CBSE Class 11 Accountancy Chapter 2 Theory Base of Accounting MCQs

Accountancy Class 11 Theory Base of Accounting MCQs: There are three main streams in higher-secondary classes, and they follow the syllabus prescribed by the Central Board of Secondary Education (CBSE). Students give the board exams in class 12, but a strong base in class 11 is necessary to succeed in the exams.

Accountancy is a main subject of the commerce stream and introduces students to the processing and recording of economic data. Accountancy is a difficult subject, and most students struggle with it. 

However, it’s essential to learn if you want to pursue a career in commerce. A great way of mastering it is through practice, and accountancy multiple choice questions can provide you with the necessary practice to help you better grasp the concepts.

Theory Base of Accounting is the second chapter of the class 11 accountancy syllabus and also one of the most important. Consistent practice, reading and solving different types of questions like MCQs can improve your learning immensely. You can check out the MCQs for CBSE Class 11 Accountancy Chapter 2 Theory Base of Accounting below.

Related: CBSE Class 11 Accountancy Syllabus 2024

MCQs for CBSE Class 11 Accountancy Chapter 2 Theory Base of Accounting

Question 1: In India, the accounting standard board was set up in the year:

(a) 1972

(b) 1977

(c) 1956

(d) 1932

Question 2: Meaning of credibility of going concern is:

(a) Closing of business

(b) Opening of business

(c) Continuing of business

(d) None of these.

Question 3: A concept that a business enterprise will not be sold or liquidated in the near future is known as :

(a) Going concern

(b) Economic entity

(c) Monetary unit

(d) None of the above

Question 4: The primary qualities that make accounting information useful for decision making are:

(a) Relevance and freedom from bias

(b) Reliability and comparability

(c) Comparability and consistency

(d) None of the above

Question 5: The sum of Liabilities and Capital is:

(a) Expense

(b) Income

(c) Drawings

(d) Assets

Question 6: During a lifetime of an entity, accounting produces financial statements in accordance with which basic accounting concept?

(a) Conservation.

(b) Matching

(c) Accounting period

(d) None of the above

Question 7: The basic accounting postulates are denoted by:

(a) Concepts

(b) Bookkeeping

(c) Accounting standards

(d) None of the above

Question 8: M/s Future Ltd. Has invested Rs. 10,000 in the shares of Relicam Industries Ltd. Current market value of these shares is Rs. 10,500. Accountant of Future Ltd. Wants to show Rs. 10,500 as value of investment in the books of accounts, which accounting convention restricts him from doing so?

(a) Full disclosure

(b) Consistency

(c) Conservatism

(d) Materiality

Question 9: The trading and profit and loss account is prepared under which attribute of accounting:

(a) Summarising

(b) Recording

(c) Classifying

(d) Analysis and Interpretation

Question 10: IFRS (International Financial Reporting Standards) are based on:

(a) Fair value

(b) Historical cost

(c) Both historical cost and fair value

(d) None of the above

Also Read: CBSE Class 11 Syllabus 2023-2024: Download Class 11th Syllabus PDF