Introduction to Accounting basic MCQs class 11th, 12th

Introduction to Accounting MCQs: In this blog post, we have written important multiple choice questions on basic accounting.

These basics MCQs are useful for classes 11th, 12th, and other competitive exams.

Introduction to Accounting basic MCQs

 1. Which is not a business transaction out of the following:

 Purchased goods for cash Rs.10,000

 Sold goods for cash Rs.5,000

 The owner spent Rs.200 for his lunch from his own pocket.

 The owner withdrew goods Rs.370 for his personal use.

2. Which of the following statements is not true

 Book-Keeping is concerned with the recording of business transactions in a systematic manner.

Book-Keeping and accounting are synonymous terms.

 Accounting is a broader term than book-keeping .

 Book-Keeping helps in preparing the budget of the business.

3. The process of identifying, measuring and communicating economic information to the users of the information is called.





4. Which of the following is not a branch of accounting.


 Financial Accounting

 Cost Accounting

 Management Accounting

5. Which of the following is an objective of accounting:

 Maximisation of Wealth

 Maximisation of Profit

 Ascertainment of Profit

 All the above.

6. Which of the following is not an advantage of accounting

 Permits alternative treatment.

 Acts as reliable evidence.

 Replaces memory

 Helps in settlement of tax matters with tax authorities.

7. Which of the following is not a limitations of accounting:

 Influenced by personal judgements.

 Ignores non-monetary transactions.

 Does not provide timely informations.

 Helps in ascertainment of value of business.

8. Which of the following is not the user of accounting informations:

 Parties not related with business.




9. Goods in hand at the beginning of a year is called





10. Income = Revenue –  —————–





11. Which accounting concept helps the accountant in detecting errors:

 Money measurement concept

 Dual Aspect Concept

 Going concern concept

 Separate Entity concept

12. Which accounting concept provides a basis for showing the value of an asset in the balance sheet:

Going concern concept

 Business Entity Concept

 Dual-Aspect Concept

 Money measurement Concept

13. These become the basic assumptions, rules and principles which work as the basis of recording of business transactions and preparing accounts:

 Accounting Concepts

 Accounting Conventions

 Both accounting concepts and conventions

 None of the above.

14. Which accounting concept guides the accountants as to what to record and what not to record in the books of accounts:

 Separate Entity Concept

 Going concern concept

 Dual-Aspect Concept

 Money measurement Concept

15. Which of the following is not a convention:





16. Which of the following helps in comparative analysis of financial transactions:



 Separate Entity


17. Which accounting convention states that only relevant and important informations should be provided to the user of accounting informations:




 Both Conservatism and Consistency

18. Which convention is based on the principle ‘Anticipate no profit, but provide for all possible losses.




 None of the above

19. Going concern concept states that every business firm will continue to carry on its activities ————————————-

 For 1 year

 For a definite time period

For an indefinite period

 For 5 Years

20. Fixed Assets are shown in the books at their

 Market Price

 Cost Price

 Replacement Price

 Book value

21. As per convention of ——————– year after year same methods are followed.


 Full Disclosure



22. Which convention states that anticipate no profit, but provide for all losses.

 Full Disclosure



 Full Disclosure

23. AS 1 deals with ——————————-

 Intangible assets

 Cash Flow

 Earnings per share

 Disclosure of Accounting Policies

24. AS  10 deals with

 Revenue Recognition

 Valuation of inventories

  Accounting for fixed assets

 Accounting for Research and Development.

25. GAAP Stands for

 Generally Accepted Accounting Policies.

 Generally Accepted Accounting Period

 Generally Accepted Accounting Period

 Generally Accepted Accounting Principles.

26. The ICAI has issued ———— accounting standards.





27. Till date IASC has brought out —————————–accounting standards.





28. Precious metals like gold, diamond, minerals are generally valued at ———————-.

 Cost price

 Price after depreciation

 Market Price

 None of these

29. The Institute of Chartered Accountants of India (ICAI)

Constituted the Accounting Standard Board in the year-





30. Convention of Conservatism is based on the principle.

 Anticipate no profit

 Provide for all possible losses

Anticipated no profit, but provide for all possible losses

 None of these

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