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MCQ for Class 11 Accountancy Set-1
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1. The art of recording all business transactions in a systematic manner in a set of books is called-
Accounting
Book – keeping
Ledger
None of these.
2. The process of recording, classifying and summarizing all business transactions in order to know the financial result is called –
Book – keeping
Accounting
Journalizing
None of these.
3. Cash, goods or assets invested by the proprietor in the business for earning profit is called-
Profit
Capital
Fixed assets
None of these.
4. The person, firm or institution who does not pay the price in cash for the goods purchased or the services received is called-
Creditor
Proprietor
Debtor
None of these.
5. Book – keeping is-
An art
A science
An art and science both
None of these.
6. Generally the duration of an Accounting period is of-
6 months
3 months
12 months
1 month.
7. The sum of Liabilities and Capital is-
Expense
Income
Drawings
Assets.
8. In India, the accounting standard board was set up in the year-
1972
1977
1956
1932.
9. The basic accounting postulates are denoted by –
Concepts
Book – keeping
Accounting standards
None of these.
10. The amount drawn by businessmen for his personal use is-
Capital
Drawing
Expenditure
Loss.
11. Meaning of credibility of going concern is:
Closing of business
Opening of business
Continuing of business
None of these.
12. The Mathematical Expression defining the comparative relationship between Assets and Liabilities of any person, institution or Business concern is called-
Accounting
Accounting Equation
Book – keeping
None of these.
13. Liabilities and Assets amount to Rs. 50,000 and Rs. 7,800 respectively. The difference Amount shall represent-
Creditors
Debentures
Profit
Capital.
14. The basis of recording transactions is-
Vouchers
Profit
Order form
Quotation list.
15. As per American Belief, Accounts are of how many types-
Two
Three
Five
Four.
16. Which of the following is entered in cash – book-
Only cash transactions
Only credit transactions
Both cash and credit transactions
None of these.
17. Cash – book always show-
Debit balance
Credit balance
Debit or Credit balance
None of these.
18. The cash – book meant for recording petty expenses is called –
Simple cash – book
Petty cash – book
Triple column
None of these.
19. The entry which affects cash and bank column of a triple column cash – book is known as –
Compound entry
Contra entry
Journal entry
None of these.
20. What statement is used while closing a Drawing Account-
Balance c/d
By Trading A/c
By P & L A/c
By Capital Account.
21. The entry which is passed for bringing forward the balances of personal and Real Account as shown in the last year’s balance sheet is called –
Closing entry
Journal entry
Opening entry
None of these.
22. The balance of good’s Account is transferred to-
Profit and loss Account
Trading Account
Balance sheet
None of these.
23. Which Account is opened first in ledger book-
Personal
Real
Non – real
None of these.
24. How many columns are there in a Ledger (in one side)-
Six
Four
Five
Seven.
25. What kind of accuracy is tested by Trial balance-
Theoritical
Practical
Arithmetical
None of these.
26. How many methods are there for preparing Trial Balance –
One
Three
Four
None of these.
27. Which of the following is prepared on the basis of Trial Balance –
Journal
Ledger
Final Accounts
None of these.
28. Of the two sides of Trial balance does not tally, which Account is opened –
Suspense Account
Personal Account
Real Account
None of these.
29. The error which can be disclosed by Trial balance-
Error of omission
Error of principal
Compensatory error
None of these.
30. Errors are rectified in this book-
Ledger book
Journal proper
Trial balance
None of these.
31. Errors Committed by omitting entries in the Journal book is called –
Error of commission
Error of principle
Error of omission
None of these.
32. If the trial balance does not tally after many efforts then following Account is opened –
Purchase account
Suspense account
Sales account
None of these.
33. Errors committed due to lack of basis principle of Accounting are called –
Compensating errors
Error of principle
Single sided error
None of these.
34. Which of the following methods of depreciation is not recognized by Income Tax Law?
Straight line Method
None of these
Both, Straight Line and Diminishing Balance Methods
Diminishing Balance Method
35. Asset Disposal A/c is prepared when :
Provision for Depreciation A/c is prepared
Asset A/c is prepared
Profit & Loss A/c is prepared
Depreciation A/c is prepared
36. Which of the following is the example of Capital Reserve?
Workmen’s Compensation Fund
None of these
Premium Received on issue of shares or debentures
General Reserve
37. Which of the following is the example of Revenue Reserve?
Profit on Redemption of Debentures
Profit on Revaluation of Fixed
Investment Fluctuation Fund
Profit on Re-issue of forfeited shares
38. Dividend Equalisation Reserve is :
Specific Reserve
None of these
Secret Reserve
General Reserve
39. General Reserves are shown in :
Revaluation Account
Profit and Loss Account
None of these
Balance Sheet
40. According to Companies Act, 1956 Secret Reserves can be created by:
Only Private Company
Banking and insurance companies
Only Public Company
Companies Registered under Companies Act
41. The loss on sale of an asset is debited to:
Profit and Loss Account
Trial Balance Cr. Side
Balance Sheet
Trading Account
42. Depreciation is Charged on :
Current Assets
Fixed Tangible Assets
None of these
Both Current and Fixed Assets
43. At the end of the year, Depreciation Account is transferred to :
Balance Sheet
Trading Account
Profit & Loss Appropriation Account
Profit & Loss Account
44. Provision is created by debiting :
Profit and Loss Account
None of these
Profit and Loss Appropriation Account
Trading Account
45. The cause of Depreciation is :
Wear and tear
Obsolescence
All of these
Usage of Asset
46. Depreciation is a process of :
Allocation
Valuation
None of these
Depletion
47. Under Reducing Balance Method, depreciation to be charged :
Scrap Value
None of these
Real Value
Original value
48. The depreciation charged on an asset will be credited to :
Depreciation A/c
Asset A/c
Bank A/c
Cash A/c
49. Every fixed asset loses its value due to use or other reasons. This decline in the value of asset is known as
Amortization
Provisions
Depreciation
Devaluation
50. Following are the causes of Depreciation except
Wear and tear due to use or passage of time.
normal factors
Expiration of legal rights.
Obsolescence.
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