CBSE Class 11 Accountancy Theory Base Of Accounting MCQs

Question :  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
Answer :  A

Question :  The Trading and Profit and Loss Account is prepared under which attribute of accounting:
a) Summarising
b) Recording
c) Classifying
d) Analysis and Interpretation
Answer :  A

Question :  Identified and measured economic events should be recorded in _________ order.
a) Chronological
b) Financial
c) Proper
d) Monetary
Answer :  A

Question :  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.
Answer :  A

Question :  IFRS (International Financial reporting standards) are based on:
a) Fair value
b) Historical cost
c) Both historical cost and fair value.
d) None of the options
Answer :  A

Question :  IFRS are:
a) Principles based accounting standards
b) Rule based accounting standards
c) Partially rule and partially principles
d) None of the options
Answer :  A

Question :  IAS adopted by IASB and still in force are:
a) 29
b) 41
c) 9
d) 10
Answer :  A

Question :  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
Answer :  A

Question :  A liability arises because of:
a) Credit transaction
b) Cash transaction
c) None of the options
d) Cash and credit transaction
Answer :  A

Question :  Which one of the following statement is correct?
a) Income = Revenue Expenses.
b) Income = Expenses - Revenue.
c) Expenses = Income - Revenue.
d) Income= Profits - Expenses.
Answer : A
 
Question :  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.
Answer :  A

Question :  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.
Answer :  A

Question :  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
Answer :  A

Question :  Return Inward is the term used for:
a) Sales Return
b) Purchase Return
c) Credit purchase
d) Credit Sales
Answer :  A

Question :  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
Answer :  A

Question : Among the following assets, which one is fictitious asset?
a) Debit balance of Profit &loss A/c
b) Goodwill
c) Patents
d) Oil wells
Answer :  A

Question : 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
Answer :  A

Question : Which one of the following is NOT the qualitative characteristic of accounting?
a) Completeness
b) Reliability
c) Understandability
d) Relevance
Answer :  A

Question : Which of the following is the NOT sub field of accounting?
a) Book Keeping
b) Stock Broking
c) Financial Accounting
d) Management Accounting
Answer :  A

Question : Reliability of accounting information depends upon:
a) Verifiability
b) Neutrality
c) Understandability
d) Comparability
Answer :  A

Question : The last step in the process of accounting is:
a) Communicating the results to users
b) Classifying
c) Analysis
d) Interpretation
Answer :  A