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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