MCQ Questions for Class 11 Accountancy Chapter 2 Theory Base of Accounting with Answers

Choose the Correct Answer.

Question 1.
During the lifetime of an entity accounting produce financial statements in accordance with which basic accounting concept:
(a) Conservation
(b) Matching
(c) Accounting period
(d) None of the above

Answer

Answer: (c) Accounting period


Question 2.
When information about two difference enterprises have been prepared presented in a similar manner the information exhibits the characteristic of:
(a) Verifiability
(b) Relevance
(c) Reliability
(d) None of the above

Answer

Answer: (d) None of the above


Question 3.
A concept that a business enterprise will not be sold or liquidated in the near future is known as :
(a) Going concern
(b) Economic entity
(c) Monetary unit
(d) None of the above

Answer

Answer: (a) Going concern


Question 4.
The primary qualities that make accounting information useful for decision-making are
(a) Relevance and freedom from bias
(b) Reliability and comparability
(c) Comparability and consistency
(d) None of the above

Answer

Answer: (b) Reliability and comparability


Fill in the blank with correct word

Question 1.
Recognition of expenses in the same period as associated revenues is called ………………. concept.

Answer

Answer: Matching


Question 2.
The accounting concept that refers to the tendency of accountants to resolve uncertainty and doubt in favour of understating assets and revenues and overstating liabilities and expenses is known as ………………….

Answer

Answer: Conservatism


Question 3.
Revenue is generally recognised at the point of sale denotes the concept of ………………….

Answer

Answer: Revenue Realisation


Question 4.
The ………………… concept requires that the same accounting method should be used from one accounting period to the next.

Answer

Answer: Consistency


Question 5.
The ……………….. concept requires that accounting transaction should be free from the bias of accountants and others.

Answer

Answer: Objectivity.


 


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