MCQ Chapter 10 Accountancy Class 11 Maharashtra Board Single Entry System 1. The value of capital is obtained by subtracting liabilities from:DrawingsAssetsExpensesIncomesQuestion 1 of 192. Which of the following items is NOT deducted from profit in Statement of Profit or Loss?Interest on CapitalBad DebtsPrepaid ExpensesDepreciationQuestion 2 of 193. Who defined Single Entry as a method that ignores the two-fold aspect of transactions?CarterKohlerSpicerAndersonQuestion 3 of 194. What is the nature of the Statement of Affairs under Single Entry System?It is a Trial BalanceIt is a Balance SheetIt is an incomplete LedgerIt is a Statement of CashQuestion 4 of 195. How are assets and liabilities shown in the Statement of Affairs?Liabilities on right, Assets on leftOnly Assets are shownAssets on right, Liabilities on leftOnly Liabilities are shownQuestion 5 of 196. What is the impact of Undervaluation of Assets in Statement of Profit or Loss?It is deductedIt is addedIt is ignoredIt is transferred to liabilitiesQuestion 6 of 197. What is done when there is overvaluation of liabilities?The amount is ignoredIt is deductedIt is addedIt is treated as capitalQuestion 7 of 198. Which is considered as an expense in Profit or Loss statement?Interest on DrawingsInterest on CapitalPrepaid ExpensesOvervaluation of LiabilitiesQuestion 8 of 199. What will be the effect of Outstanding Expenses on the Statement of Profit or Loss?It will be addedIt will be ignoredIt will be deductedIt will be capitalizedQuestion 9 of 1910. Under Single Entry System, which account is not maintained?Cash AccountPersonal AccountReal AccountDebtors AccountQuestion 10 of 1911. Which of the following is considered income in the Statement of Profit or Loss?Interest on LoanInterest on DrawingsInterest on CapitalOutstanding ExpensesQuestion 11 of 1912. What does the term "Additional Capital" represent in the context of Single Entry System?Loan taken by the businessRevenue earnedOwner's new investment during the yearUnrecorded incomeQuestion 12 of 1913. What happens when assets are overvalued in the books?Profit is understatedCapital is reducedProfit is overstatedNo effectQuestion 13 of 1914. What type of business usually follows the Single Entry System?Large CorporationGovernment OfficeSmall TradersPartnership FirmsQuestion 14 of 1915. Which of the following is a feature of Single Entry System?It follows accounting standardsIt records transactions with dual effectIt is less expensiveIt verifies arithmetical accuracyQuestion 15 of 1916. The effect of Prepaid Expenses in Statement of Profit or Loss is:Deducted from ProfitAdded to ProfitIgnoredShown as LiabilityQuestion 16 of 1917. Which of the following is NOT a limitation of Single Entry System?Incomplete recordsNo Trial BalanceReliable financial resultsDifficulty in detecting errorsQuestion 17 of 1918. What is the formula for calculating Net Profit using capital comparison?Opening Capital + Drawings – Closing CapitalClosing Capital + Drawings – Additional Capital – Opening CapitalClosing Capital – Opening Capital + Additional CapitalOpening Capital – Closing Capital + DrawingsQuestion 18 of 1919. When liabilities are undervalued, the undervaluation amount is:Added to profitDeducted from profitIgnoredAdded to capitalQuestion 19 of 19 Loading...
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