Important Questions for Chapter 9 Financial Statements 1

Important Questions with Answers for CBSE Class 11 Accountancy Chapter 9 Financial Statements 1which is outlined by expert Accountancy teachers from the latest version of CBSE (NCERT) books.

CBSE Class 11 Accountancy Chapter -9 Important Questions

Question 1

Define financial statement?

Answer:

Financial statement is a statement which presents financial profit data and financial status of a company.

Question 2

Which are the statement that is included in the financial statement?

Answer:

The two statements that are included in the financial statements are:

  • Balance Sheet
  • Income Statement (Trading and Profit and Loss A/c)

Also Check: Important Questions Chapter 10 Financial Statements -2

Question 3

What is a trading account?

Answer:

A trading account is a financial statement that shows the result of the purchase and selling of goods and services of an accounting year.

Question 4

What do you mean by gross profit?

Answer:

Gross profit is the surplus of a selling price of a product over the cost of goods sold.

Question 5

State the formula to calculate operating profit from net profit.

Answer:

Operating Profit = Net Profit – Non-Operating Income + Non-Operating Expenses

Question 6

State the formula to calculate the cost of goods sold.

Answer:

Cost of goods sold = Sales – Gross Profit

Or

Cost of goods sold (COGS) = Opening Stock + Purchases + Direct Expenses – Closing Stock

Question 7

Define Balance Sheet.

Answer:

A Balance Sheet is a statement which shows the liabilities, assets and shareholder’s equity of the enterprise. This statement comprises of 2 major groups in which it is categorized, namely, assets, which is classified into Non – Current Assets and Current assets. Current Assets are such assets which are easily transformed into cash. On the other hand, the Non – Current Assets are such types of assets with the assistance of which the enterprise operates the enterprise.

Question 8

Give two characteristics of the balance sheet.

Answer: The two characteristics of the balance sheet are.

  • Determine the financial position of the enterprise on a specific date
  • The total of two sides of the balance sheet i.e. assets and liabilities should tally with each other, if not so it indicates any possible errors in accounting.

Question 9

Define Net profit

Answer:

Net profit refers to the surplus of all the revenues overall expenses and losses of a company.

Question 10

Goodwill is a tangible asset. True or False?

Answer:

False

Question 11

The current asset does not include closing stock. True or False?

Answer:

False

Question 12

A balance sheet is arranged in a particular date and not for a particular accounting period. True or False?

Answer:

True

Question 13

Goodwill is:

(a) Current Asset

(b) Tangible Asset

(c) Intangible Asset

(d) Fictitious Asset

Answer:

(c) Intangible Asset

Question 14

Balance of petty cash is regarded as:

(a) Expenses

(b) Income

(c) Liability

(d) Asset

Answer:

(d) Asset

Question 15

The purpose of preparing a final account is to determine:

(a) Profit and Loss

(b) Capital

(c) The value of Assets

(d) Profit and Loss and Financial position

Answer:

(d) Profit and Loss and Financial position

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

Important Topics on Financial Statements:

Comments

Leave a Comment

Your Mobile number and Email id will not be published.

*

*