MCQ Questions for Class 11 Accountancy Chapter 9 Financial Statements 1 with Answers

Check the below NCERT MCQ Questions for Class 11 Accountancy Chapter 9 Financial Statements 1 with Answers Pdf free download. MCQ Questions for Class 11 Accountancy with Answers were prepared based on the latest exam pattern. We have provided Financial Statements 1 Class 11 Accountancy MCQs Questions with Answers to help students understand the concept very well.


Q1. The object of non – trading concerns-

(a) Social service
(b) Profit earning
(c) Both of these
(d) None of the above

(a) Social service


Q2. Closing stock is generally valued at ………….?

(a) Cost Price
(b) Market Price
(c) Cost price or Market price whichever is higher
(d) Cost price or Market price whichever is lower

(d) Cost price or Market price whichever is lower


Q3. Depreciation is necessary to calculate:

(a) Net profitcorrect
(b) Net financial position
(c) Tax
(d) None of them

(a) Net profitcorrect


Q4. Which of the following is correct:

(a) Operating profit = Operating profit – Non-operating expenses – Non-operating incomes
(b) Operating profit = Net profit + Non-operating expenses + Non-operating incomes
(c) Operating profit = Net profit + Non-operating expenses – Non-operating incomes
(d) Operating profit = Net profit – Non-operating expenses + Non-operating incomes

(c) Operating profit = Net profit + Non-operating expenses – Non-operating incomes


Q5. Trading Account discloses-

(a) Gross profit
(b) Net profit
(c) Net loss
(d) Gross profit or Gross loss

(d) Gross profit or Gross loss


Q6. Direct Expenses are entered in:

(a) Trading Account
(b) profit & Loss Account
(c) Balance sheet
(d) None of these

(a) Trading Account


Q7. Profit and loss Account discloses:

(a) Gross profit
(b) Gross profit or Gross loss
(c) Gross profit or Gross loss
(d) None of these

(b) Gross profit or Gross loss


Q8. Goodwill is a-

(a) Fixed Asset
(b) Current Asset
(c) Fictitious Asset
(d) None of these

(a) Fixed Asset


Q9. Drawing is deducted from:

(a) Sales
(b) Purchase
(c) Returns outward
(d) Capital

(b) Purchase


Q10. Every adjusting entry affects?

(a) Income statement account only
(b) Balance sheet account only
(c) Both A & B
(d) None

(c) Both A & B


Q11. Adjusting entries are made:

(a) At the beginning of the year
(b) At the end of the year correct
(c) During the yearwrong
(d) All of these

(b) At the end of the year correct


Q12. In a recession:

(a) Unemployment is likely to be low
(b) Prices are likely to increase
(c) Growth is negative correct
(d) Growth is slow

(c) Growth is negative correct


Q13. Outstanding expenses are

(a) Current Liability
(b) Fixed Liability
(c) Contingent Liability
(d) None of these

(a) Current Liability


Q14. Under the diminishing balance method, depreciation is calculated on:

(a) Scrap value
(b) on original value
(c) on book value correct
(d) None of them

(c) on book value correct


Q15. Which of the following item provides the important function of shielding part of income from taxes?

(a) Inventory
(b) Supplies
(c) Machinery
(d) Depreciation

(d) Depreciation


Q16. Outstanding expenses are those expenses which have became …………… during the accounting year

(a) Payable
(b) Payed
(c) Received
(d) Receivable

(a) Payable


Q17. Depreciation arises because of:

(a) Wear and tear correct
(b) Decrease in the value of assetswrong
(c) Increase in the value of liability
(d) Decrease in capital

(a) Wear and tear correct


Q18. The revenue receipt is shown in income statement as a?

(a) Expense
(b) Income
(c) Other income
(d) Other expense

(b) Income


Q19. The economic factor causing depreciation:

(a) Time factor
(b) Obsolescence and inadequacycorrect
(c) Wear and tear
(d) Money valuation

(b) Obsolescence and inadequacycorrect


Q20. Goods Return by the customer are termed as :

(a) Purchase return
(b) Customer return
(c) Sales return
(d) Inventory return

(c) Sales return


MCQ Questions for Class 11 Accountancy: Financial Accounting


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