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Introduction to Accounting Class 11 MCQ Pdf

Introduction to Accounting MCQ Pdf

1. What is accounting in simple words?

(1) the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results.

(2) the principles and procedures of this system studied accounting as a freshman.

(3) work done in accounting or by accountants.

(4) All of these 

Answer: 4


2. Bookkeeping is ______.

(1) An art

(2) A science

(3) Both an art as well as science

(4) None of these

Answer: C


3. ___________ is the last step of accounting as a process of information.

(a) Recording of data in the books of accounts

(b) Preparations of summaries in the form of financial statement

(c) Communication of information

(d) Analysis and interpretation of information

Answer: 3


4. The art of recording all business transactions systematically in a set of books is called______

(1) Accounting

(2) Book–keeping

(3) Ledger

(4) None of these.

Answer: 2


5. The person, firm, or institution who does not pay the price in cash for the goods purchased or the services received is called

(1) Creditor

(2) Proprietor

(3) Debtor

(4)None of these.

Answer: 3


6. What is called the art of recording business transactions systematically?

(1) Book Keeping

(2) Accountancy 

(3) Ledger

(4) None of these.

Answer: 1


7. Cash, goods, or assets invested by the proprietor in the business for earning profit is called ______.

(1) Profit

(2) Capital

(3) Fixed assets

(4) None of these

Answer: 2


8. Business transactions are ordinarily summarized in books called______

(1)  journals 

(2) ledgers

(3) Books

(4) Both 1 and 2

Answer: 4


9. Which of the following is a type of accounting?

(1) tax accounting, 

(2) financial accounting

(3) management accounting. 

(4) All of these 

Answer: 4


10. What are the basics of accounting?

(1) Basic accounting refers to the process of recording a company’s financial transactions. 

(2) It involves analyzing, summarizing, and reporting these transactions to regulators, oversight agencies, and tax collection entities

(3) Both 

(4) None of these 

Answer: 3


11. What is the heart of accounting?

(1) Debits and credits

(2) Banks

(3) Investors 

(4) None of these 

Answer: 1


12. Which of the following is a function of accounting?

(1) inventory management, budgeting, 

(2) reports and financial statements, 

(3) legal compliance and financial control, and record-keeping

(4) All of these 

Answer: 4


13. Which of the following is not a function of accounting?

(1) Analysis of financial data. 

(2) budget planning.

(3)Prevention of frauds and errors

(4) Making Profit

Answer: 4


14. What is the accounting cycle?

(1) The accounting cycle is the process of accepting, recording, sorting, and crediting payments made and received within a business during a particular accounting period.

(2) The accounting cycle is a collective process of identifying, analyzing, and recording the accounting events of a company.

(3) Both 

(4) None of these 

Answer: 3


15. Which of the following is a basic rule of accounting?

(1) Debit the receiver and credit the giver.

(2) Debit what comes in and credit what goes out.

(3) Debit expenses and losses, credit income and gains.

(4) All of these 

Answer: 4


16. Which of the following is a basic principle of accounting?

(1) Revenue Recognition Principle.

(2) Cost Principle. 

(3) Matching Principle. 

(4) All of these 

Answer: 4


17. What are the 3 types of accounts?

(1) Real, 

(2) Personal 

(3) Nominal Account.

(4) all of the above 

Answer: 4


18. The Golden rule for Personal, Real, and Nominal Accounts is________

(1) Debit what comes in.

(2) Credit the giver.

(3) Credit all Income and Gains.

(4) All of these 

Answer: 4

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