CBSE Class 11 Accountancy Chapter 1 Introduction to Accounting MCQs

Accountancy Class 11 Introduction to Accounting MCQs: There are three main streams in higher-secondary grades and follow the curriculum 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 core subject of the commerce stream and introduces students to the processing of economic and business data. Accountancy is a challenging subject, and most students struggle with it. However, it’s essential to learn if you wish to pursue a career in commerce. A good way of mastering it is through practice and accountancy multiple choice questions can help you better grasp the concepts. 

Introduction to Accounting is the first chapter of the class 11 accountancy syllabus and one of the most important as well. Constant practice, reading and solving different types of questions like MCQs can aid your learning immensely. You can check out the MCQs for CBSE Class 11 Accountancy Chapter 1 Introduction to Accounting below.

Related: CBSE Class 11 Accountancy Syllabus 2024

MCQs for CBSE Class 11 Accountancy Chapter 1 Introduction to Accounting

Question 1:

Which of the following best defines accounting?

a) The process of selling goods and services to customers

b) The process of recording, classifying, and summarizing financial transactions

c) The process of advertising products to increase sales

d) The process of managing human resources in a company

Answer: b) The process of recording, classifying, and summarizing financial transactions

Question 2: Which is the last step of accounting as a process of information?

a) Recording of data in the books of accounts

b) Preparation of summaries in the form of financial statements

c) Communication of information

d) Analysis and interpretation of information

Answer: c) Communication of information

Question 3: The art of recording all business transactions in a systematic manner in a set of books is called

a) Accounting

b) Bookkeeping

c) Ledger

d) None of these

Answer: b) Bookkeeping

Question 4: Which qualitative characteristics of accounting information is reflected when

accounting information is clearly presented?

a) Understandability

b) Relevance

c) Comparability

d) Reliability

Answer: a) Understandability

Question 5: Use of common unit of measurement and common format of reporting promotes;

a) Comparability

b) Understandability

c) Relevance

d) Reliability

Answer: a) Comparability

Question 6: Which accounting concept states that all financial transactions should be recorded in the books of accounts and supported by verifiable evidence?

a) Cost Concept

b) Money Measurement Concept

c) Conservatism Concept

d) Verifiability Concept

Answer: d) Verifiability Concept

Question 7: If a trial balance totals do not agree, the difference must be entered in

a) Profit and Loss Account

b) Nominal Account

c) Capital Account

d) Suspense Account

Answer: d) Suspense Account

Question 8: The paper containing the evidence of payment is called

a) Debit voucher

b) Debit note

c) Credit note

d) Credit voucher

Answer: a) Debit voucher

Question 9: Long term assets without any physical existence but, possessing a value are called

a) Intangible assets

b) Fixed assets

c) Current assets

d) Investments

Answer: a) Intangible assets

Question 10: The person, firm, or institution who does not pay the price in cash for the goods purchased or the services received is called

(a) Creditor

(b) Proprietor

(c) Debtor

(d) None of these

Answer: (c) Debtor

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

Also Check: CAT 2023 Notification