Theory Base of Accounting Class 11 MCQ with Answers Pdf: 

1. Which of the following is a characteristics of accounting_____

(1) Understandability:

(2) Relevance.

(3) Reliability.

(4) Comparability.

(5) All of these 

Answer: 5

2. Meaning of credibility of going concern is:

(1) Closing of business

(2) Opening of business

(3) Continuing of business

(4) None of these.

Answer: 3

3. Generally the duration of an Accounting period is of-

(1) 6 months

(2) 3 months

(3) 12 months

(4) 1 month.

Answer: 3

4. The primary qualities that make accounting information useful for decision making are _______.

(1) Relevance and freedom from bias

(2) Reliability and comparability

(3) Comparability and consistency

(4) None of the above

Answer: 2

5. The sum of Liabilities and Capital is_________

(1) Expense

(2) Income

(3) Drawings

(4) Assets.

Answer: 4

6. The amount drawn by a businessman for his personal use is _______.

(1) Capital

(2) Drawing

(3) Expenditure

(4) Loss

Answer: 2

7. The basic accounting postulates are denoted by______.

(1) Concepts

(2) Bookkeeping

(3) Accounting standards

(4) None of the above

Answer: A

8. What are the basic of accouting?

(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 of these 

(4) None of these 

Answer: 3

9. Which of the following is not a characteristic of accounting________

(1) Timeliness.

(2) Understandability.

(3) Comparability

(4) Future Transaction 

Answer: 4

10. A concept that a business enterprise will not be sold or liquidated in the near future is known as:

(1) Going concern

(2) Economic entity

(3) Monetary unit

(4) None of the above

Answer: 1