Please refer to Chapter 10 Financial Statements II MCQ Class 11 Accountancy with answers below. These multiple-choice questions have been prepared based on the latest NCERT book for Class 11 Accountancy. Students should refer to MCQ Questions for Class 11 Accountancy with Answers to score more marks in Grade 11 Accountancy exams. Students should read the chapter Financial Statements II and then attempt the following objective questions.

MCQ Questions Class 11 Accountancy Chapter 10 Financial Statements II

Financial Statements II MCQ Class 11 Accountancy provided below covers all important topics given in this chapter. These MCQs will help you to properly prepare for exams.

Question. r range in the order of liquidity in the B/S—Cash, Building Goodwill, Debtors, Machine.
(a) Debtors Cash, Building Goodwill, Machine.
(b) Cash, Goodwill, Debtors, Machine. Building
(c) Cash, Building Goodwill, Debtors, Cash Machine.
(d) Cash, Debtors, Machine. Building Goodwill.

Question. closing stock is entered in
(a) Trading account
(b) Balance sheet
(c) Both
(d) None of these.

Question. custom duty will go to
(a) Trading Cr
(b) Trading Dr
(c) Profit &Loss Dr
(d) Profit &Loss Cr.

Question. The financial statements consist of:
(a) Trial balance
(b) Profit and Loss account
(c) Balance sheet
(d) (a) & (c)
(e) (b) & (c)

Question. Trading Account discloses-
(a) Gross profit
(b) Net profit
(c) Net loss
(d) Gross profit or Gross loss

Question. The debentures to be redeemed within 12 months from the date of balance sheet is shown under
(a) short term borrowings
(b) long term borrowings
(c) other current liabilities
(d) long term liabilities

Question. Securities Premium Reserve is shown on the liabilities side in the Balance sheet under the head :
(a) Reserves and Surplus
(b) Current Liabilities
(c) Share Capital
(d) None of these

Question. An Annual Report is issued by a company to its:
(a) Directors
(b) Authors
(c) Shareholders
(d) Management

Question. Goodwill appears in a company’s balance sheet under
(a) Unamortised assets
(b) Non-current investments
(c) Intangible assets
(d) Tangible assets

Question. Financial statements disclose :
(a) Monetary information
(b) Qualitative information
(c) Non-monetary information
(d) All the above

Question. Patents and copyrights fall under the category of:
(a) Current Assets
(b) Liquid Assets
(c) Intangible Assets
(d) None of these

Question. The object of non – trading concerns-
(a) Social service
(b) Profit earning
(c) Both of these
(d) None of the above.

Question. Which of the following is recorded in income & expenditure account –
(a) Revenue items
(b) Capital items
(c) Revenue and capital items
(d) None of these.

Question. Which of the following is not required to be prepared under the Companies Act
(a) Statement of Profit and Loss
(b) Balance Sheet
(c) Report of Director’s and Auditor’s
(d) Funds Flow Statement

Question. Calls in Arrears appear in a Company’s Balance Sheet under ………………..
(a) Reserve & Surplus
(b) Shareholder’s Funds
(c) Contingent Liabilities
(d) Short-term Borrowings

Question. The reserve which is created for a particular (specific) purpose and which is a charge against revenue is called:
(a) Capital Reserve
(b) General Reserve
(c) Secret Reserve
(d) Specific Reserve

Question. The term financial statements includes :
(a) Statement of Profit & Loss
(b) Balance Sheet
(c) Statement of Profit & Loss and Balance Sheet
(d) None of these

Question. The debentures to be redeemed within 12 months from the date of balance sheet is shown under
(a) short term borrowings
(b) long term borrowings
(c) other current liabilities
(d) long term liabilities

Question. Which of the following is not required to be prepared under companies act
(a) Statement of Profit and Loss
(b) Balanc Sheet
(c) Cash Flow Statement
(d) Funds Flow Statement

Question. Which one of the following tangible fixed assets would not normally be depreciated?
(a) Buildings
(b) Machinery
(c) Land
(d) Equipment

Question. A financial statement to show what a business owns and owes at a particular point in time?
(a) A cash flow statement
(b) The bank statement for the business
(c) A balance sheet
(d) A statement of retained earnings

Question. A company has, by the end of its financial period, paid out more Tax than it has to pay. How would this be shown in the balance sheet?
(a) As an accrual Revenue
(b) As a Prepaid within current assets
(c) As a ‘creditor due within one year’
(d) As a creditor due after more than one year’

Question. If the insurance premium paid Rs. 1,000 and prepaid insurance Rs. 300. The amount of insurance premium shown in profit and loss account will be
(a) Rs. 1,300
(b) Rs. 1,000
(c) Rs. 300
(d) Rs. 700

Question. Which of the following is the largest single expense of most merchandising firms?
(a) Cost of goods sold
(b) Rent Expense
(c) Amortization Expense
(d) Salaries Expense

Question. What is the difference between the total incoming and the total outgoings?
(a) Net cash flow
(b) Cash inflow
(c) Direct cost
(d) Indirect cost

Question. How is the balance sheet linked to the other financial statements?
(a) The beginning retained earnings balance on the statement of retained earnings becomes the amount of retained earnings reported on the balance sheet
(b) Retained earnings is added to total assets and reported on the balance sheet
(c) Net income increases retained earnings on the statement of retained earnings, which ultimately increases retained earnings on the balance sheet
(d) There is no link between the balance sheet and the other statements

Question. If the rent of one month is still to be paid the adjustment entry will be
(a) Debit outstanding rent account and Credit rent account.
(b) Debit profit and loss account and Credit rent account.
(c) Debit rent account and Credit profit and loss account.
(d) Debit rent account and Credit outstanding rent account.

Fill In The Blanks

Question. ………………….. type of assets comes first in Assets side of Balance sheet as per liquidity order.

Question. Closing stock is valued at ………………… or …………… whichever is lower.

Question. If opening stock is Rs. 4,000, purchases Rs. 20,000, direct expenses Rs. 3,000. Rent paid Rs. 6,000, closing stock Rs. 7,000. The amount of cost of goods sold is Rs……….

Question. Closing stock appearing in Trial balance is transferred to …………….. .

Question. While making final accounts, prepaid expenses is subtracted from respective expenses in order to show……………. year expenses.

Question. Motor car of Rs. 1,00,000 was purchased on 1st October, 2018. Rate of Depreciation is 10%. Amount of depreciation to be shown in profit & Loss Account is Rs.…….

Question. Withdrawal of Goods by proprietor will be …………………. from Purchases in trading account.

Question. Debtors of Rs. 8,60,000; Provision is to be created for doubtful debts @10%. Amount of provision in profit & Loss account will be Rs.……………….. .

Question. Goods lost by theft will be deducted from ………………. .

Question. Gross profit is Rs. 1,50,000. Selling expenses Rs. 10,000, commission paid Rs. 5,000, office expenses Rs. 20,000. Operating profit will be Rs ………………… .

Question. Carriage on sales is shown in ……………..Account.

Question. Indirect Expenses are entered in …………….. account.

Question. Such Expenses which are paid in current year but are related to next year are called ……………. expenses.

Question. Balance sheet is a ………………

Question. When cost of goods sold is deducted from net sales, we get………………..

Question . While making a provision for possible bad debts or for doubtful debts, we ………………. Reserves Debts Account.

Question. Give an example of current Liability………………..

Question. Expenses related to the current accounting period but have not been paid are known as ……………….

True/False

Question. The balance of salary in trial balance was Rs 6,600. The unpaid salary was of one month. The amount of unpaid salary to be shown in balance sheet is Rs 660 .

Question. If closing and opening stock is Rs. 60,000 each. Purchases are Rs. 1,40,000, manufacturing expenses are Rs. 40,000 and sales are 2 50,000 in that case gross profit is 70,000.

Question. Credit sale for the year ended was 2,52,000. Cost of goods sold was Rs. 2,80,000 and gross profit as shown by trading account was 1,12,000. The amount of cash sales will be 1,40,000.

Question. Legal charges, general expenses, dividend on shares, miscellaneous receipts are the part of trading a/c.

Question. The value of gross profit will be 12,500 if the value of purchases is 2,00,000, returns is 5000, and 2/3rd of the goods are sold for 1,52,500.

Question. Cash purchases is Rs. 50,000 . credit purchases is Rs. 30000. Returns outward is Rs.5,000. closing stock was Rs. 20,000 more than that of opening stock. The value of adjusted purchases will be 1,30,000.

Question. Net sales for year ended 31st march 2016 is. Rs 4,00,000 the rate of gross profit is 25% on sales the amount of gross profit is 1,00,000

Question. The credit balance of commission a/c in trial balance was Rs 10,000. The advance commission amounted to Rs. 1,500. The amount of commission to be credited to P&L a/c will be Rs 8,500.

Question. The value of gross profit is 2,40,000 and cost of goods sold is 9,60,000. The rate of gross profit is 25% on cost.

Question. The net profit is Rs. 55,000. Non operating expenses amounted to Rs 78,000 and non operating income is 10,000 the value of operating loss is 13,000.

Question. The net profit before charging depreciation was Rs 1,89,000. The amount of depreciation was Rs 19,000. The net profit after depreciation is Rs 2,08,000.

Question. Match the following expenses

Expenses	transferred to
1. Carriage inward	A. profit and loss A/c
2. Freight inward	B. Trading A/c
3. Carriage outward
4. Freight outward

Question. Match the following

1. Provision for bad and doubtful debts tear and wear	A. Fall in the value of fixed assets due to
2. Depreciation of the year	B. stock of goods remaining unsold at the end
3. Bad debts	C. provision against amount due from debtors
4. Closing stock	D. debtors which cannot be recovered.

Question. Purchase 75,000 ; wages 8,000 ; Sales 1,25,000 ; Salaries 25,000 ; rent of Building 13,000 ; Bad Debts 4,500 ; Commission received 5,000. On the basis of above information match the following:

1. Gross Profit	A. Rs.42500
2. Net Profit	B. Rs.42000

Question. Net sales Rs.8, 00,000; Gross Profit 20% on Sales On the basis of above information match the following:

1. Gross profit	A. 6,40,000
2. Cost of goods sold	B.1,60,000

Question. Rahul is a manager of a firm, who received the salary of Rs.5, 000 P.M in addition to a commission of 10% on net profit after charging such commission and salary. Profit for the year is Rs.6, 10,000 before charging such salary and commission. Bases on the above information match the following.

1. Commission	A. 60000
2. Salary	B. 50000

Question. Opening Stock Rs. 50,000; purchases Rs. 2,00,000; sales Rs. 1,00,000 ; profit @25% on Cost. Based on the above information match the following:

1. Profit	A. 80,000
2. COGS	B. 1,70,000
3. Closing Stock	C. 20,000

Question. Opening Stock Rs. 30,000; purchases Rs.2,10,000; Sales Rs.60,000; profit 33.33% on cost; goods lost by fire Rs. 10,000, Insurance claim of Rs. 6,000 has been accepted by insurance company. On the basis of above information match the following:

1. Profit	A. Rs.1, 85,000
2. COGs	B. Rs.15,000
3. Closing Stock	C. Rs.45,000

Question. Match the following equation with their respective Cost of goods sold

1. Opening stock Rs.18,000; Direct expenses Rs. 15,000; Net purchases :Rs.70,000; Closing stock Rs. 8,000	A.4,37,000
2. Opening stock Rs.60,000; Direct expenses Rs. 40,000; Net purchases :Rs.2,00,000; Closing stock Rs. 30,000	B.95,000
3. Opening stock Rs.65,000; Direct expenses Rs.45,000; Net purchases :Rs.3,45,000; Closing stock Rs. 18,000	C.2,70,000

Question. Match the following with their sales

1. COGS 60,000; GP 20%on sales	A.2,00,000
2. COGS 1,60,000; GP 25%on COGS	B 75,000
3. COGS 90,000; GP 20% on COGS	C. 1,08,000

Question. Match the following:

1. Matching principal	A. provision for doubtful debts is created
2. Conservatism	B. Profit and Loss A/c is made for full year
3. Accounting Period	C. Outstanding expenses are added in respective expense

Question. Match the following items with their treatment in accounts

Transaction	Treatment
1. Goods given as Charity	A. Deducted from purchases
2. Goods given as sample	B. Added to sales A/C
3. Goods given as gift to employees
4. Goods given as a gift to friend

Question. Match the following items with respective Gross Profit

1. Cost of goods sold Rs. 80000, G.P. is 20% on Sales	A. Rs. 15000
2. Sales- Rs. 70000, G.P. is 20% on Sales	B. Rs.20000
3. Cost of Goods sold Rs. 80000, G.P. is 20% on Cost	C. Rs. 14000
4. Sales – Rs. 90,000, G.P. is 20% on cost	D. Rs.16000

We hope you liked the above Financial Statements II MCQ Class 11 Accountancy. In case you have any questions please put them in the comments box below and our teachers will provide you a response.