DELHI PUBLIC SCHOOL, NACHARAM

Worksheet on MCQ – Accountancy XI

Q1. Due to which of the following, contingent liabilities are shown in the Balance Sheet:

A Dual Aspect Concept.t. B Convention of Full Disclosure. C Convention of Materiality.

D Going Concern Concep

Q2. Which of the following would be considered as external users of accounting information's?

A Board of Directors B Shareholders C Finance manager D Sales manager

Q3. Which of the following accounts has a credit balance?

A Carriage Inward. B Discount Received. C Carriage Outward. D Discount Allowed.

Q4. Assets in the balance sheet are shown at cost less depreciation rather than their replacement costbecause of
which accounting convention?
A Going concern B Matching C Realization D Money measurement

Q5. A specialised branch of accounting concerned with the processes and techniques of ascertaining costsof
products and services is .
A Financial accounting B Budgetary accounting C Cost accounting D Tax accounting

Q6. Accrual Basis of Accounting recognises:

A Outstanding and Prepaid Expenses. B Accrued Incomes and Incomes Received in Advance.
C Both (a) and (b). D None of the above.

Q7. Which of the following groups/ parties are interested in the accounting information of the business?

A Proprietors or owners B Creditors C Tax authorities D All of these

Q8. A business transaction in which money comes into the business immediately after the goods are
delivered or services are rendered is called .
A Cash Transaction B Credit Transaction C Black Money Transaction
D Hawala Transaction

Q9. Tangible Assets do not include:

A Goodwill. B Furniture. C Stock. D Cash.

Q10. Purchases refers to the buying of:

A Stationery for office use. B Assets for the factory. C Goods of resale.
D Investment.

Q11. External users of accounting information are:

A Researchers. B Government. C Potential Investors. D All of the above.

Q12. As per Dual Aspect Concept:

A Assets = Liabilities - Capital. B Assets = Capital - Liabilities. C Assets = Liabilities + Capital.

D Capital = Assets + Liabilities
Q13. The cost of a small calculator is accounted as an expense and not shown as an asset in a financialstatements of a business entity due to ........... .
A Materiality Convention. B Matching concept. C Periodicity concept. D Convention of full disclosure.

Q14. The sale of merchandise to the customers is an:

A External event B Internal event C Social event D None of the above

Q15. Under Accrual Basis of Accounting:

A Both Cash and Credit transactions are recorded. B Only cash transactions are recorded.
C Only credit transactions are recorded. D None of the above.

Q16. According to the Going Concern Concept:

A Assets are recorded at cost and are depreciated over their useful life.
B Assets are valued at their market value at the year-end and are recorded in the books of account.
C
Assets are valued at their market value, recorded in the books and depreciation is charged on the marketvalue.
D None of the above.

Q17. Double entry system was invented by .

A Luca Pacioli B J. Batty C H.J,. Wheldon D Vanskicle

Q18. Sale or purchase of goods or services for immediate cash payment is known as .
A Cash transaction B Credit transaction C Non-monetary transaction
D All of the above

Q19. Which is the accounting concept that required the practice of crediting closing stock to the tradingaccount?
A Going concern B Cost C Realization D Matching

Q20. Withdrawal of cash from business by the proprietor is credited to :

A. Drawings A/c B. Capital A/c C. Cash A/c D. Profit & Loss
Practical Questions

2. Prepare an Accounting Equation from the following:

3. Prepare an Accounting Equation from the following:

4. Classify the accounts under Modern and Traditional Approach: