Accounting Test for Class 11 PDF

Full Accounting Exam (80 Marks) Section A: Theory (40 Marks) Answer the following questions. Each question carries 10 marks. 1. Define accounting and explain its objectives. (10 Marks) 2. Explain the accounting concepts and conventions that form the basis of accounting. (10 Marks) 3. What is th...

Full Accounting Exam (80 Marks) Section A: Theory (40 Marks) Answer the following questions. Each question carries 10 marks. 1. Define accounting and explain its objectives. (10 Marks) 2. Explain the accounting concepts and conventions that form the basis of accounting. (10 Marks) 3. What is the difference between cash basis and accrual basis of accounting? Explain with examples. (10 Marks) 4. What is the journal? Explain the format of the journal and how transactions are recorded in the journal. (10 Marks) Section B: MCQs (20 Marks) Each question carries 1 mark. Choose the correct answer. 1. Accounting is primarily concerned with: a) Forecasting the future expenses b) Recording, classifying, and summarizing financial transactions c) Auditing of business activities d) None of the above 2. The accounting equation is: a) Assets = Liabilities + Capital b) Assets = Liabilities - Capital c) Liabilities = Assets - Capital d) Capital = Assets - Liabilities 3. A credit balance in the bank column of the cash book indicates: a) Cash in hand b) Bank overdraft c) Cash at bank d) None of the above 4. What is the full form of GAAP? a) General Accounting Association Principles b) Generally Accepted Accounting Principles c) General Audit Accounting Practice d) Government Accepted Accounting Principles 5. Which principle ensures expenses are matched with revenues? a) Consistency principle b) Matching principle c) Conservatism principle d) Prudence principle 6. The journal is also known as: a) Book of accounts b) Ledger c) Subsidiary book d) Day book 7. Income received in advance is treated as: a) Liability b) Asset c) Revenue d) Expense 8. Outstanding expenses are shown in: a) Trading Account b) Profit and Loss Account c) Balance Sheet d) Cash Flow Statement 9. The concept that assumes business will continue for an indefinite period is: a) Periodicity concept b) Going concern concept c) Accrual concept d) Business entity concept 10. Closing stock appears in the: a) Profit & Loss Account b) Balance Sheet c) Both a) and b) d) Trading Account 11. Which of the following is not a type of error in accounting? a) Error of omission b) Error of commission c) Error of compromise d) Error of principle 12. Which of the following does not affect trial balance? a) Compensating error b) Error of omission c) Error of principle d) Both b) and c) 13. Revenue expenditure is: a) Recurring in nature b) Non-recurring in nature c) Recorded as an asset d) Long-term in nature 14. A provision for doubtful debts is an example of: a) Real account b) Nominal account c) Liability account d) Contra account 15. Which principle requires that revenue should be recognized when it is earned? a) Realization principle b) Accrual principle c) Matching principle d) Conservatism principle Section C: Practical Questions (20 Marks) 1. Journalize the following transactions: (5 Marks) Purchased furniture for ₹5,000. Sold goods for ₹20,000 on credit. Paid electricity bill ₹1,000. Received commission ₹500. 2. Prepare a Cash Book with Cash and Bank Columns for the following transactions: (5 Marks) Cash balance on hand ₹10,000. Deposited ₹5,000 in the bank. Paid rent by cheque ₹2,000. Withdrawn ₹1,000 for office use. 3. Prepare a Balance Sheet from the following balances: (10 Marks) Capital ₹2,00,000 Drawings ₹10,000 Cash ₹20,000 Bank overdraft ₹15,000 Debtors ₹50,000 Creditors ₹30,000 Machinery ₹1,00,000 Furniture ₹20,000 Stock ₹40,000 Loan from bank ₹50,000 Outstanding rent ₹5,000