Accountancy Class 11 MCQs with Answers

Accountancy Class 11 MCQs with Answers – Chapter 1 – Introduction to Accounting

Question 1:  Goodwill account is a   
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these

Question 2: Current Liabilities include: 
(A) Bills Payable
(B) Creditors
(C) Outstanding Expenses
(D) All of the above

Question 3:  Basic function of financial accounting is to   
(a) record all business transactions
(b) interpret financial data
(c) assist the management
(d) None of these

Question 4:  Which of the following is not a long-term liability?
(a) Creditors
(b) Term-loan
(c) Debentures
(d) Capital

Question 5: Which of the following accounts has a credit balance?   
(a) Carriage Inward
(b) Discount Received
(c) Carriage Outward
(d) Discount Allowed

Question 6: Cash, goods, or assets invested by the proprietor in the business for earning profit is called-
(a) Profit
(b) Capital
(c) Fixed assets
(d) None of these.

Question 7: 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

Question 8:  Which of the following transaction is not of financial character? 
(a) Purchase of asset on credit
(b) Purchase of asset for cash
(c) Withdrawing of money by proprietor from business
(d) Strike by employees.

Question 9: Which of the following limitations of accounting states that accounts may be manipulated to conceal vital facts :   
(A) Accounting is not fully exact
(B) Accounting may lead to window dressing
(C) Accounting ignores price level changes
(D) Accounting ignores qualitative elements

Question 10: Book–keeping is-
(a) An art
(b) A science
(c) An art and science both
(d) None of these.

Question 11: Drawings Account is a 
(a) Personal Account.
(b) Real Account.
(c) Nominal Account.
(d) None of these.

Question 12:  Balance of Capital Account is shown as   
(a) Capital Account
(b) Liability Account
(c) Revenue Account
(d) None of these

Question 13: Out of the following assets, which one is not an intangible asset?   
(a) Machinery
(b) Patents
(c) Goodwill
(d) Trade Mark

Question 14: 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

Question 15: Sundry Creditors Account is a   
(a) Revenue Account.
(b) Capital Account.
(c) Liability Account.
(d) None of these.

Question 16: The thing which is purchased and sold in the business is called_____________.
(a) Machine
(b) Furniture
(c) Goods
(d) Debtor

Question 17:  Purchase refers to the purchase of 
(a) goods for resale.
(b) stationery for office use.
(c) assets for the factory.
(d) None of the above.

Question 18: If accounting information is based on facts and it is verifiable by documents it has the quality of__________________.   
(A) Relevance
(B) Reliability
(C) Understandability
(D) Comparability

Question 19: Which of the following is not a qualitative characteristic of accounting information?   
(a) Reliability
(b) Understandability
(c) Comparability
(d) Materiality

Accountancy Class 11 MCQs for Chapter 2

Question 20: Current assets do not include: 
(a) Debtors
(b) Motor Car
(c) Bank Balance
(d) Prepaid Expenses

Question 21: Tangible Assets do not include: 
(a) Goodwill
(b) Furniture
(c) Stock
(d) Cash

Question 22: Which of the following is not an internal user of financial statements?   
(a) Board of Directors
(b) Managers
(c) Employees
(d) Lenders

Question 23: A liability arises because of 
(a) cash transactions.
(b) credit transactions.
(c) cash as well as credit transactions.
(d) None of these.

Question 24:  The amount invested by the proprietor in a business is called 
(a) capital.
(b) cash.
(c) revenues.
(d) loan.

Question 25: The art of recording all business transactions in a systematic manner in a set of books is called-
(a) Accounting
(b) Book–keeping
(c) Ledger
(d) None of these.

Question 26: The unsold goods left at the end of the year is called ______________.
(a) Bad Debts
(b) Opening Stock
(c) Closing Stock
(d) Liabilities

Question 27: The term sales is used only for the sales of ___________ and is never used for the sale of _________________. 
(a) Assets, Investments
(b) Assets, Goods
(c) Intangible Assets, Goods
(d) Goods, Assets

Question 28: Out of the following assets which one is NOT an intangible asset? 
(a) Patents
(b) Investments
(c) Goodwill
(d) Trademark

Question 29: External users of accounting information are :   
(A) Researchers
(B) Government
(C) Potential Investors
(D) All of the above

Accountancy Class 11 MCQs Chapter 4

Question 30: The person, firm or institution who does not pay the price in cash for the goods purchased or the services received is called-
(a) Creditor
(b) Proprietor
(c) Debtor
(d)None of these.

Question 31: Purchase refers to the buying of 
(a) Stationery for office use.
(b) Assets for the factory.
(c) Goods for resale.
(d) Investment.

Question 32: Revenue from Operations refers to   
(a) Revenue earned from Operating Activities.
(b) Revenue earned from activities that are not Operating Activities.
(c) Both (a) and (b).
(d) None of the above.

Question 33: Accounting does not show the realisable value of business. It is a/an   
(a) limitation of Accounting.
(b) advantage of Accounting.
(c) Both (a) and (b).
(d) None of these.

Question 34: __________________ represents the excess of assets over liabilities.
(a) Capital
(b) Debtors
(c) Creditors
(d) Profit

Accountancy Class 11 MCQs for Chapter 3

Question 35: A person who owes money to the firm is called ________. 
(a) Debtor
(b) Creditor
(c) Supplier
(d) None of these

Question 36: Goods means: 
(a) Commodity to be bought and sold
(b) Commodity to be bought but not to be sold
(c) Commodity to be used as an asset
(d) All of the above

Question 37: Ghanshyam is a furniture dealer. Which one of the following will not be recorded in his books?   
(a) Purchase of Timber for ₹ 50,000
(b) Sofa set worth ₹ 40,000 taken to his home
(c) Sale of household furniture for ₹ 5,000
(d) Dining table of Rs.30,000 given to his friend as a gift

Question 38: The process of recording, classifying and summarizing all business transactions in order to know the financial result is called –
(a) Book – keeping
(b)Accounting
(c) Journalizing
(d) None of these.

Question 39: The things or properties which helps in smooth functioning of the business and which are owned by the business are called ________ of the business.
(a) Liabilities
(b) Capital
(c) Profit
(d) Assets

Question 40: Which of the following is the most relevant accounting information for taxation authorities?   
(a) Cash Balance of the firm
(b) Book Value of the Fixed Assets
(c) Credit Sales of the year
(d) Profit generated during the year