Accountancy Class 11 Chapter 1 Introduction to Accounting Multiple Choice Questions ( MCQ )
Table of Contents
Q.1. Book Keeping and Accounting
(a) means same and are used interchangeably.
(b) does not mean same and are not used interchangeably.
(c) means both (a) and (b).
(d) None of the above.
Q.2. Accounting
(a) includes Book Keeping.
(b) does not include Book Keeping,
(c) may or may not include Book Keeping.
(d) None of these.
Q.3. Which of the following will not be recorded in the books of account?
(a) Sales of goods
(b) Payment of salary
(c) Quality of staff
(d) Purchase of Goods
Q.4. Book Keeping is concerned with
(a) recording financial data relating to business operations.
(b) designing for systems recording, classifying and summarising
(c) interpreting data for internal and external users.
(d) All of the above.
Q.5. Which is the last step of accounting as a process of information?
(a) Recording the transaction
(b) Preparation of financial statements
(c) Communication of information
(d) Analysis and interpretation of information
Q.6. Basic function of financial accounting is to
(a) record all business transactions
(b) interpret financial data.
(c) assist the management.
(d) None of these.
Q.7. Transactions are posted into Ledger Account from
(a) Vouchers.
(b) Journal book.
(c) Bank Statement.
(d) None of these
Q.8.Which of the following is not a business transaction?
(a) Purchase of goods for resale amounted to Rs 50,000
(b) Paid salaries and wages amounted to Rs 10,000
(c) Paid rent for office premises Rs 5,000
(d) Purchased a LCD for personal use
Q.9. Which of the following transactions will not be recorded in the books of account?
(a) Purchased a LCD for personal use, paying the amount from personal bank
(b) Purchased machinery for manufacture.
(c) Purchased machinery for resale.
(d) Paid salaries and wages.
Q.10. Accounting does not show the realisable value of business. It is a/an
(a) limitation of Accounting.
(6) advantage of Accounting.
(c) Both (a) and (b).
(d) None of these.
Q.11. Which of the following is not an internal user of financial statements?
(a) Board of Directors
(b) Managers
(c) Employees
(d) Lenders
Q.12.Which of the following is not a characteristic of accounting?
(a) Recording non-monetary transactions
(b) Classifying
(c) Analysis
(d) Summarising
Q.13. Which of the following is a limitation of accounting?
(a) Assistance to Management
(b) Replaces Memory
(c) Unrealistic Information
(d) Evidence in Court
Q.14. Cost of Goods Manufactured is determined by
(a) Financial Accounting.
(b) Cost Accounting.
(c) Management Accounting.
(d) Human Resource
Q.15. Qualitative characteristic of Accounting includes
(a) Reliability and Relevance.
(b) Understandability and Comparability.
(c) Both (a) and (b).
(d) None of the above.
Q.16. Which of the following is not a qualitative characteristic of accounting information?
(a) Reliability
(b) Understandability
(c) Comparability
(d) Materiality
Q.17. Which qualitative characteristic of accounting information is reflected when accounting information is clearly presented?
(a) Reliability
(b) Relevance
(c) Comparability
(d) Understandability
Q.18. Which external user of accounting information is most interested in knowing the long-term solvency position of the firm?
(a) Employees
(b) Management
(c) Bank and Financial Institutions
(d) Researchers
Q.19. Accounting is
(a) A process concerned with summarising of the recorded transactions.
(b) Not the language of business.
(c) An art of recording, classifying and summarising financial transactions in a significant
(d) All of the above.
Q.20. Which of the following is the objective of Accounting?
(a) Systematic Recording
(b) Comparison and Evaluation
(c) Solvency Position
(d) Forecasting
Q.21. Which of the following is not the user of accounting information?
(a) Short-term creditors
(b) Debtors
(c) Government
(d) Owners
Q.22. Which one is the advantage of accounting?
(a) Replacement of memory
(b) Shows the present value of the business
(c) Accounting does not record price level changes
(d) Accounting is not fully exact
Q.23. Out of the following which is the branch of Accounting?
(a) Financial Accounting
(b) Cost Accounting
(c) Management Accounting
(d) All of these
Q.24. Two primary qualitative characteristics of financial statements are
(a) Understandability and materiality.
(b) Relevance and reliability.
(c) Relevance and Materiality.
(d) All of these.
2. Fill in the blanks
(i) Scope of accountancy is _________________ than that of Book Keeping.
(ii) Book Keeping is a systematic record of ______________ transactions
(iii) Accounting records can be produced as _________________ in the court of law.
(iv) Information in financial reports is based on transactions and _________________.
(v) The process of accounting starts with ________________ and ends with _____________________.
(vi) Accounting measures the business transactions in terms __________________ of units.
(vii) Identified and measured economic events should be recorded in __________________ order.
(viii) In every transaction, _________________ aspects are involved.
Answers:
(i) wider
(ii) financial
(iii) evidence
(iv) financial, event
(v) Identifying the transaction, communicating information
(vi) monetary
(vii) chronological
(viii) two
