ACCOUNTANCY FOR CLASS 11 CHAPTER 10 FINANCIAL STATEMENTS 2, MCQS ALONG WITH ANSWERS

Free CBSE Accountancy Multiple Choice Questions for Class 11 along with answers Chapter 10: Financial Statements 2. 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. The object of non-trading concerns ______.

(a) Social service

(b) Profit earning

(c) Both of these

(d) None of the above

Answer: (a) Social service

2. Which of the following is recorded in income and expenditure accounts?

(a) Revenue items

(b) Capital items

(c) Revenue and capital items

(d) None of the above

Answer: (a) Revenue items

3. If the rent of one month is still to be paid, the adjustment entry will be _______.

(a) Debit outstanding rent account and Credit rent account

(b) Debit profit and loss account and Credit rent account

(c) Debit rent account and Credit profit and loss account

(d) Debit rent account and Credit outstanding rent account

Answer: (d) Debit rent account and Credit outstanding rent account

4. If a person fails to pay his debt, such an amount is considered as ______.

(a) Bad debts

(b) Bad debts recovered

(c) Provision for bad debt

(d) None of the above

Answer: (a) Bad debts

5. If the insurance premium paid Rs. 1,000 and prepaid insurance Rs. 300. The amount of insurance premium shown in the profit and loss account will be ______.

(a) Rs. 1,300

(b) Rs. 1,000

(c) Rs. 300

(d) Rs. 700

Answer: (d) Rs. 700

6. Which of the following is not an item of income of Non-trading concern?

(a) Entrance fees

(b) Interest

(c) Government aid

(d) Salary

Answer: (d) Salary

7. If a person fails to pay his debt, such an amount is considered as ______.

(a) Bad debts

(b) Bad debts recovered

(c) Provision for bad debt

(d) None of the above

Answer: (a) Bad debts

8. Outstanding Expenses are related to _______.

(a) Current year

(b) Next year

(c) Last year

(d) None of the above

Answer: (a) Current year

9. Such persons who earn remuneration against their services are called _______.

(a) Seller

(b) Purchaser

(c) Professional

(d) None of the above

Answer: (c) Professional

10. Which of the following is recorded in the income and expenditure account?

(a) Revenue items

(b) Capital items

(c) Revenue and capital items

(d) None of the above

Answer: (a) Revenue items

11. Receipt and payment account is a summary of ______.

(a) Income and Expenditure account

(b) Profit and Loss A/c

(c) Cashbook

(d) None of the above

Answer: (c) Cashbook

12. Prepaid expenses are shown in _____.

(a) Liability side

(b) Asset side

(c) Assets or Liability side

(d) None of the above

Answer: (b) Asset side

13. Charity of goods is ______.

(a) Expenses

(b) Loss

(c) Profit

(d) None of the above

Answer: (b) Loss

14. If the opening capital is Rs. 50,000 as of April 1, 2005, and additional capital introduced Rs. 10,000 on January 1, 2006. Interest charge on capital 10% p.a. The amount of interest on capital shown in the profit and loss account as of March 31, 2006, will be _______.

(a) Rs. 5,250

(b) Rs. 6,000

(c) Rs. 4,000

(d) Rs. 3,000

Answer: (a) Rs. 5,250

15. If the rent is received in advance Rs. 2,000. The adjustment entry will be _______.

(a) Debit profit and loss account and Credit rent account

(b) Debit rent account Credit rent received in the advance account

(c) Debit rent received in advance account and Credit rent account

(d) None of the above

Answer: (b) Debit rent account Credit rent received in advance account

We trust that the offered Accountancy MCQs for Class 11 with responses Chapter 10: Financial Statements 2 will help you. Assuming you have any questions with respect to CBSE Class 11 Accountancy, Financial Statements 2 MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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