We have compiled the NCERT MCQ Questions for Class 11 Accountancy Chapter 9 Financial Statements 1 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 Financial Statements 1 Class 11 MCQs Questions with Answers here along with a detailed explanation.
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)
Answer
Answer: (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
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
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
Answer: (c) Operating profit = Net profit + Non-operating expenses – Non-operating incomes
Question 5.
Trading Account discloses-
(a) Gross profit
(b) Net profit
(c) Net loss
(d) Gross profit or Gross loss
Answer
Answer: (d) Gross profit or Gross loss
Question 6.
Direct Expenses are entered in:
(a) Trading Account
(b) profit & Loss Account
(c) Balance sheet
(d) None of these
Answer
Answer: (a) Trading Account
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
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
Answer
Answer: (a) Fixed Asset
Question 9.
Drawing is deducted from:
(a) Sales
(b) Purchase
(c) Returns outward
(d) Capital
Answer
Answer: (b) Purchase
Fill in the blanks:
Question 1.
Indirect Expenses are entered in …………….. account.
Answer
Answer: Profit & loss account
Question 2.
Gross profit or loss is transferred to …………….. account.
Answer
Answer: Profit & loss account
Question 3.
………….. accounts are prepared at the end of the year.
Answer
Answer: Final
Question 4.
Balance sheet is a ………………
Answer
Answer: Statement
Question 5.
Increase in capital at the end of the year represents ………………..
Answer
Answer: Profit
State True or False
Question 1.
Gross profit is total revenue.
Answer
Answer: True
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.
Answer
Answer: False
Question 3.
Rent, rates and taxes is an example of direct expenses.
Answer
Answer: True
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.
Answer
Answer: False
Question 5.
Capital is a fixed Liability.
Answer
Answer: True
Question 6
Closing stock is not shown in balance sheet.
Answer
Answer: False
Question 7.
Balance sheet is prepared on the basis of Trial balance.
Answer
Answer: True
Question 8.
Bad debt reserve is a loss.
Answer
Answer: False
Question 9.
Interest on drawings is loss of owner.
Answer
Answer: True
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 |
Answer
Answer:
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. |
Answer
Answer:
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 |
Answer in one word/sentence:
Question 1.
When cost of goods sold is deducted from net sales, we get.
Answer
Answer: Gross profit
Question 2.
The Expenses written in profit & loss Account are known as.
Answer
Answer: Indirect expenses
Question 3.
The statement of Assets & Liabilities is called.
Answer
Answer: Balance sheet
Question 4.
Give an example of current Liability.
Answer
Answer: Bank overdraft
Question 5.
In which side of balance sheet, the goods in transit are shown.
Answer
Answer: Asset side
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