Class XI Accountancy-1

Which of the following is not in the process of accounting?

• Recording in the books of entry

• Posting to ledger

• Preparation of Trial balance

• Payment of Tax

Which of the following is not a function of accounting?

• measurement

• forecasting

• control

• solvency position

Which group would be more interested in knowing the long term solvency position of the firm?

• lenders

• government

• society

• employees

Which of the following is not a qualitative characteristics of accounting information?

• Reliaibility

• understandability

• comparability

• materiality

Which of the following is not a business transaction?

• Paid insurance premium Rs 2000

• purchase of goods for sale Rs 15,000

• Paid wages Rs 1000

• Purchased furniture for personal use

The basic function of financial accounting is to

• record all business transactions

• interpret financial data

• assist the management

• None of these

Which is the last step of accounting as a process of information?

• Recodring of transactions

• Preparation of Financial statements

• Communication of information

• Analysis and interpretation of information

The Financial statements does not include

• Trading Account

• Profit and Loss Account

• Ledger accounts

• Balance Sheet

Transactions are posted into Ledger accounts from

• Vouchers

• Journal Book

• Bank statement

• Cash book

Accounting does not show the realisable value of business. It is a/an

• function of accounting

• limitation of accounting

• advantage of accounting