PRACTICE SHEET :- 2- MULTIPLE CHOICE QUESTIONS (MCQ)
ACCOUNTANCY CLASS - XI TIME-20 MINS
1. Source documents are also referred to as [1]
a) supporting documents b) notes c) invoices d) first information documents
2. Assertion (A) Management uses accounting information for short-term and long-term planning. (1]
Reason (R) Accounting provide comprehensive information financial status of the company.
a) Both Aand Rare true and Ris the correct explanation of A.
b)Both Aand Rare true but Risnot the correct explanation of A.
c) Ais true but Ris false.
d) A is false but R is true.
3 The data is classified for creating groups of accounts in the heads of : (1]
a) Assets, Owners' equity, Revenue and Expenses c) Assets, Liabilitiesand Capital
b) Assets,Capital, Liabilities, Revenue and Expenses d)Capital, Revenue and Expenses
4. Due to the following transactions, the totalof accounting equation willbe: [1]
i. Commenced business with cash 4,00,000
i. Purchased goods oncredit 1,75,000
[Link] costing * 1,00,000 sold at a profit of 20% for cash
iv. Rent paid 5,000
a)3,40,000 b)4,90,000 c) 5,90,000 d) 4,40,000
OR
From the following information, calculate the total assets of the business Capital during the period =
*80,000; Creditors = 60,000, Revenue during the period = 1,00,00 Expenses during the period =* 80,000; Value
of unsold stock = 20,000
a) 1,60,000 b) 80,000 c) 1,80,000 d) 1,40,000
5. Invoice is a source voucher for seller of goods (1]
a) for credit sales b) for cash sales c) for cash purchases d) for credit purchases
6. The main purpose of cost accounting is to ascertain of rendered by business. (1]
¿) total cost,goods b) total cost and per unit cost, goods and services
c) per unit cost, goods d)per unit cost, services
OR
The branches of accounting are:
a) Social Responsibility Accounting b)Cost Accounting c) Financial Accounting d) All of these
7. Which of the following statements is not appropriate in relation to Provision? [1]
a. Provision is acharge against profit.
b. Provision is created for known liability.
c. Provision is created for strengthening the financial position of the business.
d. Creation of provision satisfies the principle of conservatism.
a) Statement (d) is correct. b) Statement (b) is correct.
c) Statement (c) is correct. d) Statement (a) is correct.
8. The data is lassified for creating groups of accounts in the heads of: (1]
a) Assets, Liabilities and Capital b)Assets, Owners' equity, Revenue and Expenses
c) Assets, Capital, Liabilities, Revenue and Expenses d) Capital, Revenue and Expernses
OR
Credit means:
a)an increase in liability b) adecrease in liability
c) a decrease in proprietor's equity d) an increase in asset
9. As per Cost Concept, an asset is recorded in the books [1]
a) At going concern value b)At the price at which it was acquired
c) At liquidation value d) At market value
10. Accrual Basis of Accounting recognizes: [1]
i. Outstanding and Prepaid Expenses. ii. Accrued Incomes and Incomes Received in Advance.
ii. Both (i) and (ii). iv. None of these.
a) Statement (ii) is Correct. b) Statement (iii) is Correct.
c) Statement (i) is Correct. d) Statement (i) is Correct.
11. Which of the following is objective of provision? [1]
a) To meet unknown losses and liabilities b)To meet anticipated losses and liabilities
c) To hold funds d) Accumulate fund
12. When purchased goodsare returned to the suppliers, these returns are termed as: [1]
a) Return inwards b) Inward returns c) Outward returns d) Return outwards
13. Adebit note is prepared by: [1]
a)Seller b)Purchaser c) Banker d) Cashier
14. The accounting equation should remain in balance because every transaction affects how many accounts? [1]
a) Two or more b) Only One c) Only two d) Only three
15. Which one of the following is not a fictitious asset? (1)
a) Deferred revenue expenditure b)Loss on issue of debentures
c) Goodwill d) Discount on issue of shares
OR
Out of the following assetswhich one is not an intangible asset?
a) Investments b) Patents c) Goodwill d) Trademark
16. Purchases amount is recorded [1]
a) After deducting Trade Discount b)After adding GST
c) After adding carriage charges etc. paid by the seller d) All of these
17. \Which reserve are created for specific purpose [1]
a) Specific Reserve b) Dividendequalization fund
c) Capital Reserves d) Dividend fund
18. Single entry system of accounting is not reliable because [1]
a) The balance sheet cannot be prepared b) Trial balance cannot be prepared
c) Trading and profit and loss account cannot d) All of these
OR
Commission received in advance is to be shown in statement of affairs on
a) Liabilities side b)Total assets c) Total liabilities d) Cash balance
19. The time between the acquisition of an asset for processing and its conversion into cash and cash equivalent is
Called [1]
a) Production cycle b)Operating cycle c) production period d) Time gap
20. General Manager gets10% commission on net profit after charging such commission. Gross Profit 2,00,000; Wages
*22,000; Salaries 15,000; Carriage 11,000; Bad Debts 9,000; Drawings 5,500. Manager's Commission willbe:
[1]
a) 12,500 b)16,000 c) 14,000 d) 13,000
OR
Net profit of a firm before charging the manager's commission is 21,000. If the manager is entitled to 5%
commission after charging such commission, how much manager will get as commission?
a) 1,000 b) R2,100 c) 2,000 d) 1,050
