DELHI PUBLIC SCHOOL- BOPAL,AHMEDABAD

ASSIGNMENT-1 (2025- 26)

CHAPTER-1 INTRODUCTION TO ACCOUNTING

CLASS: XI DOS:15/04/2025
SUBJECT: ACCOUNTANCY

1. Which of the following is the primary objective of accounting?

(a) To record financial transactions.
(b) To prepare tax returns.
(c) To determine the amount of goods produced.
(d) To provide financial information to stakeholders.
2. Which of the following statements best describes accounting?
(a) It is a method of recording non-financial transactions.
(b) It involves only the preparation of financial statements.
(c) It is the art of recording, classifying, summarizing, and interpreting financial transactions.
(d) It is used solely for calculating taxes.
3. Which of the following is not a branch of accounting
(a) Financial Accounting
(b) Management Accounting
(c) Tax Accounting
(d) Forensic Accounting
4. Purchases made at the end of the financial year but not recorded in the books of accounts will be
recorded in the beginning of next financial year. It is an example of:
(a)Historical Cost (b)Window dressing (c)Good Planning (d)Good decision making
5. As we know that the benefit of expenses is enjoy only for one accounting period where as benefit of
expenditure is enjoyable for long period. Which of the following is not an example of such expenditure:
(a)Building (b)Machinery (c) Office equipment (d)Salary
6. The junior staff whose responsibility is less do the work of ………..and it doesn’t required special
knowledge and ability. What we are talking about?
(a) Accounting (b) Book- Keeping (c) Management (d) Accountancy
7. Which of the following is not a business transactions:
(a) Proprietor withdrew Rs. 12,000 from business (b) Paid rent for office premises Rs.300
(c) Resignation by factory manager (d) Received Rs 500 as commission
8. Pick the correct order from the following:
(a) Recording- Summarising- Analysis and Interpretation – communicating
(b)Recording- communicating - Analysis and Interpretation –Summarising-
(c )Recording- classifying - Summarising- Analysis and Interpretation
(d)Identifying- Measuring- Recording- Communicating
9.Which of the following is a key feature of financial accounting?
(a) It focuses on future planning and decision-making.
(b) It is primarily used for internal decision-making.
(c) It records transactions based on historical costs.
(d) It provides detailed reports for management use
10.The primary qualities that make accounting information useful for decision-making are:
(a) Relevance and free from bias (b) Reliability and comparability
(c) Comparability and consistency (d) None of the above
11. Which qualitative characteristic of accounting information is reflected when accounting information
is clearly presented?
(a)Relevance (b)Understandability (c )Reliability (d)Comparability
12. Match the following:
(1) Judgement about- (A) Summarising profitability and financial position
(2) Ledger (B) Analysis & Interpretation
(3) Journal (C) Classifying
(4) Preparation of (D) Recording financial statements.
13. Which qualitative feature of accounting is reflected in the following cases:
(a) free from personal bias
(b) information is clearly presented.
(c) information about departments.
(d) consistent use of accounting policies and conventions.
14.Which of the following transactions is not of financial character :
(a) Purchase of goods on credit(b) Purchase of a building (c) Payment of salaries (d) Strike by employees
15. Internal users of accounting information are :
(a) creditors (b) potential investors (c) managers (d) researchers
16. External users of accounting information are :
(a) researchers (b) government (c) tax authorities (d) all of the above
17. Which of the following is a key feature of financial accounting?
(a) It focuses on future planning and decision-making.
(b) It is primarily used for internal decision-making.
(c) It records transactions based on historical costs.
(d) It provides detailed reports for management use.
18. Which of the following is not a step in the process of accounting?
(a) Recording transactions in the books of original entry. (b) Posting to Ledger.
(c) Preparation of Trial Balance. (d) Payment of Tax.
19 Use of common unit of measurement and common format of reporting promotes;
(a) Comparability
(b) Understandability
(c) Relevance
(d) Reliability
20. Which of the following is not a limitation of accounting?
(a) Based on Accounting Convention
(b) Evidence in Legal Matters
(c) Incomplete Information
(d) Omission of Qualitative Information
21. Distinguish between :
a) External and internal transactions
b) External users and Internal users
c) Debtors & creditors
d) Capital expenditure and revenue expenditure
e) Profit and gain

22. Identify the Term

a) A person to whom goods are sold on credit:
b) Liabilities payable within a period of one year:
c) Assets which have no physical appearance:
d) Assets which can be converted into cash within a period of one year :
e) Discount which is never recorded in the books:
f) Type of receipt when money is received from sale of fixed asset :
g) Type of expenditure involved in cost of installation of plant and machinery:
h) Type of expenditure which helps to maintain the earning capacity of the business:
23.Select the correct answer:
i. Purchases refers to purchase of goods/assets.
ii. A debtor is a person from whom the money is to be received/paid.
iii. Stock is a part of current /fixed asset.
iv. Purchase of machinery by a manufacturer is a capital/ revenue expenditure.
v. Sale of fixed asset/ goods is a Revenue.
vi. Excess of revenue over total expense is profit/Loss.
vii. A liability to pay arises from cash/credit transaction.
viii. A bill of exchange accepted by the buyer of the goods is called bills payable/bills receivable.
ix. Reduction in the list price of the goods at fixed rate is called cash/trade discount.
x. A person who owes money to the firm is called a debtor/creditor.
SUBJECTIVE QUESTIONS:
24. State the limitations of accounting.
25. Explain the qualitative characteristics of accounting.
26. Explain in detail the users of accounting information & their information needs.
27. Explain the process of accounting.
28. State the advantages of accounting.
29.Discuss the objectives of accounting.

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