Theory Base Of Accounting CBSE Questions & Answers

Theory Base Of Accounting

This is Accountancy Class 11 Theory Base of Accounting CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
As per dual aspect concept, every business transaction has
  • A
    Two aspects
    Correct
  • B
    One aspect
  • C
    Three aspects
  • D
    None
2
To promote world-wide uniformity in published accounts, the International Accounting Standards Committee (IASC) has been set up in June
  • A
    1973.0
    Correct
  • B
    1975
  • C
    1972
  • D
    1971
3
In our country ______has been empowered to formulate and issue accounting standards, that should be followed by all business concerns in India
  • A
    IASC
  • B
    ASB
    Correct
  • C
    IASB
  • D
    None
4
IFRS followed by Indian Accounting are based on
  • A
    Indian accounting standards
  • B
    None of these
  • C
    Fair value
    Correct
  • D
    Historical cost
5
IFRS are
  • A
    Rule based accounting standards
  • B
    Partially rule based and partially based accounting standards
  • C
    None of these
  • D
    Principle based accounting standards
    Correct
6
IASB has adopted
  • A
    All IAS and SIC
    Correct
  • B
    Some Sic
  • C
    Some IAS
  • D
    None of these
7
The Prudence of Accountants states that preference should be given for error Rs.in measuring assets and recognizing revenues in the direction of understatement rather than overstatement.
  • A
    False
  • B
    Can’t say
  • C
    Partly True
  • D
    True
    Correct
8
Which of the following is not a concept of accounting
  • A
    Revenue Realisation
  • B
    Accounting standards
    Correct
  • C
    Historical Cost
  • D
    Dual Aspect
9
Rent for the month for the month March 2012 is not paid. Under which accounting concept it should be recorded as expense for the year ended 31st March 2012
  • A
    Prudence
  • B
    Cost
  • C
    Accrual
    Correct
  • D
    Dual aspect
10
An investment company has been valuing its inventory of land at lower of market price or cots. It now wants to value its inventory at current market price which is higher than the cost. Which accounting concept will be violated
  • A
    Dual aspect
  • B
    Cost
  • C
    Accrual
  • D
    Prudence
    Correct
11
Market value of an asset is ______ and is ______ in the balance sheet as these assets are not going to be sold in near future
  • A
    Relevant, recorded
  • B
    Irrelevant, recorded
  • C
    Irrelevant, recorded
  • D
    Irrelevant, not recorded
    Correct
12
______ implies that accounting practices once selected and adopted should be applied consistently year after year
  • A
    Cost
  • B
    Going concern
  • C
    Consistency
    Correct
  • D
    Accrual
13
Which statement is false regarding conservatism principle
  • A
    provision for discount to debtors, provision for doubtful bad debts etc. based on the conservatism
  • B
    Losses should not be anticipated; however, all profits should be accounted
    Correct
  • C
    none of these
  • D
    helps the business to deal uncertainty and unforeseen conditions
14
Which is the modifying principle
  • A
    Matching
  • B
    Full Disclosure
  • C
    Materiality
    Correct
  • D
    Historical Cost
15
According to Business Entity Concept
  • A
    All of these
    Correct
  • B
    Proprietor's private expenses are treated as drawing
  • C
    Owner is treated as creditors
  • D
    Life insurance premium is treated as drawing