Financial Statements Of Sole Proprietorship CBSE Questions & Answers

Financial Statements Of Sole Proprietorship

This is Accountancy Class 11 Financial Statements of Sole Proprietorship CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Calculation of Cost of goods sold
  • A
    Cost of Goods Sold = Net Sales - Gross Profit
    Correct
  • B
    Both
  • C
    None
  • D
    Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses - Closing Stock
2
Which of the following is another of EBIT (earning before interest and taxes)?
  • A
    Operating profit
    Correct
  • B
    None
  • C
    Gross Profit
  • D
    Net Profit
3
Calculation of Operating profit
  • A
    Operating Profit = Gross Profit – (Factory Admn. Expenses+selling and distribution exp.)
  • B
    Operating Profit = Gross Profit – (Office Admn. Expenses+direct exp.)
  • C
    Operating Profit = Gross Profit – (Office Admn. Expenses+selling and distribution exp.)
    Correct
  • D
    Operating Profit = Gross Profit – (Office Admn. Expenses+wages exp.)
4
_____ is the arrangement of various assets and liabilities in a particular order
  • A
    All of these
  • B
    Grouping
  • C
    Marshalling
    Correct
  • D
    Balancing
5
These are expenses which have been paid in current year and benefit of it will be available in next accounting year
  • A
    Both
  • B
    Outstanding Expenses
  • C
    Prepaid expenses
    Correct
  • D
    None
6
Drawings account is a:
  • A
    Company drawing account
  • B
    Real Account
  • C
    Nominal Account
  • D
    Personal Account
    Correct
7
Goods destroyed by fire should be credited to:
  • A
    Sales account
  • B
    Insurance account
  • C
    Purchases account
    Correct
  • D
    Loss of goods by fire account
8
Revenue expenditure is intended to benefit _________.
  • A
    Current period
    Correct
  • B
    Past period
  • C
    Future period
  • D
    None of these
9
Any expenditure incurred in order to reduce the operating expenses is ________.
  • A
    Capital expenditure
    Correct
  • B
    Promotional expenditure
  • C
    Revenue expenditure
  • D
    Deferred revenue expenditure
10
Wages paid for erection of machinery are debited to __________.
  • A
    Wages account
  • B
    Profit and loss account
  • C
    Machinery account
    Correct
  • D
    Deferred wages account
11
Preliminary expenses are
  • A
    Revenue receipt.
  • B
    Deferred capital receipt.
  • C
    Deferred revenue receipt
  • D
    Fictitious asset
    Correct
12
Amount paid for acquiring goodwill is __________.
  • A
    Capital expenditure
    Correct
  • B
    Deferred revenue expenditure
  • C
    Deferred capital expenditure.
  • D
    Revenue expenditure
13
The main purpose of this _______ accounting is to ascertain profit or loss during a specific period, to show financial position of the business.
  • A
    Cost accounting
  • B
    Management account
  • C
    Human resource accounting.
  • D
    Financial accounting
    Correct
14
Which of the following is false regarding capital expenditure
  • A
    Capital expenditure is recorded in balance sheet.
  • B
    When expenditure incurred for increasing the earning capacity of the business.
  • C
    When an amount is incurred in non-recurring in nature.
  • D
    Capital expenditure gives benefit over a short period
    Correct
15
Which of the following are an example of Revenue Expenditure (a) Preliminary expenses for floating a company (b) Renewal expenses/fee of patent. (c) Depreciation on fixed assets. (d) Repair of machinery normal or due to negligence of operator (e) Expenses for obtaining a license. Options are as follows
  • A
    a,b,c,d,
  • B
    a,b,c,d,e,
  • C
    c,d,e
  • D
    b,c,d
    Correct