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Introduction to Accounting (11 Accountancy)

Practise chapter-wise MCQs for Class 11 Accountancy — Introduction to Accounting. Every question comes with the correct answer and an explanation.

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TL;DR: Practise chapter-wise MCQs for Class 11 Accountancy — Introduction to Accounting. Every question comes with the correct answer and an explanation.

Written & reviewed by the Syllab.in Academic Team (CBSE/NCERT subject experts) · Updated Aug 8, 2026

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Practise chapter-wise MCQs for Class 11 Accountancy — Introduction to Accounting. Every question comes with the correct answer and an explanation.

Introduction to Accounting MCQs with Answers & Explanations

Q1. What does the 'profitability' aspect of accounting aim to measure?

  1. The efficiency of the business in generating income over a period ✓ (correct)
  2. The value of assets owned by the business
  3. The liquidity of the business
  4. The solvency of the business

Explanation: Profitability measures how effectively a business generates revenue and controls expenses to earn a profit over a specific period.

Q2. Which of the following is NOT a qualitative characteristic of accounting information?

  1. Relevance
  2. Objectivity ✓ (correct)
  3. Reliability
  4. Comparability

Explanation: Objectivity is a fundamental qualitative characteristic. Relevance, reliability, and comparability are also key qualitative characteristics.

Q3. The accounting process begins with:

  1. Analysis of financial data
  2. Summarization of accounts
  3. Identification and recording of transactions ✓ (correct)
  4. Preparation of financial statements

Explanation: The very first step in the accounting cycle is identifying a financial event or transaction and then recording it.

Q4. Which branch of accounting focuses on providing information for internal decision-making and planning?

  1. Social Accounting
  2. Financial Accounting
  3. Cost Accounting
  4. Management Accounting ✓ (correct)

Explanation: Management Accounting is specifically tailored to provide information to internal managers for planning, controlling, and decision-making.

Q5. The purpose of the accounting standard 'Matching Concept' is to:

  1. Match expenses with revenues for the period ✓ (correct)
  2. Match assets with liabilities
  3. Match sales with purchases
  4. Match revenues with capital

Explanation: The Matching Concept dictates that expenses incurred to generate revenue should be recognized in the same accounting period as the revenue they helped to earn.

Q6. The primary source document used to record a sale on credit is a:

  1. Cash Memo
  2. Invoice ✓ (correct)
  3. Debit Note
  4. Credit Note

Explanation: An invoice is issued to the customer when goods or services are sold on credit, detailing the transaction and amount due.

Q7. Information provided by accounting is useful for:

  1. Internal users only
  2. External users only
  3. Both internal and external users ✓ (correct)
  4. No users

Explanation: Accounting information serves a dual purpose, assisting both managers (internal users) in their decision-making and external parties like investors and creditors.

Q8. Which accounting concept requires that financial statements should be prepared on the assumption that the business will continue to operate indefinitely?

  1. Matching Concept
  2. Dual Aspect Concept
  3. Revenue Recognition Concept
  4. Going Concern Concept ✓ (correct)

Explanation: The Going Concern Concept assumes that the business has an indefinite life and will not be liquidated in the foreseeable future.

Q9. Which of the following is NOT a primary objective of accounting?

  1. To provide subjective interpretations of financial data ✓ (correct)
  2. To facilitate decision-making
  3. To maintain systematic records
  4. To ascertain the financial position

Explanation: Accounting aims for objectivity in presenting financial information, not subjective interpretations. Maintaining records, determining financial position, and aiding decisions are core objectives.

Q10. The process of recording, classifying, and summarizing financial transactions in a systematic manner is known as:

  1. Auditing
  2. Bookkeeping ✓ (correct)
  3. Financial Accounting
  4. Management Accounting

Explanation: Bookkeeping is the initial recording, classifying, and summarizing of financial transactions. Accounting is a broader process that includes analysis and interpretation of this information.

More 11 Accountancy MCQs

  • Accounting for Partnership: Basic Concepts
  • Goodwill: Nature and Valuation
  • Reconstitution of a Partnership Firm - Change in Profit Sharing Ratio
  • Reconstitution of a Partnership Firm - Admission of a Partner
  • Reconstitution of a Partnership Firm - Retirement and Death of a Partner
  • Dissolution of Partnership Firm

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