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
During the life time of an entity, accountants produce financial statements at arbitrary points in time in accordance with which basic accounting principles?
  • A
    Cost benefit
  • B
    Periodicity
    Correct
  • C
    Conservatism
  • D
    Matching
2
The accounting principle that conforms to the tendency of accountants to resolve uncertainty and doubt in favor of understanding assets and revenues and overstating liabilities and expenses is known as
  • A
    Consistency
  • B
    Conservatism
    Correct
  • C
    Materiality
  • D
    Industry practice
3
Revenue will be recognize only when it is earned as per the ______ concept
  • A
    Revenue recognition
    Correct
  • B
    Industry practice
  • C
    Materiality
  • D
    Consistency
4
The assumption that a business enterprise will not be sold or liquidated in the near future is known as
  • A
    Going concern
    Correct
  • B
    Consistency
  • C
    Industry practice
  • D
    Materiality
5
Match the following options are
Question 5 figure 1
  • A
    a(ii), b(iii), c(i)
  • B
    a(i), b(ii), c(iii)
  • C
    a(ii), b(i), c(iii)
    Correct
  • D
    a(i), b(ii), c(iii)
6
The business entities follow matching concept mainly to ascertain
  • A
    The changes in the purchasing power of the money
  • B
    None of these
  • C
    Both
  • D
    True profit or loss during an accounting period
    Correct
7
Which of the following statement is false regarding the matching concept
  • A
    None of these
    Correct
  • B
    Reveal the true efficiency of the business and its activities in the concerned accounting period
  • C
    To ascertain the true profit or loss during an accounting period
  • D
    States that all expenses incurred during the year, whether paid or not, and all revenues earned during the year
8
Depreciation method is not changed by a firm since last 5 years is an example of ___
  • A
    Materiality
  • B
    Consistency Assumption
    Correct
  • C
    Industry practice
  • D
    Revenue recognition
9
Accounting standards are generally referred to as the essence of financial accounting
  • A
    Help in removing ambiguities and
  • B
    All of these
    Correct
  • C
    Help in removing inconsistencies
  • D
    Mitigate inconsistency and incomparability and to bring uniformity in preparation of the financial statements
10
Vinod sold goods on credit in February and received payment on 31st March. In such a case Revenue is considered to be recognized in the month of
  • A
    1st march
  • B
    31st March
  • C
    Revenue not recognized at all
  • D
    February
    Correct
11
It is necessary to assume Going Concern Concept as it
  • A
    Helps to bifurcate capital expenditure
  • B
    Both
    Correct
  • C
    Helps to bifurcate revenue expenditure
  • D
    None of these
12
The following treatment of expenses and revenue are done due to matching principle except
  • A
    Accounting of closing stock
  • B
    Depreciation charged on fixed assets
  • C
    Ascertainment of prepaid expenses
  • D
    Provision for doubtful debt
    Correct
13
Following are the objectives of accounting standards except
  • A
    To improves reliability
  • B
    To prevent fraud and manipulations
  • C
    To ascertain cash transactions
    Correct
  • D
    To help auditoRs.
14
Match the following options are
Question 14 figure 1
  • A
    a(i), b(iii), c(ii)
  • B
    a(ii), b(i), c(iii)
  • C
    a(iii), b(i), c(ii)
    Correct
  • D
    a(iii), b(ii), c(i)
15
Going concern assumption tell us the life of the business is
  • A
    None
  • B
    Very long
    Correct
  • C
    Short
  • D
    Very short