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.
Financial Statements 2 Class 11 MCQs Questions with Answers
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
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