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Account M.C.Q (1 Marks)

Model Paper 1 · CBSE STD 11 Commerce (CBSE - English Medium). 21 questions.

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M.C.Q (1 Marks)

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21 questions · timed · auto-graded

MCQ 11 Mark
Reserve created by undervaluation of closing stock is called:
  • ✓
    Secret Reserve
  • B
    Capital Reserve
  • C
    General Reserve
  • D
    Specific Reserve
Answer
Correct option: A.
Secret Reserve
(A) Secret Reserve
Explanation:
Secret Reserve
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MCQ 21 Mark
The advantages of Sales Book are:
  • ✓
    All of these
  • B
    Easiness in preparing Trading Account
  • C
    Price of goods sold to each
  • D
    Knowledge of total price of party goods sold on credit
Answer
Correct option: A.
All of these
(A) All of these
Explanation:
All of these
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MCQ 31 Mark
In a business Purchases refers to the:
  • A
    All of these
  • ✓
    Purchase of goods for resale.
  • C
    Purchase of an assets to be used
  • D
    Purchase of an article to be in factory. used in office.
Answer
Correct option: B.
Purchase of goods for resale.
(B) Purchase of goods for resale.
Explanation:
Purchase of goods for resale.
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MCQ 41 Mark
Out of the following assets which one is not an intangible asset?
  • ✓
    Investments
  • B
    Patents
  • C
    Goodwill
  • D
    Trademark
Answer
Correct option: A.
Investments
(A) Investments
Explanation:
Investments is not an intangible assets.
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MCQ 51 Mark
Main elements of accounting equation are:
  • A
    Bank balance, Investments and
  • B
    Capital, Creditors and Bills Bills Receivable Payable
  • ✓
    Assets, Liabilities and Capital
  • D
    Cash, Stock and Debtors
Answer
Correct option: C.
Assets, Liabilities and Capital
(C) Assets, Liabilities and Capital
Explanation:
Assets, Liabilities and Capital
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MCQ 61 Mark
The periodic total of sales return journal is posted to
  • A
    Goods account
  • B
    Sales return account
  • C
    Purchases return account
  • ✓
    Sales account
Answer
Correct option: D.
Sales account
(D) Sales return account
Explanation:
Sales return account
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MCQ 71 Mark
Which of the following is Revenue Expenditure?
  • A
    Purchase of Investments
  • B
    Expenses on purchase of Machinery
  • C
    Building Construction Expenses
  • ✓
    Repair Expenses
Answer
Correct option: D.
Repair Expenses
(D) Repair Expenses
Explanation:
Repair Expenses
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MCQ 81 Mark
Which reserve are created for specific purpose
  • ✓
    Specific Reserve
  • B
    Dividend equalization fund
  • C
    Capital Reserves
  • D
    Dividend fund
Answer
Correct option: A.
Specific Reserve
(A) Specific Reserve
Explanation:
Specific reserves are created to meet specific purposes and contingencies. They can be utilised only for that purpose. Example: Dividend equalisation reserve, Capital redemption reserve .
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MCQ 91 Mark
Under the Cash Basis of Accounting, expenses are recorded:
  • A
    on event
  • B
    both payment and on being incurred
  • C
    on being incurred
  • ✓
    on payment
Answer
Correct option: D.
on payment
(D) on payment
Explanation:
Under the Cash Basis of Accounting, expenses are recorded on the payment side of cash account.
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MCQ 101 Mark
The accounting principle that conforms to the tendency of accountants to resolve uncertainty and doubt in favour of understanding assets and revenues and overstating liabilities and expenses is known as
  • A
    Consistency
  • ✓
    Conservatism
  • C
    Materiality
  • D
    Industry practice
Answer
Correct option: B.
Conservatism
(B) Conservatism
Explanation:
Conservatism Principle:-According to conservatism principle accountant follows the policy of playing safe, So it removes uncertainty and doubts in favour of understating assets and overstating liabilities and expenses like, maintain provisions for doubtful debts; showing depreciation but not appreciation ignoring the provision of discount on creditors.
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MCQ 111 Mark
Goodwill account is a:
  • A
    Nominal Account
  • ✓
    Real Account
  • C
    representative personal
  • D
    Personal Account account
Answer
Correct option: B.
Real Account
(B) Real Account
Explanation:
Goodwill account is a Real Account, goodwill is an intangible asset and all assets are real.
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MCQ 121 Mark
Balance of Capital Account is shown as:
  • A
    Liability Account
  • B
    Revenue Account
  • C
    Asset account
  • ✓
    Capital Account
Answer
Correct option: D.
Capital Account
(D) Capital Account
Explanation:
The balance of Capital Account is shown as Capital Account. In accounting, the capital account shows the net worth of a business at a specific point in time. It is also known as owner's equity for a sole proprietorship or shareholders' equity.
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MCQ 131 Mark
Reserves can be meant for the purpose of:
  • A
    meeting a future contingency
  • B
    strengthening the general financial position of the business
  • ✓
    All of these
  • D
    redeeming a long-term liability
Answer
Correct option: C.
All of these
(C) All of these
Explanation:
All of these
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MCQ 141 Mark
Radheshyam is a furniture dealer. Which one of the following will not be recorded in his books?
A. Purchase of Timber for Rs 50,000
B. Sofa set worth Rs 40,000 taken to his home
C. Sale of household furniture for Rs 5,000
D. Dining table of Rs 30,000 given to his friend as a gift
  • A
    Only A
  • ✓
    Only D
  • C
    Only B
  • D
    Only C
Answer
Correct option: B.
Only D
(B) Only C
Explanation:
Sale of household (personal furniture) furniture for Rs. 5,000 will not be recorded in his book.
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MCQ 151 Mark
Which stakeholder would be most interested in the earning capacity of a business firm?
  • A
    Government and other
  • B
    Customers regulators
  • ✓
    Investors
  • D
    Suppliers
Answer
Correct option: C.
Investors
(C) Investors
Explanation:
Investors invest money in the business so they are interested in the return of the business so that they can invest money into business.
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MCQ 161 Mark
Pay-in-slip is a
  • A
    Document drawn upon a
  • B
    Both of these specified banker and payable on demand
  • ✓
    Source document for having
  • D
    Document containing account deposits made in the bank detail
Answer
Correct option: C.
Source document for having
(C) Source document for having deposits made in the bank
Explanation:
When a person wants to deposit cash or cheques in his bank account he customarily fills out a slip to show the number of his account, the date, and the details of the deposit. This works as a source document for the entity.
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MCQ 171 Mark
When cash is withdrawn by proprietor, what is its impact on accounting equation?
  • A
    Increase in assets, increase in
  • ✓
    Decrease in assets, decrease in capital capital
  • C
    Increase in assets, increase in
  • D
    Decrease in assets, decrease in liabilities liabilities
Answer
Correct option: B.
Decrease in assets, decrease in capital capital
(B) Decrease in assets, decrease in capital|
Explanation:
As drawings are made by the proprietor, it will reduce the capital as well as cash (asset).
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MCQ 181 Mark
Calculate the amount of cash if: other assets $($ Except Cash) $=$ Rs. 10,000 liabilities= Rs. 10,000 Total Capital= Rs. 5000
  • A
    Rs. 3000
  • B
    Rs. 1000
  • ✓
    Rs. 5000
  • D
    Rs. 10000
Answer
Correct option: C.
Rs. 5000
(C) Rs. 5000
Explanation:
Total Assets = Capital + liabilities
Total Assets $=5000+10000$
Total Assets $=$ Rs. 15000
Total Assets $=$ Other Assets + Cash
$15000=10,000+$ Cash
Cash $=15000-10000$
Cash =Rs. 5000
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MCQ 191 Mark
Sundry Creditors Account is a:
  • ✓
    Liability Account
  • B
    Asset account
  • C
    Capital Account
  • D
    Revenue Account
Answer
Correct option: A.
Liability Account
(A) Liability Account
Explanation:
Sundry Creditors are the trade payables who come under the current liability.
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MCQ 201 Mark
Assertion (A): Accounting is an art as it involves recording, classifying, summarising business transactions with a view to ascertain the net profit.
Reason (R): Accounting is a science since it is based on certain specified principles and accounting standards.
  • A
    Both $A$ and $R$ are true and $R$ is the correct explanation of $A$.
  • ✓
    Both A and R are true but R is not the correct explanation of A.
  • C
    A is true but $R$ is false.
  • D
    A is false but $R$ is true.
Answer
Correct option: B.
Both A and R are true but R is not the correct explanation of A.
(B) Both A and R are true but R is not the correct explanation of A .
Explanation:
Art is the technique of achieving some pre-determined objectives and accounting is also done with some pre-determined objectives.
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MCQ 211 Mark
The business documents which serves as the evidence of the business transactions are known as
  • A
    Notes
  • ✓
    Source documents
  • C
    First hand documents
  • D
    Bills
Answer
Correct option: B.
Source documents
(B) Source documents
Explanation:
Source documents
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