CBSE Questions for Class 11 Commerce Accountancy Financial Statements 1 Quiz 1 - MCQExams.com

Cost of goods sold is calculated by which of the following:
  • $$Opening\ stock + Purchases + Direct\ expenses - Closing\ stock$$
  • $$Opening\ stock + Purchases + Direct\ expenses + Closing\ stock$$
  • $$Purchases + Direct\ expenses$$
  • $$Sales - Net\ profit$$
Closing stock of the previous year becomes the opening stock of the current year.
  • True
  • False
A purchased goods costing Rs 42,B sold goods costing Rs 40,000 at Rs 50,Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over will be ____________.
  • Rs 3,125
  • Rs 2,500
  • Rs 3,000
  • None of these
Type of bonds that are issued by foreign governments or foreign corporations are classified as ______________.
  • zero risk bonds
  • zero bonds
  • foreign bonds
  • government bonds
Bond call provision that is not practiced even after several years of issuance is classified as ______________.
  • original provision
  • deferred call
  • deferred provision
  • permanent provision
Goods purchased Rs 1,00,Sales Rs 90,Margin 20% on cost. Closing Stock = ?
  • 12,000
  • 10,000
  • 25,000
  • 28,000
Journal entry for transfer of Purchases is -
   Trading A/c   Dr. 
          To Purchases A/c
  • True
  • False
Journal entry for transfer of Purchase return is -
       Purchase return A/c   Dr.
                 To Trading A/c
  • True
  • False
Which of the following account is the odd one?
  • Office furniture & equipment
  • freehold land & buildings
  • Stock of materials
  • Plant & machinery
Carriage inward means the transport expenses incurred to carry the goods purchased by the firm.
  • True
  • False
Goods destroyed by fire should be credited to______.
  • Purchases account
  • Sales account
  • Loss of goods by fire account
  • Insurance account
If there is a prize fund and prizes are awarded, expenses and income are transferred to ___________.
  • Income and Expenditure Account
  • Assets side of the Balance Sheet
  • The Liabilities side of the Balance Sheet
  • Trading Account
Donation received for a specific purpose should _________________.
  • Be credited to a separate account and shown on the liabilities side of the balance sheet
  • Be credited to income and expenditure account
  • Not be recorded at all
  • Be debited to income and expenditure account
Which one of the following is an example of an intangible asset?
  • Preliminary expenses
  • Discount on issue of debentures
  • Investments
  • Copyrights
Provision for bad debts is calculated on __________.
  • creditors
  • sales
  • purchases
  • debtors
Which of the following accounts have only credit balance?
  • Accounts payable account
  • Salaries outstanding account
  • Reserve fund account
  • All of the above accounts
__________ are costs which have been applied against revenue of particular accounting period.
  • Expenses
  • Income
  • Loss
  • None of these
Wages paid to workers must be debited to _________ account.
  • Wages
  • Machinery
  • Factory expenses
  • Office expenses
The balance sheet is a __________ of the assets, liabilities and capital of concern as on particular date.
  • Statement
  • Document
  • Picture
  • Balance
The take over of a company in which most of the purchase price is paid with borrowed money is referred to as __________.
  • Hostile takeover
  • Illegal takeover
  • Leveraged buy-out
  • Management buy-out
Balance Sheet is a statement of ________.
  • Assets
  • Liabilities
  • Capital
  • All of the above
Legacies are generally __________.
  • capitalized and taken to balance sheet
  • treated as income
  • treated as expenditure
  • treated as other incomes
Which financial statement represents the accounting equation:
ASSETS = LIABILITIES + OWNER'S EQUITY?
  • Income Statement
  • Cash Flow Statement
  • Balance Sheet
  • Fund Flow Statement
Balance sheet is a(n) ____.
  • Statement
  • Account
  • Ledger
  • Book
Investment of X company , profit in shares of other company PQR Pvt. Ltd are recorded in ________
  • Asset side of balance sheet
  • Liability side of balance sheet
  • Profit & loss a/c
  • Not recorded in balance sheet
True & fair profit/loss of a company is known by _____________.
  • preparing trial balance
  • preparing respective ledger of account
  • preparing trading account
  • preparing trading and profit & loss account
Which of the following are current assets?
  • Bank loan for three years.
  • Account receivable.
  • Long-term investments.
  • Debentures sinking fund investments.
If the operating expenses exceed gross profit, the excess is referred to as ______________.
  • Operating income
  • Operating loss
  • Non-operating expenses
  • Non-operating income
Income tax paid by a sole proprietor on his business income should be ____________.
  • Debited to Trading Account
  • Debited to Profit and Loss account
  • Deducted from Capital account in the Balance Sheet
  • None of the Above
'Bank over draft' should be classified as ____________.
  • Current Asset
  • Current Liability
  • Regular Asset
  • Intangible Asset
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