MCQ Chapter 1 Accountancy Class 11 Maharashtra Board Introduction to Book- Keeping and Accountancy 1. Which accounting concept separates the business from its owner?Cost ConceptBusiness EntityMoney MeasurementConsistencyQuestion 1 of 202. What does the Money Measurement concept limit accounting to?Non-monetary transactionsTransactions expressible in moneyEmployee performance recordsBarter transactionsQuestion 2 of 203. How are assets recorded under the Cost Concept?At market valueAt historical costAt fair valueAt replacement costQuestion 3 of 204. Which concept promotes consistent application of accounting policies?ConservatismGoing ConcernConsistencyRealizationQuestion 4 of 205. What does the Conservatism concept advise?Anticipate profitsProvide for all possible lossesIgnore expensesOverstate assetsQuestion 5 of 206. Which concept assumes a business will operate indefinitely?AccrualGoing ConcernDual AspectMaterialityQuestion 6 of 207. Under the Realization concept, when is revenue recognized?When goods are orderedWhen payment is receivedWhen goods are sold or services renderedWhen expenses are paidQuestion 7 of 208. What does the Accrual concept focus on?Cash-based transactions onlyRevenues and expenses when earned or incurredMarket value transactionsNon-monetary eventsQuestion 8 of 209. Which concept underpins the double-entry system?Dual AspectDisclosureMatchingConservatismQuestion 9 of 2010. What is the goal of the Disclosure concept?To conceal financial dataTo disclose all material information honestlyTo limit financial reportingTo focus on non-monetary dataQuestion 10 of 2011. What does the Materiality convention emphasize?Disclosing all transactionsDisclosing only material items influencing decisionsDisclosing non-monetary eventsDisclosing cash transactions onlyQuestion 11 of 2012. What does the Matching concept aim to achieve?Match assets with liabilitiesMatch revenues with expenses of the same periodMatch cash inflows with outflowsMatch profits with lossesQuestion 12 of 2013. What is the purpose of Accounting Standards (AS)?To standardize accounting for consistency and comparabilityTo eliminate financial reportingTo complicate accounting processesTo focus on non-financial recordsQuestion 13 of 2014. Who issues International Financial Reporting Standards (IFRS)?Institute of Chartered Accountants of IndiaGovernment of IndiaInternational Accounting Standard BoardAccounting Standards BoardQuestion 14 of 2015. When was India’s Accounting Standards Board (ASB) established?April 1, 1991April 21, 1977April 1, 1995April 1, 2001Question 15 of 2016. What does AS-1 mandate about accounting policies?They should be confidentialThey should be disclosed in financial statementsThey should change annuallyThey apply only to fixed assetsQuestion 16 of 2017. According to AS-2, how are inventories valued?At fair valueAt market valueAt lower of historical cost and net realizable costAt replacement costQuestion 17 of 2018. What does AS-3 require for financial reporting?Valuation of inventoriesPreparation of a cash flow statementAccounting for taxesDepreciation allocationQuestion 18 of 2019. How should depreciation be handled per AS-6?Allocated randomlyAllocated systematically over the asset’s useful lifeIgnored until asset disposalBased on market valueQuestion 19 of 2020. What does AS-8 say about research and development costs?Capitalize themDefer them for future periodsCharge them as an expense when incurredIgnore themQuestion 20 of 20 Loading...
Leave a Reply