Class 11 Accountancy Chapter 1 Introduction to Accounting MCQ Question with Answers

Introduction to Accounting Class 11 MCQ is one of the best strategies to prepare for the CBSE Class 11 Board exam. If you want to complete a grasp concept or work on one’s score, there is no method except constant practice. Students can improve their speed and accuracy by doing more MCQs on Introduction to Accounting Class 11, which will help them all through their board tests.

Introduction to Accounting Class 11 Accountancy MCQs Questions with Answers

Class 11 Accountancy MCQ with answers are given here to Chapter 1 Introduction to Accounting. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 11 Accountancy syllabus. By Solving these Class 11 MCQs, you will be able to analyze all of the concepts quickly in the chapter and get ready for the Class 11 Annual exam.

Learn Class 11 Introduction to Accounting MCQs with answers pdf free download according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE Class 11 Accountancy Introduction to Accounting MCQ with answers given below

Question 1. It is the cost incurred in producing goods and services:
(a) Expenses
(b) Incomes
(c) Profit
(d) Loss

Question 2. Which one is a capital transaction?
(a) Purchase of goods
(b) Payment of wages
(c) Sales of goods
(d) Purchase of machinery

Question 3. The financial information provided by an accounting system is needed by:
(a) Owners
(b) Creditors
(c) Management
(d) All of these

Question 4. X is a part of inventory of a firm. X needs further processing for converting into finished products i.e X consists of partly finished goods or semi-finished goods. Identify X.
(a) Inventory of raw material
(b) Inventory of work-in-progress
(c) Inventory of finished goods
(d) Inventory of stock-in-trade

Question 5. The person who still owes some amount to the business are termed as:
(a) Creditors
(b) Bills Payable
(c) Debtors
(d) Bills Receivable

Question 6. Resources minus capital equities is equal to:
(a) Assets
(b) Equity
(c) Revenue
(d) Liabilities

Question 7. Which is received at the time of making the payment is known as:
(a) Trade discount
(b) Rebate
(c) Cash discount
(d) None of these

Question 8. A document prepared to authorize and describe an expenditure is termed as:
(a) Cash memo
(b) Voucher
(c) Bill
(d) Debit

Question 9. A percentage reduction from the list price of merchandise allowed to retailers by whole seller is called:
(a) Commission
(b) Cash discount
(c) Trade discount
(d) Allowance 

Question 10. Stores is one of the accounting terms used to describe certain kind of materials in the production process. Which of the followng is an example of stores?
(a) Lubricants
(b) Spare parts of machinery
(c) Packingmaterials
(d) All of the above

Question 11. What was the capital initially invested?
(a) ₹ 10,000
(b) ₹ 1,00,000
(c) ₹ 1,10,000
(d) Can’t be determined

Question 12. Which type of liability is discussed inthe passage?
(a) Non-current
(b) Current
(c) Both (a) and (b)
(d) Can’t be determined

Question 13. Bills ……… is an accounting term for bills of exchange drawn on ……… received by way of endorsement from them.
(a) payable, debtors
(b) receivable, creditors
(c) payable, creditors
(d) receivable, debtors

Question 14. Discounts are recorded in books of accounts.
(a) True
(b) False
(c) Partially true
(d) Can’t say

Question 15. Which advantage of accounting is being talked by Shetty in last part of first para?
(a) Provides information regarding profit and loss
(b) Provides completes and systematic record
(c) Enables comparative study
(d) Evidence in legal matters

Question 16. The passage involves capital receipts (apart from initial capital invested).
(a) True
(b) False
(c) Partially true
(d) Can’t say

Question 17. Which type of discount is being discussed in the last part of passage?
(a) Trade discount
(b) Cash discount
(c) Both (a) and (b)
(d) Can’t be determined

Question 18. Which asset is discussed in the line, “The quality of the company’s product was very high and therefore, it could develop a reputation for itself in the market and business was flourishing”?
(a) Tangible
(b) Intangible
(c) Current
(d) Both (a) and (c)

Question 19. Which branch of accounting is liked by Sen?
(a) Financial accounting
(b) Cost accounting
(c) Management accounting
(d) Tax accounting

Question 20. Shetty talked about which type of users of accounting?
(a) Internal users
(b) External users
(c) Both (a) and (b)
(d) None of these

Question 21. When purchased goods are returned to the suppliers, these returns are termed as ……… .
(a) Return inwards
(b) Inward returns
(c) Return outwards
(d) Outward returns

Question 22. Goodwill is the assets:
(a) Intangible assets
(b) Tangible assets
(c) Current assets
(d) All of these 

Question 23. Amount or kinds which the proprietor has invested in a business is known as:
(a) Investment
(b) Capital
(c) Assets
(d) Liabilities 

Question 24. In the context of business, profit and gain are the same thing.
(a) True
(b) False
(c) Partially false
(d) None of the above

Question 25. Which of the following defines loss in the correct manner? 
(i) Result of the business for a period when total expenses exceed the total revenues.
(ii) Loss due to fire, theft, accident against which the firm receives no benefit.
(a) Only (i)
(b) Only (ii)
(c) Both (i) and (ii)
(d) Neither (i) nor (ii)

Question 26. Current assets do not include:
(a) Motor car
(b) Inventory
(c) Bills Receivable
(d) Debtors

Question 27. Which one an example of current liabilities:
(a) Bills Receivable
(b) Debtors
(c) Creditors
(d) None of these

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Question 28. The excess of current assets over the current liabilities is called:
(a) Working capital
(b) Net current assets
(c) a and b both
(d) None of these

Question 29. The goods available with the business for sale on a particular date is known as:
(a) Stock
(b) Creditors
(c) Debtors
(d) None of these

Question 30. The excess of expenses of a period over its related revenues is termed as:
(a) Profit
(b) Loss
(c) Gain
(d) Expenses

Question 31. Purchases refer to the purchase of:
(a) Stationery for office use
(b) Goods for resale
(c) Assets for the factory
(d) none of these

Question 32. Inventory valued at:
(a) Cost price
(b) Market price
(c) Whichever is less
(d) Whichever is more

Question 33. Current liabilities are liabilities that are payable with in:
(a) 2 years
(b) 1 year
(3) years
(d) 4 years

Question 34. A language of business is known as:
(a) Accountancy
(b) Accounting
(c) a and b both
(d) All of these

Question 35. Which of the following is not a fixed assets:
(a) Building
(b) Land
(c) Machinery
(d) B/R

Question 36. Which of the following is not a current assets:
(a) Plant
(b) Debtors
(c) B/R
(d) Stock

Question 37. The person who draw a bill of exchange is known as:
(a) Drawer
(b) Drawee
(c) Payee
(d) Endorsee

Question 38. Goods purchased for resale are called:
(a) Sales
(b) Purchases
(c) Return inward
(d) Return outward

Question 39. Who is the father of Accounting:
(a) Luca Pacioli
(b) Charles Babeje
(c) Henry Fayol
(d) F. W. Tailor

Question 40. Current assets minus current liabilities is equal to:
(a) Working capital
(b) Profit
(c) Capital
(d) Loss

Question 42. The amount of cash or goods which is withdrawal by proprietor from business for its private uses is called:
(a) Capital
(b) Expenses
(c) Drawings
(d) Expenditure

Question 43. Which branch is used for calculating cost of product is:
(a) Financial Accounting
(b) Management Accounting
(c) Cost Accounting
(d) All of these

Question 44. Business organization involves:
(a) Social event
(b) Economic event
(c) Welfare event
(d) None of these

Question 45. A person who owns business Alone is called:
(a) Investor
(b) Vendor
(c) Proprietor
(d) Buyer

Question 46. Recording business transactions in a set of books is known as:
(a) Book keeping
(b) Ledger
(c) Accountancy
(d) All of these

Question 47. Double entry system of accounting means:
(a) Entry in two sets of books
(b) Entry in two dates
(c) Entry for two aspects of the transaction
(d) Entry for one aspects of the transaction

Question 48. The activities of selecting, processing and reporting the information can be described as:
(a) Book-keeping
(b) Accounting
(c) Auditing
(d) Casting

Question 49. Objective of Accounting are:
(a) Calculate profit and loss
(b) Maintain records of business
(c) Depict the financial position
(d) All of these 

Question 50. Long term transactions are also called:
(a) Paper transaction
(b) Capital transaction
(c) Revenue transaction
(d) Non monetary transaction

Question 51. The goods unsold at the end of the accounting year are called:
(a) Opening stock
(b) Goods
(c) Closing stock
(d) All of these

Question 52. Property of the business is called:
(a) Assets
(b) Liabilities
(c) Expenditure
(d) Gain

Question 53. Winning a court case an example of:
(a) Profit
(b) Income
(c) Gain
(d) Revenue

 Question 54. The mordern system of recording business transactions in the books of accounts is known as:
(a) Mordern system
(b) Single entry system
(c) American system
(d) Double entry system

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