Introduction To Accounting CBSE Questions & Answers

Introduction To Accounting

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

Questions & Answers

1
Sale is also known as _________
  • A
    Revenue from operations
    Correct
  • B
    Income
  • C
    Cost of goods sold
  • D
    Profit
2
______users are the groups outside the business entity who uses the information to make decisions about the business entity
  • A
    Both
  • B
    Internal
  • C
    None of these
  • D
    External
    Correct
3
Which of the following is a limitation of accounting?
  • A
    Replacing Memory
  • B
    Evidence in court
  • C
    Window Dressing
    Correct
  • D
    Facilitates loan
4
Following information is related to Trade discount except
  • A
    Persuade the buyer to buy more goods
  • B
    Not recorded in the books
  • C
    encourage the debtors to pay the dues promptly
    Correct
  • D
    Offered at an agreed percentage
5
A company prepares statement of Profit and Loss in the form prescribed in the companies act
  • A
    1945
  • B
    1932
  • C
    1950
  • D
    1956.0
    Correct
6
A liability is a current liability if it satisfies
  • A
    It is expected to be settled in the company’s normal operating cycle
  • B
    It is held primarily for the purpose of being traded
  • C
    It is due to settled within 12 months after reporting date
  • D
    All of these
    Correct
7
The time between the acquisition of an asset for processing and its conversion into cash and cash equivalent is called
  • A
    Operating cycle
    Correct
  • B
    None of these
  • C
    Time gap
  • D
    Production cycle
8
Which one of the following is not a fictitious asset?
  • A
    Goodwill
    Correct
  • B
    Loss on issue of debentures
  • C
    Discount on issue of shares
  • D
    Deferred revenue expenditure
9
The expense that has been incurred but has not been paid are called
  • A
    Prepaid expenses
  • B
    Loss
  • C
    Revenue
  • D
    Outstanding expenses
    Correct
10
Debtors and Bills Receivable are shown as _________
  • A
    Trade Payables
  • B
    Trade Receivables
    Correct
  • C
    Cheques in hand
  • D
    None of these
11
The person who makes the investment and bears all the risks connected with the business is called
  • A
    Proprietor
    Correct
  • B
    Creditor
  • C
    Debtor
  • D
    Debenture holder
12
Which one of the following is not a current liability?
  • A
    Creditors
  • B
    Debentures
    Correct
  • C
    Bill payables
  • D
    Short term loan
13
Expenditure on purchase of machinery is a
  • A
    Revenue expenditure
  • B
    Capital expenditure
    Correct
  • C
    Deferred revenue expenditure
  • D
    None of these
14
Amount paid in advance for a particulars expenses is known as_____
  • A
    Both
  • B
    None
  • C
    Outstanding expense
  • D
    Prepaid expense
    Correct
15
Which of the following statement is not an objective of accounting
  • A
    To provide information on about the enterprise’s assets, liabilities and capital
  • B
    To provide information on about the personal assets, liabilities and capital of the owner
    Correct
  • C
    To maintain records of business
  • D
    To provide information on the performance of the enterprise