.
d) All of the above
21. A financial statement that summarizes company revenue and expenses is?
a) Balance sheet
b) Statement of owner equity
c) Income statement
d) Cash flow statement
22. How would revenue from sales of goods and services be classified?
a) Operating outflow.
b) Operating inflow.
c) Investing inflow.
d) Financing inflow.
23. What is a limitation common to both the current and quick ratio?
a) Accounts receivable may not be truly liquid.
b) Inventories may not be truly liquid.
c) Marketable securities are not liquid.
d) Prepaid expenses are potential sources of cash.
24. What is Form 10-K?
a) A document filed with the AICPA, containing supplementary schedules showing management remuneration and elaborations of financial statement disclosures.
b) A document filed with the Securities and Exchange Commission by companies selling securities to the public, containing much of the same information as the annual report as well as additional detail.
c) A document filed with the Securities and Exchange Commission containing key business ratios and forecasts of earnings.
d) A document filed with the Securities and Exchange Commission containing nonpublic information.
25. What does an increasing collection period for accounts receivable suggest about a firm’s credit policy?
a) The credit policy is too restrictive.
b) The firm is probably losing qualified customers.
c) The credit policy may be too lenient.
d) The collection period has no relationship to a firm’s credit policy.
