Important Questions for Chapter 1 Introduction to Accounting

Important Questions with Answers for CBSE Class 11 Accountancy Chapter 1 Introduction to Accounting which is outlined by expert Accountancy teachers from the latest version of CBSE (NCERT) books.

CBSE Class 11 Accountancy Chapter -1 Important Questions

Question 1

Define Accounting.

Answer: According to the American Institute of Certified Public Accountants, Accounting is, ‘It is an art of recording, classifying and summarising in a significant manner and in terms of money, transactions and events, which are, in part at least, of a financial character, and interpreting the results thereof.’

Question 2

Mention 3 functions of Accounting.

Answer: Functions of accounting are,

  • Maintaining complete and systematic records
  • Trusteeship
  • Compliance of legal needs

Question 3

Define Book-keeping.

Answer: According to J.R. Batliboi, bookkeeping is, ‘Book-keeping is an art of recording business dealing in a set of books.’

Question 4

Mention 2 Differences between accounting and accountancy.

Answer:

Accounting Accountancy
Accounting is an art of recording, classifying and summarising in a significant manner and in terms of money, transactions and events, which are, in part at least, of a financial character, and interpreting the results thereof Accountancy is a body of knowledge prescribing definite rules to be observed while recording, classifying and summarising of transactions.
It relies on Book-keeping. It relies on both Book-keeping and Accounting.

Question 5

Mention the types of accounting.

Answer: There are 5 types of accounting. Namely,

  • Financial Accounting
  • Cost Accounting
  • Management Accounting
  • Tax Accounting
  • Social responsibility Accounting

Question 6

Who are the users of Accounting?

Answer: The users may be categorised into 2 groups. Namely,

  • Internal users
  • External users

Question 7

What are the 3 advantages of accounting?

Answer: Advantages of accounting are,

  • Helpful in business
  • Helpful in decision making
  • Helpful in controlling

Question 8

What are the 5 roles of accounting?

Answer: Roles of accounting are,

  • Role of language
  • Role of the historical record
  • Role of the service provider
  • Role of information system
  • Role of determining the net profit

Question 9

What is the end product of financial accounting?

Answer: End product of financial accounting is ‘Financial Statements’.

Question 10

Mention 2 qualitative characteristics of accounting information.

Answer:

  • Reliability
  • Comparability

Question 11

External users of accounting information are not:

  • Lenders
  • Officers
  • Employees
  • Public

Answer: Officers

Question 12

Which of the following is not a sub-field of accounting?

  • Financial Accounting
  • Cost Accounting
  • Management Accounting
  • Book-keeping

Answer: Book-keeping

Question 13

What is the traditional function of accounting?

Answer: Recording of financial transactions.

Question 14

Book-keeping begins where accounting ends. True or False?

Answer: False

Question 15

Accounting is the language of business. True or False?

Answer: True

Stay tuned to BYJU’S for more CBSE Class 11 Accountancy important questions, question papers, sample papers, syllabus and Commerce notifications.

10 Comments

  1. Very helpful sir

  2. REALLY SO MUCH HELPFUL FOR EXAMS

  3. Helpful and useful

  4. It’s really very helpful 👍

  5. Thank you so much. It is really very helpful for us.

  6. This information is really very useful

  7. Its really very helpful for me !! Thank u 😊 sir

  8. Very crisp and clear answers which are helpful for easy understanding

  9. GURJOT KAUR GILL

    It is very helpful

Leave a Comment

Your email address will not be published. Required fields are marked *