ACCOUNTANCY

HOLIDAY HOMEWORK 2024-25

CLASS - 11
1. Word used for not showing the actual position in the financial statement is ______________.

2. Branch of accounting used to calculate cost of product is ______________.

3. Fixed assets are also known as ______________.

4. Main function of accounting is to maintain complete and systematic record of ______________ transactions.

5. Branch of commerce which keeps a record of monetary transactions in a set of books is called ______________.

6. The excess of revenue over expenses of an accounting year is known as __________________.

7. Amount invested in the business by the owner is known as ______________.

8. The branch of accounting which is concerned with GST and Income tax is known as ______________.

9. Excess of current assets over current liabilities in known as ______________.

10. Current assets get converted in cash in a period of ______________.

11. Branch of accounting which assists in systematic recording of business transactions is known as ______________.

12. Assets used in the business for the purpose of re-sale are called ______________.

13. For the purpose of calculating net profit or net loss at the end of the accounting year a statement is prepared
called ______________.

14. To ensure reliability the information disclosed must be ______________.

15. An event involving some value between two or more entities is known as ______________.

16. Total revenue earned from goods or services sold during accounting year is called ______________.

17. Use of common unit of measurement and common format of reporting promotes ______________.

18. Internal users are the persons who have direct interest in the business enterprise are known as ___________

and ______________.

19. Creditors and banks are the example of users of accounting and there known as ______________ users.

20. Discount given to encourage prompt payment and which reduces bad debts is called ______________.

21. Documentary evidence to support a business transaction is known as voucher, voucher prepared to deposit cash
in bank is called ______________.

22. Assets which do not have physical existence and can’t be touched, seen but can be felt only are known as
_______________.

23. Bank overdraft is an example of current liability and trade receivable is an example of ______________.

24. Qualitative characteristics of accounting include reliability, comparability, understand ability and ___________.

25. Recording, classify and summarizing are also termed as ______________.

26. The goods unsold at the end of the accounting year is called ______________.

27. The amount which is paid for increasing profit earning capacity of business is called ______________.

28. Ethical or environmental activities of the firm are related which responsibility of business ______________.
29. Monetary benefit received from sale of noncurrent assets is called ______________.

30. Amount spent on cost of goods sold during a year and no benefit received on the same leads to ______________.

31. The term purchase is used for purchase of goods only but not for purchase of ______________.

32. Amount not recovered from trade receivables on account their insolvency is known as ______________.

33. Amount paid for the purchase of goods is an example of ______________.

34. Amount of cash invested in business is called capital whereas amount withdrawn from the business for personal
use is known as ______________.

35. The assets which are used in the business for a longer period of time are called ______________.

36. Bad debts arises due to sale of goods on credit as well as ______________.

37. Amount due from Ajay was Rs. 10,000 being insolvent he paid Rs. 2500 only. Amount of bad debts of Ajay in
terms of percentage will be ______________.

38. Double entry system of accounting involves two aspects _____________and ______________.

39. Liquid assets = Current assets–Prepaid expenses and ______________.

40. Paying salary to employee is a business transaction whereas paying salary to personal maid of owner is termed as
______________.

41. Buying of machine of Rs. 10,000,00 for business is a capital expenditure whereas buying of a calculator for
business is ______________.

42. Sale of household furniture of Rs. 50,000 of proprietor for Rs. 45,000 and invested the same amount in business
will be called as ______________.

43. 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 ______________.

44. Ansari sold goods costing Rs. 2 00,000 for Rs. 2 60,000 and received cash Rs. 2,43,500Amount of cash discount
allowed will be ______________.

45. Rent outstanding is an example of current liabilities whereas computer software for Microsoft is an example
______________.

46. Machine of Rs. 6 00,000 was purchased at a commission of 10%. Total cost of machine will be Rs. ___________.

47. Anushka started business with cash Rs. 5,00,000, loan from friend. Rs. 2,00,000 and assets Rs. 7,00,000. Amount
of Internal liability of Anushka is ______________.

48. Debtors + B/R + short term investments + marketable securities are examples of ______________ Assets.

49. Profit earned during year is called income and it is expressed as ______________.

50. Proprietor borrowed long term loan from bank on collateral of assets of Rs. 1,00,000. It is an example of
______________.

Ques.2 TRUE AND FALSE

1. Book – Keeping starts where accounting ends.

2. Cost Accounting is a branch of Accounting.

3. Accounting involves only the recording of Business Transactions.

4. Assets which can be converted into cash within a year is known as Fixed Assets.
5. Those debts that are payable after a period of one year is known as Current Liabilities.

6. Costs incurred by a business for earning revenue are known as Expenses.

7. Assets accounts normally have a credit balance.

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

9. Goods remains at the end of accounting year is known as Closing Stock.

10. Accounting is a language of business.

11. GST stands for Goods & Sales Tax.

12. Final Accounts are prepared at the end of the accounting year.

13. Cash Account is a Nominal Account.

14. Management is external users of Accounting Information.

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

16. Accounting do not give the complete picture of the financial conditions of the business unit.

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

18. Accounting is a Service function.

19. Creditors are the external users of Accounting Information.

20. Accounting makes records of qualitative aspects of business.

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

22. Current Assets include Bank Loans.

23. Accountancy includes Book – Keeping as well as Accounting.

24. Tax Accounting is not a branch of Accounting.

25. Goods or Cash withdrew by owner for personal use treated as Expenditure.

26. Business Organisation involves economic events.

27. Accounting provides in formations which is useful to management for making economic decisions.

28. Trade Discount is allowed to persuade the buyer to buy more goods.

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

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

31. Drawing increases the Capital of the Owner.

32. Trade Payable includes Creditors & Bills Receivable.

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

34. Cash Discount is allowed to the customers for making prompt payment.

35. Goodwill is Tangible Assets.

36. Profit decreases the investment of the Owner.

37. Bad Debts arise from Credit Sales.

38. Account Receivables are considered as Income.

39. Complete process of Accounting is called Accounting Circle.

40. The excess of revenues of a period over its related expenses during an accounting year is called Profit.

41. Inventory is valued at cost price or realisable value, whichever is more.

42. Long – term transactions are also known as Revenue transactions.

43. Purchase of Machinery is a capital transaction.

44. Net Profit or Net Loss of a particular period is ascertained by preparing a Trading Account.

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

46. Amount received from sale of goods is example of Revenue.

47. The excess of current liabilities over current assets is known as working capital.

48. Capital Expenditure is non – recurring and irregular.

49. Resources minus Capital Equities is equal to Liabilities.

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

51. The Purchase account is used for goods that are for the purpose of resale.

52. Written Document for Credit Sale given by seller to buyer is known as Invoice.

Ques. 3 MULTIPLE CHOICE QUESTIONS

1. Qualitative characteristics of accounting information are:

(a) Reliability (b)Relevance (c) Understandable (d) All of these

2. A summarized record of relevant transactions of particulars head at one place are:

(a) Ledger (b) Journal (c) Account (d) Purchases book

3. Those assets which have physical existence and can be seen and touched are:
(a) Current assets (b) Tangible assets `(c) Intangible assets (d) None of these

4. 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

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

6. Current assets do not include:

(a) Motor car (b) Inventory (c) Bills Receivable (d) Debtors

7. Which one an example of current liabilities:

(a) Bills Receivable (b) Debtors (c) Creditors (d) None of these

8. Goodwill is the assets:

(a) Intangible assets (b) Tangible assets (c) Current assets (d) All of these

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

10. It is the cost incurred in producing goods and services:

(a) Expenses (b) Incomes (c) Profit (d) Loss
UNDERSTANDING:-

11. 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

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

13. The documentary evidence in support of a transaction is known as:

(a) Debit note (b) Credit note (c) Voucher (d) Invoice

14. A document given by the seller to the buyer for sale of goods or provision of service on credit, is known as:
(a) Invoice (b) Debit note (c) Cash memo (d) All of these

15. Any dealing between two parties or persons which must be recorded and which can be measured in terms of
money is called:
(a) Debtors (b) Transactions (c) Creditors (d) Investor

16. 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

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

18. Amount received from sale of goods is:

(a) Revenue receipts (b) Capitalize receipts (c) a and b both (d) None of these

19. A language of business is known as:

(a) Accountancy (b) Accounting (c) a and b both (d) All of these

20. Purchases refer to the purchase of:

(a) Stationery for office use (b) Goods for resale (c) Assets for the factory (d) none of these

21. Which of the following is not a fixed asset:

(a) Building (b) Land (c) Machinery (d) B/R

22. Which of the following is not a current assets:

(a) Plant (b) Debtors (c) B/R (d) Stock

23. 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

24. Which branch is used for calculating cost of product is:

(a) Financial Accounting (b) Management Accounting (c) Cost Accounting (d) All of these

25. Who is the father of Accounting:

(a) Luca Pacioli (b) Charles Babeje (c) Henry Fayol (d) F. W. Tailor

26. Business organization involves:

(a) Social event (b) Economic event (c) Welfare event (d) None of these

27. A person who owns business Alone is called:

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

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

30. Property of the business is called:

(a) Assets (b) Liabilities (c) Expenditure (d) Gain

31. Winning a court case an example of:

(a) Profit (b) Income (c) Gain (d) Revenue
32. Objective of Accounting are:
(a) Calculate profit and loss (b) Maintain records of business (c) Depict the financial position (d) All

33. Inventory valued at:

(a) Cost price (b) Market price (c) Whichever is less (d) Whichever is more

34. The person who draw a bill of exchange is known as:

(a) Drawer (b) Drawee (c) Payee (d) Endorsee

35. Goods purchased for resale are called:

(a) Sales (b) Purchases (c) Return inward (d) Return outward

36. Long term transactions are also called:

(a) Paper transaction (b) Capital transaction (c) Revenue transaction (d) Non monetary transaction

37. Which one is a capital transaction?

(a) Purchase of goods (b) Payment of wages (c) Sales of goods (d) Purchase of machinery

38. The financial information provided by an accounting system is needed by:

(a) Owners (b) Creditors (c) Management (d) All of these

39. A document prepared to authorize and describe an expenditure is termed as:

(a) Cash memo (b) Voucher (c) Bill (d) Debit

40. 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

41. Current assets minus current liabilities is equal to:

(a) Working capital (b) Profit (c) Capital (d) Loss

42. 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

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

44. Resources minus capital equities is equal to:

(a) Assets (b) Equity (c) Revenue (d) Liabilities

45. The complete process of accounting is called:

(a) Journalising (b) Posting (c) Accounting cycle (d) Business cycle
46. The modern system of recording business transactions in the books of accounts is known as:
(a) Modern system (b) Single entry system (c) American system (d) Double entry system

47. A portion of the accounts receivable which proves to be uncollectible is termed as:
(a) Bad debts (b) Doubtful debts (c) Provision for bad debts (d) All of these

48. The properties owned by a business enterprise are called:

(a) Capital (b) Liabilities (c) Assets (d) Owner’s equity

49. Accounts receivable are considered as:

(a) Current assets (b) Income (c) Deferred receipts (d) Fixed assets

50. Bad debts arise from:

(a) Credit sales (b) Cash sales (c) Personal sales d) All of these