Worksheet: Introduction to Accounting | Accountancy Class 11 - Commerce PDF Download

Multiple Choice Questions

Q2: Which of the following is not an essential element of accounting?
(a) Assets
(b) Liabilities
(c) Income
(d) Employee satisfaction

Q3: Which financial statement provides information about a company's financial position at a specific point in time?
(a) Income Statement
(b) Balance Sheet
(c) Cash Flow Statement
(d) Trial Balance

Q4: Which accounting principle states that expenses should be recognized when they are incurred and can be measured reliably?
(a) Matching Principle
(b) Revenue Recognition Principle
(c) Consistency Principle
(d) Materiality Principle

True or False 

Q2: The main purpose of financial accounting is to provide information to internal management.

Q3: A credit entry decreases an asset account.

Q4: Depreciation is recorded as an expense in the income statement.

Q5: The cash basis of accounting recognizes revenue when it is received and expenses when they are paid.

Q6: The accounting cycle typically starts with the preparation of the Balance Sheet.

Very Short Answers

Q2: What is the role of 'Journal' in the accounting process?

Q3: Explain the concept of 'Accrual Basis Accounting'.

Q4: What is the purpose of a 'Trial Balance'?

Q5: Define 'Owner's Equity' in accounting terms.

Short Answers 

Q2: Explain the steps involved in the preparation of a Balance Sheet.

Q3: What is the significance of 'Conservatism' in accounting principles?

Q4: Describe the 'Matching Principle' and its importance in financial reporting.

Q5: Explain the concept of 'Materiality' and how it impacts financial reporting.

Long Answers

Q2: Describe the components of a typical Income Statement and explain how it reflects a company's financial performance.

Q3: Explain the concept of 'Accounting Standards' and why they are important in financial reporting.

Q4: Discuss the ethical considerations in accounting, including the importance of integrity and confidentiality.

Q5: Describe the process of preparing and analyzing a Cash Flow Statement. Include its significance for investors and creditors.