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

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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