Important Theory Questions in Accountancy Class 11

Important Theory Questions in Accountancy Class 11

These are some Very Important Questions with Answers which students must understand:

Questions

1. Give any three points of superiority of Accrual Basis of Accounting over Cash Basis of Accounting.
2. Give a transaction that can break the Accounting Equation.
3. 'Provide for all the possible losses but don't anticipate profits.' Identify the Accounting concept referred in this sentence.
4. What is window dressing?
5. How does Cash book serve the dual purpose?
6. What is contra entry?
7. What do you mean by imprest?
8. Is Trial Balance the conclusive evidence of accuracy of Accounting records?
9. What option is available to the accountant if Trial Balance doesn't match and Final Accounts are to be prepared?
10. What is the nature of Suspense Account?
11. Which accounts are not balanced?
12. Which accounts are not taken to Trial Balance?
13. Which accounts are taken to Trading account and Profit and Loss account?
14. What types of accounts are taken to the Balance Sheet?
15. When is CGST used?
16. Identify the subsidiary book in which the following can be recorded: (a) Paid rent, (b) Outstanding wages.

17. Identify the type of Accounting Error: (a) Wages paid to Ankit debited to Ankit account. (b) Debit side of Mahesh account cast short.

18. Identify whether the following are capital items or revenue items: (a) Rent paid, (b) Wages paid for construction of building.

19. What are the two basis of Marshalling of Balance Sheet?
20. Arrange the following items in order of permanence: (a) Land and building, cash in hand, stock.  (b) Bank loan, Bills payable, Capital.

21. What type of accounts are included in financial statements?
22. Where do we transfer different types of accounts from Trial Balance, while preparing financial statements of sole proprietor?
23. What is secret reserve?
24. What are operating expenses and non-operating expenses?
25. Give two examples of indirect expenses.
26. What is the difference between operating profit and net profit?
27. Write the main difference between provision and reserve.
28. What is opening journal entry?
29. Give an example of adjusting entry.
30. Write the difference between depreciation and amortization.
31. What is depletion of an asset?
32. Write the main difference between gross profit and net profit.
33. Give any two similarities of Balance Sheet and Trial Balance.
34. Give any two objectives of GST.
35. Out of journal and ledger which one is known as book of prime entry and why?
36. What is the purpose of pay-in-slip?
37. Why do we record personal expenses of proprietor as drawings, while preparing financial statements of sole proprietor?
38. Give any two qualitative characteristics of accounting information.
39. Give any two examples of specific reserve.
40. Which system of accounting is called unscientific and incomplete and why?
41. What is revenue expenditure?
42. What is deferred revenue expenditure?
43. Give any two uses of accounting standards.
44. Give the full form of ICAI and IFRS.

Answers on the next page.