MCQ Questions for Class 11 Accountancy Chapter 2 Theory Base of Accounting with Answers

We have compiled the NCERT MCQ Questions for Class 11 Accountancy Chapter 2 Theory Base of 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 Theory Base of Accounting Class 11 MCQs Questions with Answers here along with a detailed explanation.

Theory Base of Accounting Class 11 MCQs Questions with Answers

Choose the correct option.

Question 1.
During the lifetime of an entity accounting produce financial statements in accordance with which basic accounting concept:
(a) Conservation
(b) Matching
(c) Accounting period
(d) None of the above

Answer

Answer: (c) Accounting period


Question 2.
When information about two difference enterprises have been prepared presented in a similar manner the information exhibits the characteristic of:
(a) Verifiability
(b) Relevance
(c) Reliability
(d) None of the above

Answer

Answer: (d) None of the above


Question 3.
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

Answer

Answer: (a) Going concern


Question 4.
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

Answer

Answer: (b) Reliability and comparability


Question 5.
Generally the duration of an Accounting period is of-
(a) 6 months
(b) 3 months
(c) 12 months
(d) 1 month.

Answer

Answer: (c) 12 months


Question 6.
The sum of Liabilities and Capital is-
(a) Expense
(b) Income
(c) Drawings
(d) Assets.

Answer

Answer: (d) Assets.


Question 7.
In India, the accounting standard board was set up in the year-
(a) 1972
(b) 1977
(c) 1956
(d) 1932.

Answer

Answer: (b) 1977


Question 8.
The basic accounting postulates are denoted by –
(a) Concepts
(b) Book – keeping
(c) Accounting standards
(d) None of these.

Answer

Answer: (a) Concepts


Question 9.
The amount drawn by businessmen for his personal use is-
(a) Capital
(b) Drawing
(c) Expenditure
(d) Loss.

Answer

Answer: (b) Drawing


Question 10.
Meaning of credibility of going concern is:
(a) Closing of business
(b) Opening of business
(c) Continuing of business
(d) None of these.

Answer

Answer: (c) Continuing of business


Fill in the blank with correct word

Question 1.
Recognition of expenses in the same period as associated revenues is called ………………. concept.

Answer

Answer: Matching


Question 2.
The accounting concept that refers to the tendency of accountants to resolve uncertainty and doubt in favour of understating assets and revenues and overstating liabilities and expenses is known as ………………….

Answer

Answer: Conservatism


Question 3.
Revenue is generally recognised at the point of sale denotes the concept of ………………….

Answer

Answer: Revenue Realisation


Question 4.
The ………………… concept requires that the same accounting method should be used from one accounting period to the next.

Answer

Answer: Consistency


Question 5.
The ……………….. concept requires that accounting transaction should be free from the bias of accountants and others.

Answer

Answer: Objectivity.


Question 6.
…………… is a document that verifies the business transaction.

Answer

Answer: Voucher


Question 7.
The existence of business is different from its ………………

Answer

Answer: Owner


Question 8.
……………. has been applied on accountants by accounting standard board, law or professional institutions.

Answer

Answer: Code of conduct


Question 9.
……………. aspects are affected in every transaction.

Answer

Answer: Two


Answer in one word/sentence:

Question 1.
When was Indian Accounting standard board formed?

Answer

Answer: 21 st April, 1977


Question 2.
“The rules and conventions of accounting are commonly referred to as principles.” Who said it?

Answer

Answer: R.N. Anthony


Question 3.
On what basis accounting principles are developed?

Answer

Answer: Accounting Conventions & Concepts


Question 4.
Which concept denotes that the existence of business is separate from its owner?

Answer

Answer: Business entity concept.


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