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MCQ Questions for Class 11 Accountancy with Answers: Financial Accounting
Q1. Which of the following is the cause of depreciation?
(i) By permanent fall in prices
(ii) By constant use
(iii) By Expiry of time
(iv) All of the Above
(iv) All of the Above
Q2. Which method of charging depreciation is accepted by Income Tax Act?
(i) Written down value method
(ii) Both Written down value method and Straight Line method
(iii) Straight Line method
(iv) None of the above
(i) Written down value method
Q3. Which of the following is the example of Capital Reserve?
(i) Workmen’s Compensation Fund
(ii) None of these
(iii) Premium Received on issue of shares or debentures
(iv) General Reserve
(iii) Premium Received on issue of shares or debentures
Q4. Which one is not the cause of depreciation?
(i) Efflux of time.
(ii) Price fluctuation.
(iii) Obsolescence.
(iv) Natural wear and tear.
(ii) Price fluctuation.
Q5. Depreciation is which of the following expenditure:
(i) Non-cash
(ii) Both cash and non-cash
(iii) Cash
(iv) None of the above
(i) Non-cash
Q6. Dividend Equalisation Reserve is :
(i) Specific Reserve
(ii) None of these
(iii) Secret Reserve
(iv) General Reserve
(i) Specific Reserve
Q7. Depreciation is calculated from the date of .
(i) Purchase of asset
(ii) Receipt of asset at business premises
(iii) Asset put to use
(iv) Asset installed
(iii) Asset put to use
Q8. Which of the following statements is NOT true about Reserves?
(i) It is a charge against profits.
(ii) It is an appropriation of profit.
(iii) It is shown on the liability side of Balance sheet.
(iv) It is discretionary as a matter of financial prudence.
(i) It is a charge against profits.
Q9. According to Companies Act, 1956 Secret Reserves can be created by:
(i) Only Private Company
(ii) Banking and insurance companies
(iii) Only Public Company
(iv) Companies Registered under Companies Act
(ii) Banking and insurance companies
Q10. The term____is used to show loss in the value of intangible assets.
(i) Amortization
(ii) Obsolescence
(iii) Depletion
(iv) Depreciation
(i) Amortization
Q11. Under which method the amount of depreciation remains same year after year?
(i) Fixed Installment Method
(ii) Reducing Balance Method
(iii) Annuity method
(iv) Depletion Method
(i) Fixed Installment Method
Q12. Depreciation is Charged on :
(i) Current Assets
(ii) Fixed Tangible Assets
(iii) None of these
(iv) Both Current and Fixed Assets
(ii) Fixed Tangible Assets
Q13. If the amount of any known liability can be determined with accuracy
(i) a liability should be provided.
(ii) a provision should be made,
(iii) a reserve should be set aside.
(iv) None of these.
(i) a liability should be provided.
Q14. Which of the following factor DOES NOT affect the amount of depreciation?
(i) Market value of asset
(ii) Estimated useful life of asset
(iii) Total cost of asset
(iv) Scrap value
(i) Market value of asset
Q15. The cause of Depreciation is :
(i) Wear and tear
(ii) Obsolescence
(iii) All of these
(iv) Usage of Asset
(iii) All of these
Q16. The loss on sale of an asset is debited to:
(i) Profit and Loss Account
(ii) Trial Balance Cr. Side
(iii) Balance Sheet
(iv) Trading Account
(i) Profit and Loss Account
Q17. Dividend Equalization Reserveand Debenture Redemption reserveare examples of
(i) Revenue Reserve
(ii) General Reserve
(iii) Capital Reserve
(iv) Secret Reserve.
(i) Revenue Reserve
Q18. Under Reducing Balance Method, depreciation to be charged :
(i) Scrap Value
(ii) None of these
(iii) Real Value
(iv) Original value
(ii) None of these
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MCQ Questions for Class 11 Accountancy: Financial Accounting
- Lesson 1. Introduction to Accounting Class 11 MCQ
- Lesson 2. Theory Base of Accounting Class 11 MCQ
- Lesson 3. Recording of Transactions 1 Class 11 MCQ
- Lesson 4. Recording of Transactions 2 Class 11 MCQ
- Lesson 5. Bank Reconciliation Statement Class 11 MCQ
- Lesson 6. Trial Balance and Rectification of Errors Class 11 MCQ
- Lesson 7. Depreciation, Provisions and Reserves Class 11 MCQ
- Lesson 8. Bills of Exchange Class 11 MCQ
- Lesson 9. Financial Statements 1 Class 11 MCQ
- Lesson 10. Financial Statements 2 Class 11 MCQ
- Lesson 11. Accounts from Incomplete Records Class 11 MCQ
- Lesson 12. Applications of Computers in Accounting Class 11 MCQ
- Lesson 13. Computerised Accounting System Class 11 MCQ