CBSE Class 11 (Commerce) Theory Base of Accounting — practice questions
66 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CBSE Class 11 (Commerce) Theory Base of Accounting in the app →Which concept treats a business as separate from its owner?Under the business entity concept, books are written from whose point of view?Which event can be recorded under the money measurement concept?In which units are transactions recorded in the books?What is a key limitation of the money measurement concept?Which concept assumes a firm will keep operating for a long time?A computer costing Rs 50,000 has a life of 5 years. Under going concern, what is charged to profit each year?Without the continuity assumption, the cost of an asset would be charged in which year?What is the span of time after which financial statements are prepared called?How long is the normal accounting period?Annual income statements are required by the Income Tax Act and which other Act?How often must companies listed on a stock exchange publish results?Which situation may need interim statements for a period other than twelve months?The cost concept requires assets to be recorded at which value?A building bought for Rs 2.5 crore now has a higher market value. How is it shown in later years?Why does historical cost bring objectivity to recording?Which concept is the foundation of accounting and basis for recording transactions?Ram starts a business by investing Rs 50,00,000. Which two items are affected?Goods worth Rs 10,00,000 are bought for cash. What is the effect?A machine worth Rs 30 lakh is bought on credit. What is the effect?Which is the fundamental accounting equation?A firm has assets of Rs 8,00,000 and liabilities of Rs 3,00,000. What is the capital?The dual aspect concept forms the core of which system?When is revenue regarded as realised?When are credit sales treated as revenue?Which of these is revenue from the use of a firm's resources by others?For a construction contract lasting 2 to 3 years, how is revenue treated as realised?Which concept says expenses must be set against revenues of the same period?When is an expense recognised under the matching concept?Salaries, rent and insurance are recognised on what basis?How is the depreciation of a fixed asset charged under matching?To work out profit for a year, which cost of goods is matched with sales?Which concept requires all material and relevant facts to be disclosed?Prescribed formats for company profit and loss account and balance sheet support which concept?Which regulator mandates complete disclosures by listed companies?Which concept needs the same accounting policies used from year to year?If depreciation methods differ between two years, what is lost?Does consistency prohibit a change in accounting policy?Conservatism, also called prudence, is based on which policy?How does conservatism treat expected gains and possible losses?Stock costing Rs 40,000 has a market value of Rs 35,000. At what value is closing stock shown?Which is an application of the conservatism concept?Overstating profits may lead to what harmful result?Deliberately understating asset values under conservatism creates what?When is a fact considered material?Under materiality, how is a small purchase of pencils and erasers treated?Which is a material fact to be disclosed in the statements?Which concept requires entries to be supported by verifiable vouchers?A credit purchase of materials is supported by which documents?Which accounting system records the two-fold effect of every transaction?What basic rule does double entry follow?What helps check arithmetic accuracy of records in double entry?How is the single entry system described?Under the cash basis, office rent for December 2014 paid in January 2015 is recorded when?Under the accrual basis, when is a January credit sale recorded?Which basis of accounting is incompatible with the matching principle?Which body issues accounting standards in India?What is the main objective of accounting standards?GST is a tax based on which principle?Who ultimately bears the burden of GST?Taxes collected under CGST form the revenue of whom?Goods moved from Madhya Pradesh to Rajasthan attract which GST?Which GST component also covers imports of goods and services?Which existing tax was subsumed under CGST?What do Generally Accepted Accounting Principles aim to bring?In accounting, what does the term 'convention' connote?