SHARMA TUITIONS JODHPUR

CLASS 11 Accounts
Basic Accounting Terms

General instructions
● It is mandatory to attempt all the questions
● Section A contains very short answer questions 1 marks each
● Section B contains short answer questions 2 marks each
● Section C contains short answer question 3 marks each
● Section D contains long answer question 5 Mark each

Section A : 1 marks each

1. Long term assets without any physical existence but, possessing a value are called
A) Intangible assets B) Fixed assets
C) Current assets D) Investments

2. The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as
A) Current assets B) Fixed assets
C) Intangible assets D) Investments

3. Gross profit is
A) Cost of goods sold + Opening stock
B) Sales – cost of goods sold
C) Sales – Purchases
D) Net profit – expenses

4. In order to find out the value of the closing stock during the end of the financial year we,
A) do this by stocktaking
B) deduct the cost of goods sold from sales
C) deduct opening stock from the cost of goods sold
D) look in the stock account

5. Discounts received are

A) Buyer of goods granted discount by seller
B) Deducted when we receive cash
C) Given by us when we sell goods on credit
D) None of these

6. Current Liabilities include:

(a) Bills Payable (b) Creditors
(c) Outstanding Expenses (d) All of the above

7. Which of the following is not a long-term liability?

(a) Creditors (b) Term-loan
(c) Debentures (d) Capital Answer

8. Cash, goods or assets invested by the proprietor in the business for earning profit is called
 (a) Profit (b) Capital
(c) Fixed assets (d) None of these.

9. Goods taken by the proprietor for personal use is

(a) Sale. (b) Drawings.
(c) Purchase. (d) None of these.

10. Amount received or receivable against sale of goods is

(a) Revenue receipt. (b) Capital receipt.
(c) Sometimes revenue receipt and sometimes capital receipt.
(d) None ofAnswer
.

Section B : Short Answer Questions (2 marks)

1. Distinguish between fixed assets and current assets

2. Godrej Ltd. imported from Germany one machinery for sale in India and other machinery for production
purposes. Will you treat them goods or fixed assets?

Section C : Short Answer Questions (3 Marks)

1. (a) Mr. Jaspal Singh dealing in electronic goods sold 10 TV sets costing ₹30,000 each at ₹40,000 each.
Out of this ₹, 5,00,000 were received in cash and the balance is not yet received. State the amount of
revenue.
(b) How is profit different from gain

2. Give any 3 characteristics of a business transaction.

Section D : Long Answer Question (5 marks)

1. What do you mean by liabilities explain in brief all the different types of liabilities.
2. Differentiate between
(i) revenue receipt and capital receipt
(ii) revenue expenditure and capital expenditure