New ! Accountancy MCQ Practise Tests

All Chapter 1 Marks

11th Standard

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Accountancy

Time : 01:30:00 Hrs
Total Marks : 56
    Answer All The Following Questions:
    56 x 1 = 56
  1. The root of financial accounting system is _________

    (a)

    Social accounting

    (b)

    Stewardship accounting

    (c)

    Management accounting

    (d)

    Responsibility accounting

  2. Who is considered to be the internal user of the financial information

    (a)

    Creditor

    (b)

    Employee

    (c)

    Customer

    (d)

    Government

  3. Indirect expenses appear in _______

    (a)

    Trading account

    (b)

    Profit & loss account

    (c)

    debts account

  4. __________ refers to choosing a desirable course of action from alternative course of actions.

    (a)

    Control

    (b)

    Forecasting 

    (c)

    Decision Making 

    (d)

    None of the above

  5. The business is liable to the proprietor of the business in respect of capital introduced by the person according to

    (a)

    Money measurement concept

    (b)

    Cost concept

    (c)

    Business entity concept

    (d)

    Dual aspect concept

  6. The rule of stock valuation 'cost price or realisable value' whichever is lower is based on the accounting principle of :

    (a)

    Materiality

    (b)

    Money measurement

    (c)

    Conservatism

    (d)

    Accrual

  7. __________ concept helps in keeping business affairs free from the influence of personal affairs of the owner.

    (a)

    Business entity

    (b)

    Money measurement

    (c)

    Cost

    (d)

    Dual aspect

  8. Evaluating the performance of different periods is possible in _______

    (a)

    Periodicity concept

    (b)

    Dnal aspect

    (c)

    Accrual concept

  9. Real account deals with ______

    (a)

    Individual persons

    (b)

    Expenses and losses

    (c)

    Assets

    (d)

    Incomes and gains

  10. Withdrawal of cash from business by the proprietor should be credited to________

    (a)

    Drawings A/c

    (b)

    Cash A/c

    (c)

    Capital A/c

    (d)

    Purchases A/c

  11. ________ is prepared in three copies.

    (a)

    Debit Note

    (b)

    Credit Note

    (c)

    Receipts

    (d)

    Invoice

  12. Which of the following is correct

    (a)

    Capital = Assets + Liabilities

    (b)

    Capital = Assets - Liabilities

    (c)

    Assets = Liabilities - Capital

    (d)

    None

  13. The process of transferring the debit and credit items from journal to ledger accounts is called _____________..

    (a)

    Casting

    (b)

    Posting

    (c)

    Journalising

    (d)

    Balancing

  14. If the total of the debit side of an account exceeds the total of its credit side, it means

    (a)

    Credit Balance

    (b)

    Debit Balance

    (c)

    Nil Balance

    (d)

    Debit and Credit Balance

  15. Entry in which more than one transactions are recorded is called _______________

    (a)

    compound entry

    (b)

    single entry

    (c)

    double entry

    (d)

    journal entry

  16. Balances in the Nominal accounts are

    (a)

    Carried forward to next accounting year

    (b)

    Carried forward to Trading and Profit and Loss A/c

    (c)

    Carried forward to Balance Sheet

    (d)

    None of the above

  17. While preparing the trial balance, the accountant finds that the total of the credit column is short by Rs.200. This difference will be

    (a)

    Debited to suspense account

    (b)

    Credited to suspense account

    (c)

    Adjusted to any of the debit balance

    (d)

    Adjusted to any of the credit balance

  18. Which of the following method(s) can be used for preparing trial balance?

    (a)

    Balance method

    (b)

    Total method

    (c)

    Total and Balance method

    (d)

    a, b and c

  19. The preparation of trial balance is for___________

    (a)

    Locating errors of commission

    (b)

    Locating errors of principle

    (c)

    Locating clerical errors

    (d)

    All of the above

  20. While Preparing the trial balance, the accountant finds that the total of the debit column is short by Rs. 1,000. This difference will be

    (a)

    Debited to suspense account

    (b)

    created to suspense account

    (c)

    Adjusted to any of the debit balance

    (d)

    Adjusted to any of the credit balance

  21. Purchases book is used to record______

    (a)

    all purchases of goods

    (b)

    all credit purchases of assets

    (c)

    all credit purchases of goods

    (d)

    all purchases of assets

  22. Sales return book is used to record_________

    (a)

    Returns of goods by the customer for which cash is paid immediately

    (b)

    Returns of goods by the customer for which cash is not paid immediately

    (c)

    Returns of assets by the customer for which cash is not paid immediately

    (d)

    Returns of assets by the customer for which cash is paid immediately

  23. The person who endorses is called the _____

    (a)

    Endorser

    (b)

    Endorsee

    (c)

    Drawer

    (d)

    Drawee

  24. Returns outward book is also known as _____

    (a)

    Purchase returns book

    (b)

    Sales return book

    (c)

    Purchase Book

    (d)

    Sales Book

  25. Cash book is a_______

    (a)

    Subsidiary book

    (b)

    Principal book

    (c)

    Journal proper

    (d)

    Both subsidiary book and principal book

  26. If the debit and credit aspects of a transaction are recorded in the cash book, it is ______.

    (a)

    Contra entry

    (b)

    Compound entry

    (c)

    Single entry

    (d)

    Simple entry

  27. ____________ is maintained by every business, whether small or large is size

    (a)

    Sales book

    (b)

    Purchase book

    (c)

    Cash book

    (d)

    Credit book

  28. On Jan 1st2015, 1,000 given to petty cashier. He has spent Rs 860 during the month of January. On Feb 1st to make the imprest he will receive the cheque for ________

    (a)

    1,000

    (b)

    860

    (c)

    1,860

    (d)

    960

  29. Debit balance in the bank column of the cash book means ____________.

    (a)

    Credit balance as per bank statement

    (b)

    Debit balance as per bank statement

    (c)

    Overdraft as per cash book

    (d)

    None of the above

  30. A bank reconciliation statement is prepared to know the causes for the difference between:

    (a)

    The balance as per the cash column of the cash book and bank column of the cash book.

    (b)

    The balance as per the cash column of the cash book and bank statement

    (c)

    The balance as per the bank column of the cash book and the bank statement.

    (d)

    The balance as per petty cash book and the cash book

  31. When the balance as per cash book is the starting point; direct deposits by the customers are_______

    (a)

    added

    (b)

    subtracted

    (c)

    neither of the two

  32. Uncollected cheques are also known as __________

    (a)

     outstanding cheques

    (b)

    Uncleared cheques

    (c)

    Outstation cheques

    (d)

    Both a & c

  33. Error of principle arises when

    (a)

    There is complete omission of a transaction

    (b)

    There is partial omission of a transaction

    (c)

    Distinction is not made between capital and revenue items

    (d)

    There are wrong postings and wrong castings

  34. Wages paid for installation of machinery wrongly debited to wages account is an error of

    (a)

    Partial omission

    (b)

    Principle

    (c)

    Complete omission

    (d)

    Duplication

  35. Goods of Rs. 5000 purchased from Mr.B were recorded in sales book, the rectification of this error will________.

    (a)

    Increase the gross profit

    (b)

    Reduce the gross profit

    (c)

    Have no effect on gross profit

    (d)

    None of the above

  36. ________ are those transactions which are not recorded as per the rules of debit and credit. 

    (a)

    Error of principle

    (b)

    Error of Commission

    (c)

    Error of Omission

    (d)

    Compensating errors

  37. Under straight line method, the amount of depreciation is

    (a)

    Increasing every year

    (b)

    Decreasing every year

    (c)

    Constant for all the years

    (d)

    Fluctuating every year

  38. A depreciable asset may suffer obsolescence due to______________

    (a)

    Passage of time

    (b)

    Wear and tear

    (c)

    Technological changes

    (d)

    None of the above

  39. Depreciation is the gradual and permanent decrease in the value of an asset from any cause ________.

    (a)

    Owen

    (b)

    Wheeler

    (c)

    Spicer and Pegler

    (d)

    R.N. Carter

  40. _________ is also known as residual value.

    (a)

    Book value

    (b)

    Scrap value

    (c)

    Amortization

    (d)

    Wear and tear

  41. Expenditure incurred Rs.20,000 for trial run of a newly installed machinery will be

    (a)

    Preliminary expense

    (b)

    Revenue expenditure

    (c)

    Capital expenditure

    (d)

    Deferred revenue expenditure

  42. Revenue expenditure is intended to benefit

    (a)

    Past period

    (b)

    Future period

    (c)

    Current period

    (d)

    Any period

  43. Revenue receipts are__________ in the business.

    (a)

    non-recurring

    (b)

    recurring

    (c)

    neither of the above

    (d)

    A AND B

  44. Cost of acquisition of land and building is an example of __________.

    (a)

    Capital expenditure

    (b)

    Revenue expenditure

    (c)

    Capital receipts

    (d)

    Revenue receipts

  45. Net profit of the business increases the ______________.

    (a)

    Drawings

    (b)

    Receivables

    (c)

    Debts

    (d)

    Capital

  46. Carriage inwards will be shown

    (a)

    In the trading account

    (b)

    In the profit and loss account

    (c)

    On the liabilities side

    (d)

    On the assets side

  47. ____________ are assets.of a' relatively permanent nature used in the operations of business and not intended for sale

    (a)

    Fixed Assets

    (b)

    Current Assets

    (c)

    Tangible Assets

    (d)

    Intangible Assets

  48. Fixed assets does not include

    (a)

    Plant

    (b)

    Stock

    (c)

    Furniture

    (d)

    Computer

  49. Net profit is

    (a)

    Debited to capital account

    (b)

    Credited to capital account

    (c)

    Debited to drawings account

    (d)

    Credited to drawings account

  50. Closing stock is valued at

    (a)

    Cost price

    (b)

    Market price

    (c)

    Cost price or market price whichever is higher

    (d)

    Cost price or net realisable value whichever is lower

  51. _________contributed by proprietor is a liability to the business.

    (a)

    Drawings

    (b)

    Profit

    (c)

    Loss

    (d)

    Capital

  52. __________represents the amount or goods withdrawn by the proprietor from the business for his personal use. 

    (a)

    Drawings

    (b)

    Purchase

    (c)

    Sales

    (d)

    Capital

  53. In accounting, computer is commonly used in the following areas:

    (a)

    Recording of business transactions

    (b)

    Payroll accounting

    (c)

    Stores accounting

    (d)

    All the above

  54. An example of output device is

    (a)

    Mouse

    (b)

    Printer

    (c)

    Scanner

    (d)

    Keyboard

  55. ______________ can perform functions at much higher speed than the speed of human beings.

    (a)

    Computerised accounting system

    (b)

    Hardware system

    (c)

    Software system

    (d)

    None of these

  56. ________________ packages are used by small and conventional business enterprises.

    (a)

    Readymade

    (b)

    customised

    (c)

    Tailor-made

    (d)

    None of these

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