We have compiled the NCERT MCQ Questions for Class 11 Accountancy Chapter 1 Introduction to Accounting with Answers Pdf free download covering the entire syllabus. Practice MCQ Questions for Class 11 Accountancy with Answers on a daily basis and score well in exams. Refer to the Introduction to Accounting Class 11 MCQs Questions with Answers here along with a detailed explanation.
Introduction to Accounting Class 11 MCQs Questions with Answers
Choose the correct option.
Question 1.
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.
Answer
Answer: (b) Book – keeping
Question 2.
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.
Answer
Answer: (b) Accounting
Question 3.
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.
Answer
Answer: (b) Capital
Question 4.
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.
Answer
Answer: (c) Debtor
Question 5.
Book – keeping is-
(a) An art
(b) A science
(c) An art and science both
(d) None of these.
Answer
Answer: (c) An art and science both
Question 6.
Which of the following is not a business transaction?
(a) Bought furniture of Rs. 10,000 for business
(b) Paid for salaries of employees Rs. 5,000
(c) Paid sons fees from her personal bank account Rs. 20,000
(d) Paid sons fees from the business Rs. 2,000
Answer
Answer: (c) Paid sons fees from her personal bank account Rs. 20,000
Question 7.
Deepti wants to buy a building for her business today. Which of the following is the relevant data for his decision?
(a) Similar business acquired the required building in 2000 for Rs. 10,00,000
(b) Building cost details of 2003
(c) Building cost details of 1998
(d) Similar building cost in August, 2005 Rs. 25,00,000
Answer
Answer: (a) Similar business acquired the required building in 2000 for Rs. 10,00,000
Question 8.
Which is the last step of accounting as a process of information?
(a) Recording of data in the books of accounts
(b) Preparation of summaries in the form of financial statements
(c) Communication of information
(d) Analysis and interpretation of information
Answer
Answer: (c) Communication of information
Question 9.
Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented?
(a) Understandability
(b) Relevance
(c) Comparability
(d) Reliability
Answer
Answer: (a) Understandability
Question 10.
Use of common unit of measurement and common format of reporting promotes
(a) Comparability
(b) Understandability
(c) Relevance
(d) Reliability
Answer
Answer: (a) Comparability
Fill in the blanks:
Question 1.
Information in financial reports’is based on ……………. transactions.
Answer
Answer: economic
Question 2.
Internal users are the ……………… of the business entity.
Answer
Answer: management/employees
Question 3.
A ………………. would most likely use an entities financial report to determine whether or not the business entity is eligible for a loan.
Answer
Answer: creditor
Question 4.
The Internet has assisted in decreasing the ………………… in issuing financial reports to users.
Answer
Answer: time-gap
Question 5.
………………….. users are groups outside the business entity, who uses the information to make decisions about the business entity.
Answer
Answer: external
Question 6.
Information is said to be relevant if it is ……………….
Answer
Answer: free from bias
Question 7.
The process of accounting starts with …………….. and ends with ……………….
Answer
Answer: identifying the transactions, communicating information
Question 8.
Accounting measures the business transactions in terms of ……………….. units.
Answer
Answer: monetary
Question 9.
Identified and measured economic events should be recording in ……………….. order.
Answer
Answer: chronological
Question 10.
The document certifying the purchase or sale of goods or any monetary transaction is called …………….
Answer
Answer: Voucher
Question 11.
The thing which is purchased and sold in the business is called …………….
Answer
Answer: Goods
Question 12.
The things or properties which helps in smooth functioning of the business and which are owned by the business are called ……………. of the business.
Answer
Answer: Assets
Question 13.
The unsold goods left at the end of the year is called ……………..
Answer
Answer: Closing stock
Question 14.
…………… represents the excess of assets over liabilities.
Answer
Answer: Capital
State True or False:
Question 1.
Trade discount is given on credit transactions only.
Answer
Answer: False
Question 2.
Furniture purchased by a Trader dealing in Furniture will be treated as ‘purchases’ for him.
Answer
Answer: True
Question 3.
Cash is a Fixed Asset of a Business.
Answer
Answer: False
Question 4.
The goods invested at the commencement of the business is called closing stock.
Answer
Answer: False
Match the Following
|
Column A |
Column B |
| 1. Building | (a) Debit |
| 2. Salary | (b) Credit |
| 3. Left side | (c) Asset |
| 4. Right side | (d) Expense |
| 5. Vouchers | (e) Written document. |
Answer
Answer:
|
Column A |
Column B |
| 1. Building | (c) Asset |
| 2. Salary | (d) Expense |
| 3. Left side | (a) Debit |
| 4. Right side | (b) Credit |
| 5. Vouchers | (e) Written document. |
Answer in one word/sentence:
Question 1.
Any legal activity performed for earning profit is called.
Answer
Answer: Business
Question 2.
The head under which transactions pertaining to a person, institution, firm, expenses, assets etc. is recorded is called.
Answer
Answer: Account
Question 3.
The system in which only one aspect of the transaction is recorded is called.
Answer
Answer: Single entry system
Question 4.
The concession given on cash transactions is called.
Answer
Answer: Cash discount
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