CBSE Accountancy Chapter 8 Financial Statements I Multiple Choice Questions

Financial Statements Class 11 Accountancy MCQs: Check here the detailed multiple choice questions of CBSE Class 11th Accountancy Chapter 8 Financial Statements I of different difficulty levels.

Accountancy Class 11 Financial Statements I MCQs: The higher secondary classes have three main streams namely Humanities, Commerce and Science. They follow the syllabus prescribed by the Central Board of Secondary Education (CBSE). The board exams are conducted in Class 12, which are necessary to pass for all students. And to do that, your basics must be clear. And that is what makes class 11 important in a student’s life.

Accountancy is the main subject in the commerce stream and students are first introduced to it in class 11. It’s an analytical and often math-based subject that demands considerable critical thinking from students. There are various rules and formulas students have to learn and the best way to do that is by regular practice. The board exam consists of mcqs, short and long-answer questions.

Here we bring you financial statements class 11 mcq with answers. It’s the eighth chapter as per the Accountancy revised syllabus. Financial Statements I is one of the most important chapters in Accountancy and is a must-learn for all students. You can check out the Financial Statements 1 mcq questions for CBSE Class 11 Accountancy below.

Related: 

CBSE Class 11 Accountancy Syllabus 2024

CBSE Class 11 Syllabus 2023-2024: Download Class 11th  Syllabus PDF

Financial Statements MCQs for CBSE Class 11 Accountancy Chapter 8

Question 1: Pick the correct chronological order of ascertainment of the following profits from the profit and loss account:

(a) Operating Profit, Net Profit, Gross Profit

(b) Gross Profit, Operating Profit, Net Profit

(c) Operating Profit, Gross Profit, Net Profit

(d) Net Profit, Gross Profit, Operating Profit

Question 2: Which ratio or ratios measure the overall efficiency of the firm in managing its investment in assets and in generating a return to shareholders?

(a) Return on investment and return on equity

(b) Return on investment

(c) Total asset turnover and operating profit margin

(d) Gross profit margin and net profit margin

Question 3: What does an increasing collection period for accounts receivable suggest about a firm’s credit policy?

(a) The credit policy is too restrictive

(b) The firm is probably losing qualified customers

(c) The collection period has no relationship to a firm’s credit policy

(d) The credit policy may be too lenient

Question 4: Which of the following items is included in the adjustment of net income to obtain cash flow from operating activities?

(a) Depreciation expense for the period

(b) The amount by which equity income is recognised exceeds cash received

(c) The change in deferred taxes

(d) All of the above

Question 5: While calculating operating profit, which of the following are not taken into account?

(a) Normal transactions

(b) Abnormal items

(c) Expenses of a purely financial nature

(d) All of the above

Question 6: Goodwill is a-

(a) Current Asset

(b) Fixed Asset

(c) Fictitious Asset

(d) None of the above

Question 7: The financial statements consist of:

(a) Trial balance

(b) Profit and loss account

(c) Balance sheet

(d) (a) & (c)

(e) (b) & (c)

Question 8: The schedule of balances prepared from ledger accounts is knowns as:

(a) Balance Sheet

(b) Statement of Accounts

(c) Trial Balance

(d) Statement of Affairs

Question 9: A petition of ₹ 2,00,000 was lodged against a machinery with a book value of ₹ 2,50,000 that was destroyed in the company. The following is an example of an insurance claim that has been received:

(a) Capital Expenditure

(b) Revenue Receipt

(c) Revenue Expenditure

(d) Capital Receipt

Question 10: “Salaries and Wages” appearing in Trial Balance is shown:

(a) On the Debit Side of Trading account

(b) On the Debit Side of Profit and Loss account

(c) On the Liabilities Side of Balance Sheet

(d) On the Asset Side of Balance Sheet