CBSE Questions for Class 11 Commerce Accountancy Theory Base Of Accounting Quiz 4 - MCQExams.com

The concept which states that business operations will continue for ever is known as _____________.
  • Going Concern concept
  • Dual aspect concept
  • Realization concept
  • Cost concept
Money measurement concept implies that every business transaction must be recorded in common unit of measurement i.e. in terms of money only.
  • True
  • False
Transaction is ____________.
  • Buying and Selling of goods
  • Affect financial position of business
  • Measured in terms of money
  • All of the Above
What is conservatism?
  • Income is recorded when its earned
  • Provide for all losses
  • Will continue for a long time
  • Must disclose all material information
Capital is______ of the business. 
  • Asset
  • Liability
  • Property
  • Goodwill
An old car having a book value of Rs. 50,000 on 1st April 2013 and having market value of Rs. 10,000 as on 31st March 2014 is reported in the financial statement at Rs. 10,The company is following ____ method of valuation.
  • Historical cost
  • Present value
  • Realizable cost
  • Current cost
_________  is an accounting concept which suggests that business has separate identity from its owner.
  • Business entity
  • Dual aspect
  • Money measurement
  • Materiality
According to________ concept business shall go on for long time. 
  • Going concern
  • Consistency
  • Materiality
  • Dual aspects
______ is the amount invested by the owner of a business. 
  • Cash
  • Money
  • Asset
  • Capital
According to________ concept, every business transaction has two aspects. 
  • going concern
  • materiality
  • business entity
  • dual aspects
A concept on which double entry book keeping system is based  is ___________.
  • Cost concept
  • Dual aspect concept
  • Accrual concept
  • Realization concept
Period of time for which accounts of the business are prepared is _____________.
  • Financial year
  • Calendar year
  • Assessment  year
  • All of the above
Accounts must be honestly prepared and they must disclose all material information is known as______.
  • Disclosure Concept
  • Entity Concept
  • Cost Concept
  • Dual Aspect Concept
____________ is an accounting concept states that only monetary transactions are recorded in the books of accounts.
  • Dual aspect
  • Materiality
  • Money measurement
  • Conservatism
Name the accounting concept on the basis of which income statement is prepared ______________.
  • Realization concept
  • Matching concept
  • Accrual concept
  • Cost concept
According to______ concept, assets are recorded at a price paid to acquire them. 
  • Cost
  • Money measurement
  • Entity
  • Dual aspect
Drawings made by the businessman increases his capital. 
  • True
  • False
______ is the Accounting method that recognizes the impact of transactions on the financial statements in the time periods when revenue and expenses occurs.
  • Cash basis
  • Hybrid basis
  • Accrual basis
  • Double entry basis
According to__________ convention, while preparing planning anticipate losses. 
  • Materiality
  • Consistency
  • Conservatism
  • Disclosure
The double entry system is based on "dual aspect"  concept. 
  • True
  • False
According to_______ concept revenue is recognized when it is earned. 
  • Realisation
  • Accounting period
  • Accrual
  • Matching cost
Conservatism means to follow safe side. 
  • True
  • False
State true of false :
In Book - keeping & accountancy non- monetary transactions are also recorded. 
  • True
  • False
Personal transactions of proprietor are recorded in the books of account of business.
  • True
  • False
Every transaction has only one effect.
  • True
  • False
 Perpetual succession is explained by the concept of entity. 
  • True
  • False
Double entry system is very unscientific.
  • True
  • False
Book keeping records monetary transactions only. 
  • True
  • False
Choose the wrong statement.
  • Accounting is the language of business.
  • Transactions are recorded in qualitative terms only.
  • Accounting is the art of recording, classifying and summarizing.
  • Transactions and events of financial character are subject-matter of accounting.
The accounting system that affects at least two accounts is called __________ .
  • Single entry system
  • Double entry system
  • Double account system
  • Duplicate system of accounting
Double entry system is a scientific method of book keeping.
  • True
  • False
_______ is subject matter of Accounting.
  • Death of key executive of the business/company
  • Strike of workers
  • Payment of Rs.10,000 to bank in discharge of outstanding loan
  • Marriage of the daughter of the Managing Director of the Company
The system of recording of transactions based on dual aspect is called _________ .
  • Single entry
  • Cash entry
  • Double entry system
  • Double account system
Objective of Accounting Standards is __________________.
  • To help the Government in raising the taxes
  • To standardize the diverse accounting policies and practices
  • To make the account simple
  • None of the above
______ is the Accounting method that recognizes the impact of transactions on the financial statements in the time periods when cash is disbursed or received.
  • Cash basis
  • Hybrid basis
  • Accrual basis
  • Double entry basis
In India, Accounting Standards are issued by _______.
  • ICAI
  • ICSI
  • ICWAI
  • IDBI
Revenue is generally considered as realized ________.
  • At the time of agreement to sell
  • At the time of receipt of cash
  • At the time of sale
  • At the time of production of goods
Which of the following is one of the advantages of accounting standards?
  • To eliminate or reduce variation in accounting treatments.
  • To facilitate comparison of financial statements of different companies.
  • To make financial statements more informative.
  • All the above.
The accounting standards are issued for the purpose of____________.
  • Harmonizing accounting policies
  • Elimination of non-comparability between financial statements
  • For improving the reliability of financial statements
  • All of the above
Which of the following is one of the objectives of accounting standard?
  • To standardize diverse accounting practices and policies
  • To improve financial performance of business enterprises
  • To minimize tax liabilities
  • All the three
The disadvantage of accounting standard is _________.
  • It facilitates the comparison of non-comparable accounts
  • Sometime the principles of AS are against the tradition
  • It leads to rigidity and eliminates flexibility
  • It flouts the law of the land.
Generally Accepted accounting principles can be applied to the financial statements in which of the following ________.
  • Sole proprietor
  • Partnership firm
  • Corporate body
  • All the three
Select the correct statement.
  • Representative of political parties also is a member of ASB in India
  • Accounting standards issued by ICAI are mandatory in India
  • Accounting Standards are true copy of International Accounting Standards.
  • Accounting standard once issued cannot be withdrawn
_________ is an Accounting Convention.
  • Consistency
  • Accrual
  • Realization
  • Going Concern
________ is not an accounting convention.
  • Business entity
  • Disclosure
  • Conservatism
  • Materiality
The Accounting standards are mandatory for _________.
  • Charitable organization
  • Government departments
  • Companies
  • Central Government
Anticipate all losses and ignore anticipated profits is an application of _______ concept/convention.
  • Conservatism
  • Dual concept
  • Going concern
  • Materiality
The 'Revenue Recognition' principle refers to ________.
  • The process of matching of expenses and revenue
  • The process of identifying those transactions that result in an inflow of cash from customers
  • The earning process which gives rise to revenue realization
  • The process of determination of the income of enterprise.
Provision for doubtful debts is made because of ________.
  • Materiality
  • Prudence
  • Going concern
  • Accrual
Accounting policies followed by the companies are __________.
  • Different from year to year
  • Frequently changed as per the situation
  • The same as notes to accounts
  • Consistently followed from year to year
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