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
Liquid assets are same as current assets but there is one difference :
  • A
    Liquid assets do not include debtors
  • B
    Liquid assets do not include cash in hand
  • C
    Liquid assets do not include stock and prepaid expense
    Correct
  • D
    Liquid assets do not include cash at bank
2
Meaning of return outward is :
  • A
    Sales Return
  • B
    Cash Purchase
  • C
    Purchase Return
    Correct
  • D
    Cash Sales
3
According to Going Concern Concept, a business is assumed to have :
  • A
    An Indefinite life
    Correct
  • B
    A Medium Life
  • C
    A Limited Life
  • D
    A Short Life
4
Window dressing is prohibited by convention of :
  • A
    Consistency
  • B
    Full Disclosure
    Correct
  • C
    Materiality
  • D
    Conservatism
5
Profit should be considered only when realized, according to concept of :
  • A
    Realisation
    Correct
  • B
    Materiality
  • C
    Matching
  • D
    Conservatism
6
Capital and Revenue expenditure should be distinguished as per :
  • A
    None of these
  • B
    Accounting Period Concept
    Correct
  • C
    Matching Concept
  • D
    Materiality Concept
7
Non-monetary information is not recorded in books of accounts due to :
  • A
    Annual Concept
  • B
    None of these
  • C
    Business Entity Concept
  • D
    Money Measurement Concept
    Correct
8
There should be uniform accounting policies and methods from one period to another, according to :
  • A
    Matching Concept
  • B
    Consistency Concept
    Correct
  • C
    Conservatism Concept
  • D
    None of these
9
'Closing stock is valued at cost or market price whichever is less ' According to :
  • A
    Materiality
  • B
    Business Entity Concept
  • C
    Money Measurement Concept
  • D
    Conservatism or Prudence Concept
    Correct
10
'Financial statements should disclose all material information' According to :
  • A
    Matching Concept
  • B
    Consistency Concept
  • C
    Conservatism Concept
  • D
    Full Disclosure Concept
    Correct
11
What is the financial accounting period for calculation of Tax?
  • A
    None of these
  • B
    1st April to 31st March
    Correct
  • C
    1st Jan to 31st December
  • D
    1st July to 30 June
12
Assets = Capital + Liabilities, according to :
  • A
    Dual Concept
    Correct
  • B
    Realisation Concept
  • C
    Going Concern Concept
  • D
    Objective Evidence Concept
13
Only those transactions are recorded in the books of accounts which can be expressed in monetary terms. According to :
  • A
    Dual Aspect Concept
  • B
    Business Entity Concept
  • C
    Cost Concept
  • D
    Money Measurement Concept
    Correct
14
'Businessman is the creditor of the business to extent of his capital'. According to :
  • A
    Matching Concept
  • B
    Consistency Concept
  • C
    Business Entity Concept
    Correct
  • D
    Dual Aspect Concept
15
According to the Cost Concept :
  • A
    None of these
  • B
    Only material items should be recorded
  • C
    All fixed assets are recorded in the books at their cost
    Correct
  • D
    Income is treated as being earned on the date on which it is realized