MCQ Questions for Class 11 Accountancy Chapter 9 Financial Statements 1 with Answers

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Financial Statements 1 Class 11 MCQs Questions with Answers

Choose the correct option.

Question 1.
The financial statements consist of:
(a) Trial balance
(b) Profit and Loss account
(c) Balance sheet
(d) (a) & (c)
(e) (b) & (c)

Question 2.
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

Answer: (c) Gross Profit, Operating Profit, Net Profit

Question 3.
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)

Answer: (c) Expenses of a purely financial nature

Question 4.
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

Answer: (c) Operating profit = Net profit + Non-operating expenses – Non-operating incomes

Question 5.
(a) Gross profit
(b) Net profit
(c) Net loss
(d) Gross profit or Gross loss

Answer: (d) Gross profit or Gross loss

Question 6.
Direct Expenses are entered in:
(b) profit & Loss Account
(c) Balance sheet
(d) None of these

Question 7.
Profit and loss Account discloses:
(a) Gross profit
(b) Gross profit or Gross loss
(c) Gross profit or Gross loss
(d) None of these

Answer: (b) Gross profit or Gross loss

Question 8.
Goodwill is a-
(a) Fixed Asset
(b) Current Asset
(c) Fictitious Asset
(d) None of these

Question 9.
Drawing is deducted from:
(a) Sales
(b) Purchase
(c) Returns outward
(d) Capital

Fill in the blanks:

Question 1.
Indirect Expenses are entered in …………….. account.

Question 2.
Gross profit or loss is transferred to …………….. account.

Question 3.
………….. accounts are prepared at the end of the year.

Question 4.
Balance sheet is a ………………

Question 5.
Increase in capital at the end of the year represents ………………..

State True or False

Question 1.
Gross profit is total revenue.

Question 2.
In trading and profit and loss account, opening stock appears on the debit side because it forms the part of the cost of sales for the current accounting year.

Question 3.
Rent, rates and taxes is an example of direct expenses.

Question 4.
If the total of the credit side of the profit and loss account is more than the total of the debit side, the difference is the net profit.

Question 5.
Capital is a fixed Liability.

Question 6
Closing stock is not shown in balance sheet.

Question 7.
Balance sheet is prepared on the basis of Trial balance.

Question 8.
Bad debt reserve is a loss.

Question 9.
Interest on drawings is loss of owner.

Match the items given under ‘A’ with the correct items under ‘B’
Question 1.

 Column A Column B I. Closing stock is credited to (a) Trial balance II. Accuracy of book of account is tested by (b) Trading account III. On returning the goods to seller, the buyer sends (c) Credit note IV. The financial position is determined by (d) Balance sheet V. On receiving the returned goods from the buyer, the seller sends (e) Debit note

 Column A Column B I. Closing stock is credited to (b) Trading account II. Accuracy of book of account is tested by (a) Trial balance III. On returning the goods to seller, the buyer sends (e) Debit note IV. The financial position is determined by (d) Balance sheet V. On receiving the returned goods from the buyer, the seller sends (c) Credit note

Question 2.

 Column A Column B 1. Goodwill (a) Profit & loss Account 2. Creditors (b) Fixed Asset 3. Building (c) Intangible Asset 4. Net profit (d) Liabilities 5. Balance sheet (e) Direct expenses 6. Cartage (f) Closing capital.

 Column A Column B 1. Goodwill (c) Intangible Asset 2. Creditors (d) Liabilities 3. Building (b) Fixed Asset 4. Net profit (a) Profit & loss Account 5. Balance sheet (f) Closing capital. 6. Cartage (e) Direct expenses

Question 1.
When cost of goods sold is deducted from net sales, we get.

Question 2.
The Expenses written in profit & loss Account are known as.

Question 3.
The statement of Assets & Liabilities is called.

Question 4.
Give an example of current Liability.

Question 5.
In which side of balance sheet, the goods in transit are shown.