( Best 30+ ) MCQ Questions for Accountancy Class 11 Chapter 4 Basis of Accounting

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MCQ Questions for Accountancy Class 11 Chapter 4 Basis of Accounting MCQs

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CBSE Class 11 Accountancy Theory Base Of Accounting MCQs with answers available in Pdf for free download. The MCQ Questions for Class 11 Accountancy with answers have been prepared as per the latest syllabus, NCERT books and examination pattern suggested in Standard 11 by CBSE, NCERT and KVS. Multiple Choice Questions are an important part of exams for Grade 11 Accountancy and if practiced properly can help you to get higher marks. Refer to more Chapter-wise MCQs for NCERT Class 11 Accountancy and also download more latest study material for all subjects
Chapter 4 Basis of Accounting MCQs

Question : Under the Cash Basis of Accounting, expenses are recorded

(a) on payment.

(b) on being incurred.

(c) either (a) or (b).

(d) None of these.

 

Question : Under the Accrual Basis of Accounting, expenses are recorded

(a) on payment.

(b) on being incurred. 

(c) either (a) or (b)

(d) None of these.

 

Question : Accrual Basis of Accounting

(a) does not give a true and fair view of profit and financial position.

(b) gives a true and fair view of profit and financial position. 

(c) may or may not give a true and fair view of profit and financial position.

(d) None of the above.

Question : Accrual Basis of Accounting recognises

(a) Outstanding and Prepaid Expenses.

(b) Accrued Incomes and Incomes Received in Advance.

(c) Both (a) and (b).

(d) None of the above.

 

Question : Under Accrual Basis of Accounting

(a) both Cash and Credit transactions are recorded. 

(b) only cash transactions are recorded.

(c) only credit transactions are recorded.

(d) None of the above.

1. MCQ Questions for Accountancy Class 11 Chapter 1 Introduction to Accounting

2. MCQ Questions for Accountancy Class 11 Chapter 2 Basic Accounting Terms

3. MCQ Questions for Accountancy Class 11 Chapter 3 Theory Based of Accounting, Accounting Standards and Indian Accounting Standards (Ind-AS)

Question : What are the two bases of accounting?

(a) Cash basis

(b) Accrual basis

(c) Both (a) and (b)

(d) None of the above

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 :  Overheads

 

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 :  Summarising

 

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

  • a) Chronological
  • b) Financial
  • c) Proper
  • d) Monetary

Answer :  Chronological

 

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 :  Book Keeping is a part of Accounting.

 

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 :  Fair value

 

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 :  Principles based accounting standards

1. MCQ Questions for Accountancy Class 11 Chapter 1 Introduction to Accounting

2. MCQ Questions for Accountancy Class 11 Chapter 2 Basic Accounting Terms

3. MCQ Questions for Accountancy Class 11 Chapter 3 Theory Based of Accounting, Accounting Standards and Indian Accounting Standards (Ind-AS)

Question :  IAS adopted by IASB and still in force are:

  • a) 29
  • b) 41
  • c) 9
  • d) 10

Answer :  29

 

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 :  All IAS and SIC (Standing Interpretation Boar

 

Question :  A liability arises because of:

  • a) Credit transaction
  • b) Cash transaction
  • c) None of the options
  • d) Cash and credit transaction

Answer :  Credit transaction

 

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 :  Income = Revenue Expenses.

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 :  Assistance to management.

 

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 :  Accounting leads to window dressing

 

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 :  Purchase an LCD for owners personal use.

1. MCQ Questions for Accountancy Class 11 Chapter 1 Introduction to Accounting

2. MCQ Questions for Accountancy Class 11 Chapter 2 Basic Accounting Terms

3. MCQ Questions for Accountancy Class 11 Chapter 3 Theory Based of Accounting, Accounting Standards and Indian Accounting Standards (Ind-AS)

Question :  Return Inward is the term used for:

  • a) Sales Return
  • b) Purchase Return
  • c) Credit purchase
  • d) Credit Sales

Answer :  Sales Return

 

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 :  Goods, Assets.

 

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 :  Debit balance of Profit &loss A/c

 

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 :  Banks & financial institution

 

Question : Which one of the following is NOT the qualitative characteristic of accounting?

  • a) Completeness
  • b) Reliability
  • c) Understandability
  • d) Relevance

Answer :  Completeness

 

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 :  Book Keeping

 

Question : Reliability of accounting information depends upon:

  • a) Verifiability
  • b) Neutrality
  • c) Understandability
  • d) Comparability

Answer :  Verifiability

 

Question : The last step in the process of accounting is:

  • a) Communicating the results to users
  • b) Classifying
  • c) Analysis
  • d) Interpretation

Answer :  Communicating the results to users

1. MCQ Questions for Accountancy Class 11 Chapter 1 Introduction to Accounting

2. MCQ Questions for Accountancy Class 11 Chapter 2 Basic Accounting Terms

3. MCQ Questions for Accountancy Class 11 Chapter 3 Theory Based of Accounting, Accounting Standards and Indian Accounting Standards (Ind-AS)

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