MCQ Questions Chapter 1 Introduction to Accounting Class 11 Accountancy

Please refer to MCQ Questions Chapter 1 Introduction to Accounting Class 11 Accountancy with answers provided below. These multiple-choice questions have been developed based on the latest NCERT book for class 11 Accountancy issued for the current academic year. We have provided MCQ Questions for Class 11 Accountancy for all chapters on our website. Students should learn the objective based questions for Chapter 1 Introduction to Accounting in Class 11 Accountancy provided below to get more marks in exams.

Chapter 1 Introduction to Accounting MCQ Questions

Please refer to the following Chapter 1 Introduction to Accounting MCQ Questions Class 11 Accountancy with solutions for all important topics in the chapter.

MCQ Questions Answers for Chapter 1 Introduction to Accounting Class 11 Accountancy

Question. Transaction are posted into Ledger Account from?
(a) Vouchers
(b) Journal Book
(c) Bank Statement
(d) None of these

Question: Which of the following is not a business transaction?
a. Bought furniture of Rs. 10,000 for business
b. Paid for salaries of employees Rs. 5,000
c. Paid son’s fees from her personal bank account Rs. 20,000
d. Paid son’s fees from the business Rs. 2,000 

Question: Use of common unit of measurement and common format of
reporting promotes:
a. Comparability
b. Understandability
c. Relevance
d. Reliability   

Question: Deepti wants to buy a building for her business today. Which of the following is the relevant data for her decision?
a. Similar business acquired the required building in 2000
for Rs. 10,00,000
b. Building cost details of 2003
c. Building cost details of 1998
d. Similar building cost in August, 2005 Rs. 25,00,000 

Question: Which is the last step of accounting as a process of information?
a. Recording of data in the books of accounts
b. Preparation of summaries in the form of financial statements
c. Communication of information
d. Analysis and interpretation of information 

Question: Which qualitative charactersistics of accounting information is reflected when accounting information is clearly presented?
a. Understandability
b. Relevance
c. Compatibility
d. Reliability 

Question. Cost of Goods Manufactured is determined by?
(a) Financial Accounting
(b) Cost Accounting
(c) Management Accounting
(d) Human Resource Accounting

Question. Which of the following will not be included in the Books of Accounts?
(a) Sales of Goods
(b) Payment of Salary
(c) Quality of Staff
(d) Purchase of Goods

Question. Which of the following is the process of entering business transactions of financial character in the books of original entry in terms of money?
(a) Classifying
(b) Summarising
(c) Interpretation
(d) None of these

Question. …. Is the process of grouping the transactions of one nature at one place, in a separate account
(a) Recording
(b) Classifying
(c) Summarising
(d) Interpretation

Question. Summarising is the art of presenting the …. In an understandable manner.
(a) Business Information
(b) Classified Data
(c) Transactions
(d) All of these

Question. which of these concepts is a process of give and take with “event” as the end result of it?
(a) Measurement
(b) Financial Information
(c) Transactions
(d) Communication

Question. …. refers to the entire body of the theoretical knowledge of Accounting?
(a) Financial Management
(b) Accounting
(c) Accountancy
(d) None of the Above

Question. Book Keeping and Accounting
(a) Means same and are used interchangeably
(b) Doesn’t means same and are not used interchangeably
(c) Means both
(d) None of the above

Question. Accounting
(a) Includes Book Keeping
(b) Doesn’t include Book Keeping
(c) May or may not include Book Keeping
(d) None of the above

Question. Accounting and Accountancy are one and same thing.
(a) True
(b) False
(c) Partially False
(d) Can’t Say

Question. Which of the following are the objectives of Accounting?
(i) Maintain systematic and complete record of business transactions.
(ii) Ascertain financial position of business.
(iii) Provide useful information to various interested parties.
(a) (i)
(b) (iii)
(c) (i) & (ii)
(d) All of these

Question. The limitation of accounting are?
(a) Influenced by personal judgements
(b) Based on Historical Costs
(c) Affected by window dressing
(d) All of these

Question. Which of the following is a limitation of accounting?
(a) Assisting to Management
(b) Replaces Memory
(c) Unrealistic Information
(d) Evidence in Court

Question. which of these is a feature of Accounting?
(a) Communicating financial information
(b) Assisting in Decision Making
(c) Helping interested users in judgement
(d) All of the above

Question. In measurement, what type of transactions are considered ?
(a) Quantitative
(b) Qualitative
(c) Both
(d) Can’t say

Question. In accounts recording is made of:
(a) Only Financial Transactions
(b) Only Non-Financial Transactions
(c) Both
(d) Personal Transactions of the Proprietor

Question. Internal users of accounting information are:
(a) Potential Investors
(b) Creditors
(c) Management
(d) Bankers.

Question. Accounting information is used to compare the result of current year with the previous year to analyse the changes.
(a) True
(b) False
(c) Partially True
(d) Can’t Say

Question. Although accounting provides lot of advantages to the business, it suffers from certain limitations. Which of these is not a limitation of Accounting?
(a) It ignores quantitative elements
(b) It is historical in nature
(c) It is not free from personal bias
(d) It is affected by window dressing

Question. If accounting information is based on facts and it is verifiable by documents it has the quality of…..
(a) Relevance
(b) Reliability
(c) Understandability
(d) Comparability

Question. Qualitative characteristic of Accounting includes
(a) Reliability and Relevance
(b) Understandability and Comparability
(c) Both
(d) None

Question. Which of the following statement is not true?
(i) Accounting depends on book keeping.
(ii) Accountancy depends on book keeping and accounting.
(iii) Accounting includes summarising the classified transactions.
(iv) Accountancy is narrow in scope.
(a) (i) (ii) (iv)
(b) (ii) (iv)
(c) (iv)
(d) None of these

Question. Identify correct sequence
(a) Recording, Summarising, Classifying, Interpreting
(b) Classifying, Interpreting, Recording, Summarising
(c) Recording, Classifying, Summarising, Interpreting
(d) Interpreting, Recording, Classifying, Summarising

Question. Accounting is a means to determine the current worth of a business enterprise on the basis of its profit earning capacity. The given statement highlights which of the role of accounting?
(a) As a language
(b) As current economic policy
(c) As a historical record
(d) As an information system

Question. Which of these branches of accounting directly or indirectly helps in management decisions?
(a) Cost Accounting
(b) Management Accounting
(c) Financial Accounting
(d) All of the above

Question. All of the following are functions of accounting except
(a) Decision Making
(b) Ledger Posting
(c) Communicating
(d) Forecasting

Question. Accounting starts with …. Financial transactions and ends with…. ?
(a) Recording, Communicating
(b) Classifying, Analysing
(c) Identifying, Analysing
(d) Identifying, Communicating

Question. Book Keeping is a wider concept than Accounting?
(a) True
(b) False
(c) Partly True
(d) Partly False

Question. Which of the following is not a subfield of accounting?
(a) Management Accounting
(b) Cost Accounting
(c) Book Keeping
(d) Financial Accounting

Question. Purposes of an accounting system include all the following except:
(a) Interpret and record the effects of business transactions.
(b) Classify the effects of transactions to facilitate the preparation of reports.
(c) Dictate the specific types of business enterprise transactions that the enterprises may engage in.
(d) None of the above.

Question. Which of the following is not a qualitative characteristic of accounting information?
(a) Reliability
(b) Understandability
(c) Comparability
(d) Materiality

Question. Which qualitative characteristic of accounting information is reflected when accounting information is clearly presented?
(a) Reliability
(b) Relevance
(c) Comparability
(d) Understandability

Question. External users of accounting information are:
(a) Researchers
(b) Government
(c) Potential Investors
(d) All of the Above

Question. The branches of accounting are?
(a) Financial Accounting
(b) Cost Accounting
(c) Social Responsibility Accounting
(d) All of these

Question. Financial statements do not consider
(a) Assets expressed in monetary terms.
(b) Liabilities expressed in monetary terms.
(c) Both
(d) Assets and Liabilities expressed in non monetary terms

Question. Use of common unit of measurement and common format of reporting promotes:
(a) Reliability
(b) Relevance
(c) Comparability
(d) Understandability

Question. Which of the following is not a business transaction?
(a) Purchased Furniture for Rs. 50,000 for business
(b) Paid Rs. 25,000 as salaries to employees
(c) Proprietor paid Rs. 10,000 for the school fees of his son from his own bank account.
(d) Proprietor paid Rs.10,000 for the school fees of his son from business

Question. Ghanshyam is a furniture dealer. Which one of the following will not be recorded in his books?
(a) Purchase of Timber for Rs. 50,000
(b) Sofa set worth Rs. 40,000 taken to his home
(c) Sale of household furniture for Rs. 5,000
(d) Dining table of Rs. 30,000 given to his friend as a gift.

Question. Match the Columns:

Column I	Column II
A. Workers.	(i). External Users
B. Employee Unions	(ii). Internal Users
C. Relevancy	(iii). Available in time
D. Comparability	(iv). Common period related information

Codes :
(a) A – (i), B – (ii), C – (iii), D – (iv)
(b) A – (i), B – (ii), C – (iv), D – (iii)
(c) A – (ii), B – (i), C – (iii), D – (iv)
(d) A – (ii), B – (i), C – (iv), D – (iii)

Question. Customers of business should not be considered as users of accounts prepared by business. They are not interested to know performance of business.
(a) True
(b) False

Question. Accounting is not the language of business.
(a) True
(b) False

Question. Financial Accounting is concerned with internal reporting to the managers of business unit.
(a) True
(b) False

Question. Accounting is not accepted as evidence in legal matters.
(a) True
(b) False

Question. Objectives of book keeping are complete recording of transactions & ascertainment of financial effect on the business.
(a) True
(b) False

Question. Assertion (A) Book keeping involves summarising the classified transactions in the form of profit and loss account and balance sheet.
Reason (R) Book keeping is an art of recording in books of accounts, the monetary aspects of commercial or financial transactions. It is concerned with record keeping maintenance of books of accounts.
(a) Both A and R are True and R is the correct explanation of A.
(b) Both A and R are True but R is not the correct explanation of A.
(c) A is False but R is True.
(d) A is True but R is False

Question. Assertion (A) Accounting is an Art as it involves recording, classifying, summarising business transactions with a view to ascertain the net profit.
Reason (R) Accounting is a Science since it is based on certain specified principles and accounting standards.
(a) Both A and R are True and R is the correct explanation of A.
(b) Both A and R are True but R is not the correct explanation of A.
(c) A is False but R is True.
(d) A is True but R is False

Question. Assertion (A) Book keeping and Accounting are same.
Reason (R) Accounting requires analytical skill to perform whereas it is not require in case of book keeping.
(a) Both A and R are True and R is the correct explanation of A.
(b) Both A and R are True but R is not the correct explanation of A.
(c) A is False but R is True.
(d) A is True but R is False

Question. Assertion (A) Environmental protection groups are one of the multiple external users of accounting information.
Reason (R) Social responsibility groups want to know the impact of business on environment and steps taken by an enterprise for the protection of environment.
(a) Both A and R are True and R is the correct explanation of A.
(b) Both A and R are True but R is not the correct explanation of A.
(c) A is False but R is True.
(d) A is True but R is False

Question. Assertion (A) Important transactions and events, if cannot be measured in terms of money are not recorded in the books of accounts.
Reason (R) Money is the common denominator in recording and reporting the business transactions.
(a) Both A and R are True and R is the correct explanation of A.
(b) Both A and R are True but R is not the correct explanation of A.
(c) A is False but R is True.
(d) A is True but R is False

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