Accountancy MCQs for Class 11 and 12

Accountancy MCQs for Class 11 and 12: Accountancy serves as the systematic recording of a business's financial activities, encompassing transactions. This process extends beyond mere documentation; it involves summarizing, reporting, and analyzing this information. The resulting insights are invaluable for diverse users seeking to make informed decisions based on accounting data.

Accountancy MCQs

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Accountancy MCQs for Class 11 and 12 With Answers

1. To demonstrate the financial situation of a business
2. To summarize revenues and expenses over a specific period
3. To record all transactions of a business
4. To calculate the tax liability of a company

1. Income Statement
2. Cash Flow Statement
3. Balance Sheet
4. Trial Balance

1. To demonstrate the profit or loss of a business
2. To present the cash inflows and outflows during a period
3. To list the assets and liabilities of a business
4. To calculate the depreciation of fixed assets

1. Bank loan with a term of 5 years
2. Accounts payable to suppliers
3. Long-term mortgage payable
4. Equipment purchased for the business

1. An increase in assets or expenses
2. A decrease in liabilities or revenues
3. An increase in liabilities or revenues
4. A decrease in assets or expenses

1. Matching Principle
2. Revenue Recognition Principle
3. Expense Recognition Principle
4. Conservatism Principle

1. To summarise a business's financial performance.
2. To verify the mathematical accuracy of the ledger accounts.
3. To calculate the depreciation of fixed assets
4. To prepare financial statements

1. To assist management in decision-making
2. To report the financial performance to external users
3. To manage internal operations efficiently
4. To calculate tax liabilities

1. Balance Sheet
2. Income Statement
3. Cash Flow Statement
4. Trial Balance

1. To show the net income of a business
2. Provide a picture of a company's financial status
3. To record day-to-day business transactions
4. To calculate the return on investment

1. Income and cost for the managers
2. Financial conditions of the institutions
3. Company’s tax liability for a particular year
4. All the above

1. Intangible assets
2. Fixed assets
3. Current assets
4. Investments

1. Current assets
2. Fixed assets
3. Intangible assets
4. Investments

1. Current assets
2. Fixed assets
3. Intangible assets
4. Investments

1. Current Liabilities
2. Fixed liabilities
3. Contingent liabilities
4. All the above

1. Cost of goods sold + Opening stock
2. Sales – cost of goods sold
3. Sales – Purchases
4. Net profit – expenses

1. Profit and loss account
2. Balance sheet
3. Trial balance
4. Trading account

1. By stocktaking
2. Deduct the cost of goods sold from sales
3. Deduct the opening stock from the cost of items sold
4. Look in the stock account

1. Bought to be used in the business
2. Expensive items bought for the business
3. Items which will not wear out quickly
4. Of long life and not purchased specifically for resale

1. Trading account
2. P & L a/c
3. Balance Sheet
4. None of the above

1. Sales Ledger
2. Nominal ledger
3. Purchases Ledger
4. General Ledger

1. Always pay by cash
2. Cross your Cheques ‘Account Payee only, Not Negotiable.’
3. Always get the money in person
4. Not use the postal service in the future

1. Buyer of goods granted discount by seller
2. Deducted when we receive cash
3. Given by us when we sell goods on credit
4. None of these

1. The Cash Book
2. The Purchases Journal
3. The Sales Journal
4. The Sales Account

1. Discounts received
2. Purchases invoices
3. Payments to suppliers
4. Trade discounts

1. Simply deducted from the asset on the balance sheet
2. Transferred to Profit and Loss Account
3. Transferred to the Asset Account
4. Transferred to Depreciation Account

1. Debit Drawings Account, Credit Purchases Account
2. Debit Drawings Account: Credit Stock Account
3. Debit Sales Account: Credit Stock Account
4. Debit Purchases Account: Credit Drawings Account

1. No entries were made in the general ledger for things paid with petty cash
2. Exactly the same amount of entries in the general ledger
3. Fewer entries made in the general ledger
4. More entries made in the general ledger

1. The Profit and Loss Account
2. A Nominal Account
3. The Capital Account
4. A Suspense Account

1. Credited to capital accounts
2. Debited to capital accounts
3. Debited to partners’ current accounts
4. Credited to partners’ current accounts

How to Solve Accountancy MCQs for Class 11 and 12?

• Read Carefully: Begin by carefully reading the Accountancy MCQ to fully understand the question and its details.
• Identify Keywords: Identify key terms related to Accountancy concepts, account types, or Financial Statements in the MCQ.
• Eliminate Obvious Choices: Exclude options that are incorrect based on your understanding of Accountancy, narrowing down your choices.
• Apply Basic Concepts: Utilize fundamental Accountancy principles and concepts to analyze and solve the MCQ.
• Consider the Time Period: Pay attention to whether the question refers to a specific accounting period, such as a year or a shorter duration.
• Think About Transactions: Consider how financial transactions impact different accounts in the context of Accountancy – whether they increase, decrease, or remain unchanged.
• Understand Financial Statements: Know the purpose of each financial statement ( Income Statement , Balance Sheet , Cash Flow Statement ) in the context of Accountancy and understand how transactions are reflected in them.
• Use Formulas Wisely: If the MCQ involves calculations, apply relevant Accountancy formulas accurately to arrive at the correct answer.
• Consider Normal Account Balances: Be aware of whether an account in Accountancy typically has a debit or credit balance to make the right entries.
• Review Your Answers: Before finalizing your answers in the Accountancy MCQ, review them to ensure they align with Accountancy principles and logical reasoning.
• Practice Regularly: Engage in regular practice with a variety of Accountancy MCQs to enhance your understanding and speed in solving them.
• Time Management: Keep an eye on the time while solving Accountancy MCQs, and if you get stuck on a question, move on to the next one. You can revisit it if time permits.

Also Read: Tips To Attempt Class 12 Accountancy Exam