ACCOUNTANCY FOR CLASS 11 CHAPTER 2 THEORY BASE OF ACCOUNTING MCQS ALONG WITH ANSWERS

Free CBSE Accountancy Multiple Choice Questions for Class 11 along with answers Chapter 2: Theory Base of 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. The primary qualities that make accounting information useful for decision making are _______.

(a) Relevance and freedom from bias

(b) Reliability and comparability

(c) Comparability and consistency

(d) None of the above

Answer: (b) Reliability and comparability

2. The amount drawn by a businessman for his personal use is _______.

(a) Capital

(b) Drawing

(c) Expenditure

(d) Loss

Answer: (b) Drawing

3. During a lifetime of an entity, accounting produces financial statements in accordance with which basic accounting concept?

(a) Conservation.

(b) Matching

(c) Accounting period

(d) None of the above

Answer: (c) Accounting period

4. In India, the accounting standard board was set up in the year ______.

(a) 1972

(b) 1977

(c) 1956

(d) 1932

Answer: (b) 1977

5. A concept that a business enterprise will not be sold or liquidated in the near future is known as ________.

(a) Going concern

(b) Economic entity

(c) Monetary unit

(d) None of the above

Answer: (a) Going concern

6. Meaning of credibility of going concern is _______.

(a) Closing of business

(b) Opening of business

(c) Continuing of business

(d) None of the above

Answer: (c) Continuing of business

7. When information about two different enterprises has been prepared presented in a similar manner, the information exhibits the characteristics of ________.

(a) Verifiability

(b) Relevance

(c) Reliability

(d) None of the above

Answer: (d) None of the above

8. The basic accounting postulates are denoted by ______.

(a) Concepts

(b) Bookkeeping

(c) Accounting standards

(d) None of the above

Answer: (a) Concepts

9. Generally, the duration of an Accounting period is of _______.

(a) Six months

(b) Three months

(c) Twelve months

(d) One month

Answer: (c) Twelve months

10. The sum of Liabilities and Capital is _____.

(a) Expense

(b) Income

(c) Drawings

(d) Assets

Answer: (d) Assets

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