NCERT Class 11 Chapter 2 Accountancy Theory Base of Accountancy MCQ

NCERT Class 11 Chapter 2 Accountancy Theory Base of Accountancy MCQ | Questions & Answers: Go through this article to have direct access to the NCERT Class 11 Chapter 2 Accountancy Theory Base of Accountancy Multiple Choice Questions & Answers Quiz. After submitting the MCQ Online Quiz for Class 11 Accountancy Theory Base of Accountancy, don’t forget to know your final score & grade.

Page 1 of 3

1. Which of the following categories of information is NOT provided by Financial Accounting?

A. Overheads

B. Cash Flow

C. Financial Position

D. Profit or Surplus

2. The Trading and Profit and Loss Account is prepared under which attribute of accounting:

A. Summarising

B. Recording

C. Classifying

D. Analysis and Interpretation

3. Identified and measured economic events should be recorded in _________ order.

A. Chronological

B. Financial

C. Proper

D. Monetary

4. Which of the following statements is correct:

A. Book Keeping is a part of Accounting.

B. Accounting is a part of book-keeping.

C. The term book-keeping and accounting can be used interchangeably.

D. Book keeping is not a part of accounting.

5. IFRS (International Financial reporting standards) are based on:

A. Fair value

B. Historical cost

D. Both historical cost and fair value.

D. None of the options

6. IFRS are:

A. Principles-based accounting standards

B. Rule-based accounting standards

C. Partially rule and partially principles

D. None of the options

7. IAS adopted by IASB and still in force are:

A. 29

B. 41

C. 9

D. 10

8. IASB (International Accounting Standards Board) upon coming into existence has adopted:

A. All IAS and SIC (Standing Interpretation Boar

B. Some IAS and SIC

C. None of the options

D. None of the IAS and SIC

9. A liability arises because of:

A. Credit transaction

B. Cash transaction

C. None of the options

D. Cash and credit transaction

10. Which one of the following statement is correct?

A. Income = Revenue Expenses.

B. Income = Expenses - Revenue.

C. Expenses = Income - Revenue.

D. Income= Profits - Expenses.

Page 2 of 3

11. Which of the following advantages of accounting states that accounting helps in decision making and facilitates control?

A. Assistance to management.

B. Facilitates sale of business.

C. Facilitates comparison

D. Facilitates loans.

12. Which of the following limitations of accounting states that accounts may be manipulated to conceal vital information?

A. Accounting leads to window dressing

B. Accounting is not fully exact

C. Accounting ignores price level changes.

D. Accounting ignores qualitative concepts.

13. Out of the following transaction which of the following will not be recorded in books of account:

A. Purchase an LCD for owners personal use

B. Purchase of goods for resale amounting of Rs.10,000

C. Paid salaries and wages amounting to Rs. 20,000

D. Paid rent for office premises Rs. 1000

14. Return Inward is the term used for:

A. Sales Return

B. Purchase Return

C. Credit purchase

D. Credit Sales

15. The term purchase is used only for the purchase of______and is never used for the purchase of______

A. Goods, Assets.

B. Assets, Investment

C. Assets, Goods

D. Intangible Assets, Goods

16. Among the following assets, which one is fictitious asset?

A. Debit balance of Profit &loss A/c

B. Goodwill

C. Patents

D. Oil wells

17. Which of the following user needs accounting information to ensure the safety and recovery of the loan advanced?

A. Banks & financial institution

B. Government

C. Employees

D. Owners

18. Which one of the following is NOT the qualitative characteristic of accounting?

A. Completeness

B. Reliability

C. Understandability

D. Relevance

19. Which of the following is the NOT sub field of accounting?

A. Book Keeping

B. Stock Broking

C. Financial Accounting

D. Management Accounting

20. Reliability of accounting information depends upon:

A. Verifiability

B. Neutrality

C. Understandability

D. Comparability

Page 3 of 3

21. The last step in the process of accounting is:

A. Communicating the results to users

B. Classifying

C. Analysis

D. Interpretation

22. Generally the duration of an Accounting period is of-

A. 6 months

B. 3 months

C. 12 months

D. 1 month.

23. The sum of Liabilities and Capital is-

A. Expense

B. Income

C. Drawings

D. Assets.

24. In India, the accounting standard board was set up in the year-

A. 1972

B. 1977

C. 1956

D. 1932.

25. The basic accounting postulates are denoted by –

A. Concepts

B. Bookkeeping

C. Accounting standards

D. None of these.