MCQ Question for Accountancy Class 11 with Answers Chapter 1 Introduction to Accounting

Check the below NCERT MCQ Class 11 Accountancy Chapter 1 Introduction to Accounting with Answers available with PDF free download. MCQ Questions for Class 11 Accountancy with Answers were prepared based on the latest syllabus and examination pattern issued by CBSE, NCERT and KVS. Our teachers have provided below Introduction to Accounting Class 11 Accountancy MCQs Questions with answers which will help students to revise and get more marks in exams

Introduction to Accounting Class 11 Accountancy MCQs Questions with Answers

Refer below for MCQs Introduction to Accounting with solutions. Solve questions and compare with the answers provided below

Question. X is a part of inventory of a firm. X needs further processing for converting into finished products i.e X consists of partly finished goods or semi-finished goods. Identify X.
(a) Inventory of raw material
(b) Inventory of work-in-progress
(c) Inventory of finished goods
(d) Inventory of stock-in-trade

Question. The person who still owes some amount to the business are termed as:
(a) Creditors
(b) Bills Payable
(c) Debtors
(d) Bills Receivable

Question. It is the cost incurred in producing goods and services:
(a) Expenses
(b) Incomes
(c) Profit
(d) Loss

Question. Which one is a capital transaction?
(a) Purchase of goods
(b) Payment of wages
(c) Sales of goods
(d) Purchase of machinery

Question. The financial information provided by an accounting system is needed by:
(a) Owners
(b) Creditors
(c) Management
(d) All of these

Question. A document prepared to authorize and describe an expenditure is termed as:
(a) Cash memo
(b) Voucher
(c) Bill
(d) Debit

Question. A percentage reduction from the list price of merchandise allowed to retailers by whole seller is called:
(a) Commission
(b) Cash discount
(c) Trade discount
(d) Allowance 

Question. Resources minus capital equities is equal to:
(a) Assets
(b) Equity
(c) Revenue
(d) Liabilities

Question. Which is received at the time of making the payment is known as:
(a) Trade discount
(b) Rebate
(c) Cash discount
(d) None of these

Question. Bills ……… is an accounting term for bills of exchange drawn on ……… received by way of endorsement from them.
(a) payable, debtors
(b) receivable, creditors
(c) payable, creditors
(d) receivable, debtors

Question. Discounts are recorded in books of accounts.
(a) True
(b) False
(c) Partially true
(d) Can’t say

Question. Stores is one of the accounting terms used to describe certain kind of materials in the production process. Which of the followng is an example of stores?
(a) Lubricants
(b) Spare parts of machinery
(c) Packingmaterials
(d) All of the above

Question. What was the capital initially invested?
(a) ₹ 10,000
(b) ₹ 1,00,000
(c) ₹ 1,10,000
(d) Can’t be determined

Question. Which type of liability is discussed inthe passage?
(a) Non-current
(b) Current
(c) Both (a) and (b)
(d) Can’t be determined

Question. Which asset is discussed in the line, “The quality of the company’s product was very high and therefore, it could develop a reputation for itself in the market and business was flourishing”?
(a) Tangible
(b) Intangible
(c) Current
(d) Both (a) and (c)

Question. Which branch of accounting is liked by Sen?
(a) Financial accounting
(b) Cost accounting
(c) Management accounting
(d) Tax accounting

Question. Shetty talked about which type of users of accounting?
(a) Internal users
(b) External users
(c) Both (a) and (b)
(d) None of these

Question. Which advantage of accounting is being talked by Shetty in last part of first para?
(a) Provides information regarding profit and loss
(b) Provides completes and systematic record
(c) Enables comparative study
(d) Evidence in legal matters

Question. The passage involves capital receipts (apart from initial capital invested).
(a) True
(b) False
(c) Partially true
(d) Can’t say

Question. Which type of discount is being discussed in the last part of passage?
(a) Trade discount
(b) Cash discount
(c) Both (a) and (b)
(d) Can’t be determined

Question. In the context of business, profit and gain are the same thing.
(a) True
(b) False
(c) Partially false
(d) None of the above

Question. Which of the following defines loss in the correct manner? 
(i) Result of the business for a period when total expenses exceed the total revenues.
(ii) Loss due to fire, theft, accident against which the firm receives no benefit.
(a) Only (i)
(b) Only (ii)
(c) Both (i) and (ii)
(d) Neither (i) nor (ii)

Question. When purchased goods are returned to the suppliers, these returns are termed as ……… .
(a) Return inwards
(b) Inward returns
(c) Return outwards
(d) Outward returns

 Question. Goodwill is the assets:
(a) Intangible assets
(b) Tangible assets
(c) Current assets
(d) All of these 

Question. Amount or kinds which the proprietor has invested in a business is known as:
(a) Investment
(b) Capital
(c) Assets
(d) Liabilities 

Question. The excess of current assets over the current liabilities is called:
(a) Working capital
(b) Net current assets
(c) a and b both
(d) None of these

Question. The goods available with the business for sale on a particular date is known as:
(a) Stock
(b) Creditors
(c) Debtors
(d) None of these

Question. The excess of expenses of a period over its related revenues is termed as:
(a) Profit
(b) Loss
(c) Gain
(d) Expenses

Question. Current assets do not include:
(a) Motor car
(b) Inventory
(c) Bills Receivable
(d) Debtors

Question. Which one an example of current liabilities:
(a) Bills Receivable
(b) Debtors
(c) Creditors
(d) None of these

Question. Current liabilities are liabilities that are payable with in:
(a) 2 years
(b) 1 year
(3) years
(d) 4 years

Question. A language of business is known as:
(a) Accountancy
(b) Accounting
(c) a and b both
(d) All of these

Question. Purchases refer to the purchase of:
(a) Stationery for office use
(b) Goods for resale
(c) Assets for the factory
(d) none of these

Question. Inventory valued at:
(a) Cost price
(b) Market price
(c) Whichever is less
(d) Whichever is more

Question. The person who draw a bill of exchange is known as:
(a) Drawer
(b) Drawee
(c) Payee
(d) Endorsee

Question. Goods purchased for resale are called:
(a) Sales
(b) Purchases
(c) Return inward
(d) Return outward

Question. Which of the following is not a fixed assets:
(a) Building
(b) Land
(c) Machinery
(d) B/R

Question. Which of the following is not a current assets:
(a) Plant
(b) Debtors
(c) B/R
(d) Stock

Question. The amount of cash or goods which is withdrawal by proprietor from business for its private uses is called:
(a) Capital
(b) Expenses
(c) Drawings
(d) Expenditure

Question. Which branch is used for calculating cost of product is:
(a) Financial Accounting
(b) Management Accounting
(c) Cost Accounting
(d) All of these

Question. Who is the father of Accounting:
(a) Luca Pacioli
(b) Charles Babeje
(c) Henry Fayol
(d) F. W. Tailor

Question. Current assets minus current liabilities is equal to:
(a) Working capital
(b) Profit
(c) Capital
(d) Loss

Question. Double entry system of accounting means:
(a) Entry in two sets of books
(b) Entry in two dates
(c) Entry for two aspects of the transaction
(d) Entry for one aspects of the transaction

Question. The activities of selecting, processing and reporting the information can be described as:
(a) Book-keeping
(b) Accounting
(c) Auditing
(d) Casting

Question. Business organization involves:
(a) Social event
(b) Economic event
(c) Welfare event
(d) None of these

Question. A person who owns business Alone is called:
(a) Investor
(b) Vendor
(c) Proprietor
(d) Buyer

Question. Recording business transactions in a set of books is known as:
(a) Book keeping
(b) Ledger
(c) Accountancy
(d) All of these

Question. The goods unsold at the end of the accounting year are called:
(a) Opening stock
(b) Goods
(c) Closing stock
(d) All of these

Question. Property of the business is called:
(a) Assets
(b) Liabilities
(c) Expenditure
(d) Gain

Question. Winning a court case an example of:
(a) Profit
(b) Income
(c) Gain
(d) Revenue

Question. Objective of Accounting are:
(a) Calculate profit and loss
(b) Maintain records of business
(c) Depict the financial position
(d) All of these 

Question. Long term transactions are also called:
(a) Paper transaction
(b) Capital transaction
(c) Revenue transaction
(d) Non monetary transaction

 Question. The mordern system of recording business transactions in the books of accounts is known as:
(a) Mordern system
(b) Single entry system
(c) American system
(d) Double entry system

Fill In The Blanks 

Question. Main function of accounting is to maintain complete and systematic record of —————–

Question. The amount which is paid for increasing profit earning capacity of business is called ————- .

Question. The branch of accounting which is concerned with GST and Income tax is known as —————–.

Question. Word used for not showing the actual position in the financial statement is —————– .

Question. Branch of accounting used to calculate cost of product is —————–. 

Question. Branch of accounting which assists in systematic recording of business transactions is known as —————–.

Question. Rent outstanding is an example of current liabilities whereas computer software for Microsoft is an example————.

Question. For the purpose of calculating net profit or net loss at the end of the accounting year a statement is prepared called ——————–.

Question. Amount invested in the business by the owner is known as——————.

Question. An event involving some value between two or more entities is known as —————– . 

Question. At the end of the year following balances are given: Capital Rs. 100,000 Assets Rs. 5 00, 000 the amount of outside liabilities will be————–.

Question. The term purchase is used for purchase of goods only but not for purchase of———-. 

Question. Total revenue earned from goods or services sold during accounting year is called——–. 

Question. Use of common unit of measurement and common format of reporting promotes ———. 

Question. Ethical or environmental activities of the firm are related which responsibility of business ———–.

Question. Branch of commerce which keeps a record of monetary transactions in a set of books is called ————————.

Question. Creditors and banks are the example of users of accounting and there known as ——– users.

True / False

Question. Management is external users of Accounting Information.

Question. A transaction is any event or condition, such as buying or selling that must be recorded in the financial records of a business.

Question. Accounting ascertains the progress of the business from year to year.

Question. Assets which can be converted into cash within a year is known as Fixed Assets.

Question. Creditors are the external users of Accounting Information.

Question. Those debts that are payable after a period of one year is known as Current Liabilities. 

Question. Plant & Machinery is a type of Fixed Assets.

Question. Accounting is a language of business.

Question. Double Entry System of Accounting means entry in two sets of books.

Question. Accounting helps a firm in the assessment of its correct Tax Liabilities.

Question. Accounting do not gives the complete picture of the financial conditions of the business unit. 

Question. GST is an indirect tax which is levied on the supply of goods & services.

Question. Trade Discount is deducted from list price of the product.

Question. Accounting makes records of qualitative aspects of business.

Question. In accountancy, all business transactions are recorded as having dual aspect.

Question. Current Assets include Bank Loans.

Question. The benefit of an expenditure lasts for more than a year is treated as Revenue Expenditure. 

Question.

1. Summarisation	A. Trial balance
2. Goods	B. In which business unit is dealing

Question.

1. Entity	A. Definite individual existence
2. Classification	B. Journal
	C. Ledger
	D. Assets

Question.

1. Materials held by an enterprise	A. Turnover
2. Total sales of a particular period	B. Stock of finished goods
	C. Bad debts
	D. Stores

Question.

1. Debtors	A. Cash in hand
2. Deployment of funds in the share	B. Current assets
	C. Investment

Question.

1. Current assets + fixed assets – capital	A. Bad debts
2. Irrecoverable amount from debtor	B. Internal liabilities
	C. External liabilities
	D. Provision for bad debts

Question.

1. Business transaction	A. Debit balance of profit and loss account
2. Fixed assets	B. Economic activity
3. Nominal assets

Question.

1. Assets – External Liabilities	A. Current Assets – Current Liabilities
2. Working Capital	B. Total liabilities
	C. Capital
	D. Fixed Assets – Fixed Liabilities

Question.

1. Cost accounting	A. Help in assist the managers
2. Management Accounting	B. Timeliness
3. Relevance

Question.

1. Sales	A. Total revenue from selling of an asset
2. Liabilities	B. Properties of an enterprise
	C. Obligations of an enterprise
	D. Total revenue from goods and services

Question.

1. Transactions	A. Excess of revenues over its related expenses
2. Profit	B. Winning a court case
	C. Involving values between two or more entities

Question.

1. Comparability	A. Payable within a year
2. Long term liability	B. Common unit of measurement
	C. payable after a period of one year
	D. Common values is must

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