Check the below NCERT MCQ Questions for Class 11 Accountancy Chapter 10 Financial Statements 2 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 2 Class 11 Accountancy MCQs Questions with Answers to help students understand the concept very well.
Class 11 Accountancy Chapter 10 MCQ With Answers
Accountancy Class 11 Chapter 10 MCQs On Financial Statements 2
Question 1.
Outstanding Expenses are related to-
(a) Current year
(b) Next year
(c) Last year
(d) None of these.
Answer
Answer: (a) Current year
Question 2.
Prepaid expenses are shown in-
(a) Liability side
(b) Asset side
(c) Assets or Liability side
(d) None of these.
Answer
Answer: (b) Asset side
Question 3.
Charity of goods is-
(a) Expenses
(b) Loss
(c) Profit
(d) None of these.
Answer
Answer: (b) Loss
Question 4.
If a person fails to pay his debt, such amount is considered as-
(a) Bad debts
(b) Bad debts recovered
(c) Provision for Bad debt
(d) None of these.
Answer
Answer: (a) Bad debts
Question 5.
The object of non – trading concerns-
(a) Social service
(b) Profit earning
(c) Both of these
(d) None of the above.
Answer
Answer: (a) Social service
Question 6.
Such persons who earn remuneration against their services are called –
(a) Seller
(b) Purchaser
(c) Professional
(d) None of these.
Answer
Answer: (c) Professional
Question 7.
Which of the following is not an item of income of Non – trading concern –
(a) Entrance fees
(b) Interest
(c) Govt. Aid
(d) Salary.
Answer
Answer: (d) Salary.
Question 8.
Receipt and payment account is a summary of-
(a) Income & Expenditure account
(b) Profit & Loss A/c
(c) Cash – book
(d) None of these.
Answer
Answer: (c) Cash – book
Question 9.
Which of the following is recorded in income & expenditure account –
(a) Revenue items
(b) Capital items
(c) Revenue and capital items
(d) None of these.
Answer
Answer: (a) Revenue items
Fill in the blanks:
1. Goods given in charity is credited in …………… Account.
Answer
Answer: Purchase
2. Such Expenses which are paid in current year but are related to next year are called ……………. expenses.
Answer
Answer: Prepaid expenses
3. Accrued income is ……………. Account.
Answer
Answer: Personal account
4. There is ……………. fall in the value of Asset due to depreciation.
Answer
Answer: Constant/ gradual
5. Interest on capital is always shown in …………….. side of profit & loss A/c.
Answer
Answer: Debit
6. Unearned income is shown on the ……………….. side of balance sheet.
Answer
Answer: Liability
7. The main object of non – trading concerns is ……………….
Answer
Answer: Social service
8. The debit side of income & expenditure A/c is called ………………. side.
Answer
Answer: Expenditure
9. Non – trading concerns maintain their books according to ………………. system.
Answer
Answer: Cash
10. …………….. account is prepared with the help of cash-book.
Answer
Answer: Receipts & payment A/c
11. Only …………… item are shown in income & expenditure A/c.
Answer
Answer: Revenue
12. ……………. represents the excess of assets over liabilities.
Answer
Answer: Capital
State True or False:
1. Depreciation is charged only in case of profits.
Answer
Answer: False
2. Unearned Income is recorded in Asset side.
Answer
Answer: False
3. Interest on Capital is income for the business.
Answer
Answer: False
4. Drawing of goods is deducted from purchases.
Answer
Answer: True
5. Doctor employed with government is an example of non – trading professional.
Answer
Answer: False
6. Professional people maintain their accounts according to cash system.
Answer
Answer: True
7. Income & expenditure account reveals cash balance.
Answer
Answer: False
8. Capital items are written in Receipts & payments account.
Answer
Answer: True
9. No adjustment is made in Receipt & payment A/c.
Answer
Answer: True
Match the following:
1.
| Column A | Column B |
| 1. Added to Expenses | (a) Interest on Capital |
| 2. Deduced from Expenses | (b) Depreciation |
| 3. Deducted from Assets | (c) Outstanding Expenses |
| 4. Added to capital | (d) Prepaid Expenses |
Answer
Answer:
| Column A | Column B |
| 1. Added to Expenses | (c) Outstanding Expenses |
| 2. Deduced from Expenses | (d) Prepaid Expenses |
| 3. Deducted from Assets | (b) Depreciation |
| 4. Added to capital | (a) Interest on Capital |
2.
| Column A | Column B |
| 1. Outstanding expense of last year | (a) Balance sheet |
| 2. Unearned income of current year | (b) Opening capital |
| 3. Hospital | (c) Professional |
| 4. Manager I Doctor / Surgeon | (d) Non-trading concern |
| 5. School/college | (e) Non-trading concern. |
Answer
Answer:
| Column A | Column B |
| 1. Outstanding expense of last year | (a) Balance sheet |
| 2. Unearned income of current year | (b) Opening capital |
| 3. Hospital | (d) Non-trading concern |
| 4. Manager I Doctor / Surgeon | (c) Professional |
| 5. School/college | (e) Non-trading concern. |
Answer in one word/sentence:
1. Such Expenses for which services have been received but amount is yet to be paid are called.
Answer
Answer: Outstanding Expenses
2. Recording of relevant transactions and eliminating non – related transactions is called.
Answer
Answer: Adjustment
3. Such income which is earned but not yet received is called.
Answer
Answer: Accrued or Earned Income
4. Unearned income is recorded in which side of the balance sheet?
Answer
Answer: Liability side
5. Which statement/Account reveals the financial position of the non – trading concerns?
Answer
Answer: Balance sheet
6. “The receipts and payments account is nothing as more than the summary of the cash book” who said this?
Answer
Answer: Pickles
7. When a donor provides a continuous source of income to the concerns by endowment of property or money, such a donation is called.
Answer
Answer: Endowment fund
8. What is the nature of interest on investments?
Answer
Answer: Revenue
9. The major source of non – trading concern is.
Answer
Answer: Subscription
We hope the given NCERT MCQ Questions for Class 11 Accountancy Chapter 10 Financial Statements 2 with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 11 Accountancy Financial Statements 2 MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.