MCQ Questions Class 11 Financial Statements 2 With Answers

CBSE Class 11 Financial Statements 2 Multiple Choice Questions with Answers. MCQ Questions Class 11 Financial Statements 2 with Answers Is Prepared Based on Latest Exam Pattern. Students can solve NCERT MCQ questions Class 11 Financial Statements 2 with Answers to know their preparation level.

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MCQ Questions Class 11 Financial Statements 2 with Answers - Set - 1

Question 1:

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

Check Answer

Correct Answer – (A)

Question 2:

Charity of goods is-
(a) Expenses
(b) Loss
(c) Profit
(d) None of these.

Check Answer

Correct Answer – (B)

Question 3:

Outstanding Expenses are related to-
(a) Current year
(b) Next year
(c) Last year
(d) None of these.

Check Answer

Correct Answer – (A)

Question 4:

If the opening capital is Rs. 50,000 as on April 1, 2005 and additional capital introduced Rs. 10,000 on January 1,2006. Interest charge on capital 10% p.a. The amount of interest on capital shown in profit and loss account as on March 31, 2006 will be:
(a) Rs. 5,250
(b) Rs. 6,000
(c) Rs. 4,000
(d) Rs. 3,000

Check Answer

Correct Answer – (A)

Question 5:

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

Check Answer

Correct Answer – (D)

MCQ Questions Class 11 Financial Statements 2 With Answers

Question 6:

If a person fails to pay his debt, such amount is considered as-
(a) Bad debts
(b) Bad debts recovered
(c) Provision for Bad debt
(d) None of these.

Check Answer

Correct Answer – (A)

Question 7:

Prepaid expenses are shown in-
(a) Liability side
(b) Asset side
(c) Assets or Liability side
(d) None of these

Check Answer

Correct Answer – (B)

Question 8:

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

Check Answer

Correct Answer – (D)

Question 9:

If the rent received in advance Rs. 2,000. The adjustment entry will be
(a) Debit profit and loss account and Credit rent account.
(b) Debit rent account Credit rent received in advance account.
(c) Debit rent received in advance account and Credit rent account.
(d) None of these

Check Answer

Correct Answer – (B)

Question 10:

Rahul’s trial balance provide you the following information:
Debtors – Rs. 80,000
Bad debts – Rs. 2,000
Provision for bad debts – Rs. 4,000
It is desired to maintain a provision for bad debts of Rs. 1,000. State the amount to be debited/credited in Profit & Loss A/c.
(a) Rs. 5,000 (Debit)
(b) Rs. 3,000 (Debit)
(c) Rs. 1,000 (Credit)
(d) None of these