Financial Statements 2 MCQ for Class 11 Accountancy Chapter 10 Answer

We have completed the NCERT/CBSE chapter-wise Multiple Choice Questions for Class 11 Accountancy book Chapter 10 Financial Statements 2 with Answers by expert subject teacher for latest syllabus and examination. You can Prepare effectively for the exam, Taking the help of the Class 11 Accountancy Objective Questions PDF free of cost from here. Students can take a free test of the Multiple Choice Questions of Financial Statements 2. Each Questions has four options followed by the right answer. Download the Accountancy Quiz Questions with Answers for Class 11 free Pdf and prepare to exam and help students understand the concept very well.

MCQ Questions for Class 11 Accountancy with Answers: Financial Accounting

Q1. Outstanding Salary is _ account:

(i) Real Account
(ii) Nominal Account
(iii) Personal Account
(iv) None of these

(iii) Personal Account

Q2. Which of the following item provides the important function of shielding part of income from taxes?

(i) Inventory
(ii) Supplies
(iii) Machinery
(iv) Depreciation

(iv) Depreciation

Q3. Prepaid expenses are shown in-

(i) Liability side
(ii) Asset side
(iii) Assets or Liability side
(iv) None of these.

(ii) Asset side

Q4. If closing stock appears in Trial Balance then it will be appearing in ;

(i) Trading Account
(ii) Balance Sheet
(iii) Profit & Loss Account
(iv) Trading A/c & Balance Sheet

(ii) Balance Sheet

Q5. Depreciation is necessary to calculate:

(i) Net profitcorrect
(ii) Net financial position
(iii) Tax
(iv) None of them

(i) Net profitcorrect

Q6. Charity of goods is-

(i) Expenses
(ii) Loss
(iii) Profit
(iv) None of these.

(ii) Loss

Q7. If the insurance premium paid Rs. 1,000 and prepaid insurance Rs. 300. The amount of insurance premium shown in profit and loss account will be

(i) Rs. 1,300
(ii) Rs. 1,000
(iii) Rs. 300
(iv) Rs. 700

(iv) Rs. 700

Q8. Income tax in case of sole trader is treated as ,

(i) Personal expenses
(ii) Debtors expenses
(iii) Business expenses
(iv) None of the above

(i) Personal expenses

Q9. Prepaid expenses are also called:

(i) Advance expenses
(ii) Deferred expenses
(iii) Unexpired expenses
(iv) All of these

(iv) All of these

Q10. The object of non – trading concerns-

(i) Social service
(ii) Profit earning
(iii) Both of these
(iv) None of the above.

(i) Social service

Q11. If the rent received in advance Rs. 2,000. The adjustment entry will be

(i) Debit profit and loss account and Credit rent account.
(ii) Debit rent account Credit rent received in advance account.
(iii) Debit rent received in advance account and Credit rent account.
(iv) None of these

(ii) Debit rent account Credit rent received in advance account.

Q12. Prepaid Insurance existing in the Trial Balance is shown in the Balance Sheet in the assets side because of

(i) Accrual Concept.
(ii) Matching Principle.
(iii) Materiality Principle.
(iv) Cost Principle.

(i) Accrual Concept.

Q13. Income earned but not received is shown in:

(i) Liabilities
(ii) Foot notes
(iii) Assets
(iv) None of them

(iii) Assets

Q14. Adjusting Entries?

(i) Assign revenue to the period in which they are earned
(ii) Help to properly measure the period’s Net Profit / Loss
(iii) Bring asset and liability account to correct balances
(iv) All of about statements are true regarding Adjusting Entries

(iv) All of about statements are true regarding Adjusting Entries

Q15. Which of the following is not an item of income of Non – trading concern –

(i) Entrance fees
(ii) Interest
(iii) Govt. Aid
(iv) Salary.

(iv) Salary.

Q16. Accrued income is :

(i) A Liability
(ii) Revenue
(iii) An Asset
(iv) An Expense

(iii) An Asset

Q17. Which of the following is true for every adjusting entry?

(i) They affect only income statement accounts
(ii) They affect balance sheet account and an income statement account
(iii) They affect only balance sheet accounts
(iv) They affect only accounts with normal debit balance

(ii) They affect balance sheet account and an income statement account

Q18. Which of the following is recorded in income & expenditure account –

(i) Revenue items
(ii) Capital items
(iii) Revenue and capital items
(iv) None of these.

(i) Revenue items

Q19. Closing stock is shown in Financial Statements at:

(i) Cost price
(ii) Reliasable Value
(iii) Cost price or Reliasable Value whichever is greater
(iv) Cost price or Reliasable Value whichever is less

(iv) Cost price or Reliasable Value whichever is less

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Financial Statements 2 MCQ Questions for Class 11 Accountancy Chapter 10 with Answers