ACCOUNTANCY FOR CLASS 11 CHAPTER 1 INTRODUCTION TO ACCOUNTING MCQS ALONG WITH ANSWERS

Free CBSE Accountancy Multiple Choice Questions for Class 11 along with answers Chapter 1: Introduction to Accounting. Accountancy MCQs for Class 11 chapter-wise with answers are prepared based on the current exam pattern. Students can tackle MCQs with answers to realise their spadework level.

1. Bookkeeping is ______.

(a) An art

(b) A science

(c) Both an art as well as science

(d) None of these

Answer: (c) Both an art as well as science

2. ___________ is the last step of accounting as a process of information.

(a) Recording of data in the books of accounts

(b) Preparations of summaries in the form of financial statement

(c) Communication of information

(d) Analysis and interpretation of information

Answer: (c) Communication of information

3. The person, firm, or institution who does not pay the price in cash for the goods purchased or the services received is called ______.

(a) Creditor

(b) Proprietor

(c) Debtor

(d) None of these

Answer: (c) Debtor

4. Use of a common unit of measurement and common format of reporting promotes _____.

(a) Comparability

(b) Understandability

(c) Relevance

(d) Reliability

Answer: (a) Comparability

5. Cash, goods, or assets invested by the proprietor in the business for earning profit is called ______.

(a) Profit

(b) Capital

(c) Fixed assets

(d) None of these

Answer: (b) Capital

6. Which qualitative characteristics of accounting information are reflected when accounting information is clearly presented?

(a) Comparability

(b) Understandability

(c) Relevance

(d) Reliability

Answer: (b) Understandability

7. The process of recording, classifying, and summarising all business transactions in order to know the financial result is called ______.

(a) Bookkeeping

(b) Accounting

(c) Journalising

(d) None of these

Answer: (b) Accounting

8. Which of the following is not a business transaction?

(a) Bought furniture of Rs. 10,000 for business

(b) Paid for salaries of employees Rs. 5,000

(c) Paid son’s fees from her personal bank account Rs. 20,000

(d) Paid son’s fees from the business Rs. 2,000

Answer: (c) Paid son’s fees from her personal bank account Rs. 20,000

9. The art of recording all business transactions in a systematic manner in a set of books is called _____.

(a) Accounting

(b) Bookkeeping

(c) Ledger

(d) None of these

Answer: (b) Bookkeeping

10. XYZ wants to buy a building for her new business today. Which of the following is the relevant data for her decision?

(a) Similar business acquired the required building in 2000 for Rs. 10,00,000

(b) Building cost details of 2003

(c) Building cost details of 1998

(d) Similar building cost in August 2005 for Rs. 25,00,000.

Answer: (a) Similar business acquired the required building in 2000 for Rs. 10,00,000

We trust that the offered Accountancy MCQs for Class 11 with responses Chapter 1: Introduction to Accounting will help you. Assuming you have any questions with respect to CBSE Class 11 Accountancy, Introduction to Accounting MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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