THE HOLY ANGELS' ENGLISH ACADEMY
PRACTICE SET-4
Class 11 - Accountancy
Time Allowed: 1 hour and 30 minutes Maximum Marks: 40
General Instructions:
All questions are compulsory.
1. ________ need the information to form policies at the macro level and for providing subsidies. [1]
a) Management b) Government and its agencies
c) Tax authorities d) Competitors
2. Assertion (A): Qualitative aspects of the business unit are completely ignored from the books while preparing [1]
financial statements.
Reason (R): Window dressing refers to the practice of manipulating accounts so as to conceal vital facts, so that
the financial statements may disclose a more favourable position than the actual position.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
c) A is true but R is false. d) A is false but R is true.
3. Which qualitative characteristic of accounting information is reflected when accounting information is clearly [1]
presented?
a) Comparability b) Relevance
c) Reliability d) Understandability
4. Accounting is a means to determine the current worth of a business enterprise on the basis of its profit-earning [1]
capacity. The given statement highlights which of the role of accounting?
a) As a historical record b) As a language
c) As an information system d) As current economic policy
5. Out of the following assets which one is not an intangible asset? [1]
a) Patents b) Trademark
c) Goodwill d) Investments
6. The unsold goods left at the end of the year is called: [1]
a) Opening stock b) Assets
c) Closing stock d) Drawing
7. Which of the following is the Capital expenditure? [1]
a) Repair expenses of building b) Wages paid for construction of building
c) Wages paid for cleaning of building d) Advertisement Expenses
8. Match the following: [1]
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(a) Stock in the beginning of year. (i) Loss.
(b) Computer Software. (ii) Acrued income.
(c) Expenses -Revenue. (iii) Opening stock.
(d) Income earned but not received. (iv) Intangible assets.
9. Which of the following methods of accounting is/are recognised by Companies Act, 2013? [1]
a) Can't be determined b) Both (Cash basis of accounting) and
(Accrual basis of accounting)
c) Cash basis of accounting d) Accrual basis of accounting
10. Assertion (A): Second step in the accounting process is the preparation of Trial Balance. [1]
Reason (R): A trial balance is a statement, prepared with the debit and credit balances of ledger accounts to
check the arithmetical accuracy of accounts.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
c) A is true but R is false. d) A is false but R is true.
11. As per the law, which of the following is the correct accounting period? [1]
a) 1st April to 31st March b) 1st April to 31st December
c) 1st January to 31st December d) Both 1st April to 31st March and 1st
January to 31st December
12. According to the principle of prudence, [1]
a) all of these b) depreciation is charged on assets
c) provision for bad debts is created d) outstanding expenses are accounted for
13. Match the following options are [1]
a. Historical Cost i. revenue is considered as the income earned on the date
b. Revenue Realization ii. assets are recorded at the price paid to acquire them
c. Full Disclosure iii. disclose fully and completely all the significant information
a) a - (iii), b - (ii), c - (i) b) a - (ii), b - (i), c (iii)
c) a - (ii), b - (iii), c - (i) d) a - (i), b - (ii), c - (iii)
14. According to the Money Measurement Concept: [1]
a. all transactions and events are recorded.
b. all transactions and events which can be estimated in money terms are recorded in the books of account.
c. all transactions and events which can be measured in money terms are recorded in the books of account.
d. None of these
a) Statement (d) is correct b) Statement (a) is correct
c) Statement (b) is correct d) Statement (c) is correct
15. Assertion (A): According to Business Entity Concept, business is treated as a unit separate and distinct from its [1]
owners.
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Reason (R): Business Entity Concept does not apply to a sole proprietorship firm.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
c) A is true but R is false. d) A is false but R is true.
16. Assertion (A): As per matching concept all costs incurred during a particular period should be charged to [1]
revenue of that period.
Reason (R): It is because of matching concept that full cost of the asset is not treated as an expense in the year
of its purchase itself rather it is spread over its useful life.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
c) A is true but R is false. d) A is false but R is true.
17. Adopting of Accounting Standards is mandatory for: [1]
a) All of these b) Partnership Firms
c) Sole Traders d) Companies
18. Assertion (A): Accounting Standards are mandatory for Sole Proprietorship Firms, Partnership Firms and [1]
Companies.
Reason (R): They ensure uniformity in the preparation and presentation of financial statements.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
c) A is true but R is false. d) A is false but R is true.
19. Assertion (A): Accounting standards are being converged with international financial Reporting standards. [1]
Reason (R): To make the economy more dynamic, competitive and boost confidence in international circuit.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
c) A is true but R is false. d) A is false but R is true.
20. An increase in one asset is accompanied by: [1]
a) increase in a liability b) decrease in another asset
c) increase in capital d) All of these
21. Explain any three objectives of accounting. [3]
22. Explain any four qualitative characteristics of accounting information. [3]
23. Mr. Krishan submits you the following particulars for the year ending 31st March, 2023: [4]
Cash Sales 22,00,000
Credit Sales 6,00,000
Cash Purchases 10,00,000
Credit Purchases 7,50,000
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Expenses paid (including ₹ 15,000 paid in advance) 4,00,000
Expenses due but not yet paid 75,000
Income received 2,00,000
Income received in advance (included in ₹ 2,00,000) 10,000
Income due but not yet received 28,000
Determine his net profit or loss if he adopts
i. Cash Basis of Accounting, and
ii. Accrual Basis of Accounting.
24. Explain the following: [4]
i. Bills Receivable
ii. Bills Payable
iii. Income
25. Record necessary Journal entries in the books of Suman of Bihar assuming CGST @ 9% and SGST @ 9%: [6]
i. Bought goods ₹ 3,50,000 from Jharkhand.
ii. Sold goods for ₹ 2,00,000 Uttar Pradesh.
iii. Sold goods for ₹ 4,00,000 locally.
iv. Paid Insurance premium ₹ 30,000.
v. Bought furniture for office ₹ 50,000.
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