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Vidaara.orgClass 11 · Mathematics
CodeVID-M11-WS
Introduction to Accounting — Practice Worksheet
Chapter: Introduction to Accounting
Topic: Introduction to Accounting
Maximum Marks: 35
Time: 30 minutes
Name: ____________________ Roll No.: __________ Date: ____________

General Instructions

  • All questions are compulsory.
  • Choose the correct option (A, B, C or D) for each question.
  • The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each) 15 × 1 = 15 marks
1.
Accounting is best described as the:
  • A.Language of business
  • B.Law of the land
  • C.Art of selling
  • D.Study of machines
2.
The routine recording of day-to-day transactions is called:
  • A.Book-keeping
  • B.Auditing
  • C.Costing
  • D.Budgeting
3.
Arrange from widest to narrowest:
  • A.Book-keeping > Accounting > Accountancy
  • B.Accountancy > Accounting > Book-keeping
  • C.Accounting > Accountancy > Book-keeping
  • D.All equal
4.
Which is NOT an objective of accounting?
  • A.Keeping systematic records
  • B.Ascertaining profit or loss
  • C.Increasing the owner's personal fame
  • D.Showing financial position
5.
Which of these is an internal user of accounting information?
  • A.A bank
  • B.The tax department
  • C.The management
  • D.A supplier
6.
Investors and lenders are ____ users.
  • A.Internal
  • B.External
  • C.Imaginary
  • D.Government
7.
The branch that prepares the profit & loss account and balance sheet for outsiders is:
  • A.Cost accounting
  • B.Management accounting
  • C.Financial accounting
  • D.Tax planning
8.
Amount invested by the owner in the business is called:
  • A.Drawings
  • B.Capital
  • C.Liability
  • D.Expense
9.
Goods bought for resale are recorded as:
  • A.Assets
  • B.Purchases
  • C.Capital
  • D.Drawings
10.
A person who owes money to the business is a:
  • A.Creditor
  • B.Debtor
  • C.Owner
  • D.Banker
11.
A person to whom the business owes money is a:
  • A.Debtor
  • B.Creditor
  • C.Customer
  • D.Investor
12.
Which is a limitation of accounting?
  • A.It keeps a permanent record
  • B.It records only money-measurable items
  • C.It helps assess tax
  • D.It helps compare performance
13.
Two qualities that make accounting information useful are:
  • A.Reliability and relevance
  • B.Length and colour
  • C.Speed and noise
  • D.Size and weight
14.
Cash withdrawn by the owner for personal use is:
  • A.An expense
  • B.Drawings
  • C.A liability
  • D.Revenue
15.
Manipulating accounts to look better than reality is called:
  • A.Window dressing
  • B.Posting
  • C.Balancing
  • D.Casting
Section B — Challenge / Olympiad (2 marks each) 10 × 2 = 20 marks
16.
A firm employs a brilliant, highly motivated team, yet its books show nothing about this. Which limitation explains it?
  • A.Accounting records only money-measurable items
  • B.Accounting is window-dressed
  • C.Accounting ignores all assets
  • D.Accounting is illegal
17.
A shopkeeper says, 'I never write anything down; I remember everything.' The strongest accounting argument against this is that records:
  • A.Provide a permanent, reliable evidence that memory cannot
  • B.Are illegal to keep
  • C.Reduce his profit
  • D.Are only for big firms
18.
Ramesh sold goods to Suresh on credit. In Ramesh's books, Suresh is a ____; in Suresh's books, Ramesh is a ____.
  • A.debtor; creditor
  • B.creditor; debtor
  • C.debtor; debtor
  • D.creditor; creditor
19.
A bank deciding whether to lend to a firm is mainly interested in the firm's:
  • A.Ability to repay (financial soundness)
  • B.Office wall colour
  • C.Staff lunch menu
  • D.Owner's hobbies
20.
Choosing a depreciation method changes the reported profit. This illustrates which limitation?
  • A.Influence of personal judgement / estimates
  • B.It records only cash
  • C.It is the language of business
  • D.It ignores liabilities
21.
Which sequence correctly shows the accounting process?
  • A.Identify → Record → Classify → Summarise → Communicate
  • B.Communicate → Record → Identify
  • C.Summarise → Identify → Record
  • D.Record → Communicate → Identify
22.
A manager wants a report comparing the cost of two products to decide which to expand. The most relevant branch is:
  • A.Cost accounting
  • B.Tax accounting
  • C.Auditing
  • D.Book-keeping
23.
Why are 'drawings' never treated the same as a business expense?
  • A.They are the owner's personal use, not a cost of earning revenue
  • B.They increase profit
  • C.They are revenue
  • D.They are a liability of outsiders
24.
Two firms use different methods, making their profits hard to compare. Which quality of useful information is weakened?
  • A.Comparability
  • B.Colour
  • C.Secrecy
  • D.Speed
25.
A company presents its accounts to hide weak performance before a loan application. This is:
  • A.Window dressing
  • B.Reliable reporting
  • C.Cost accounting
  • D.A contra entry

Answer Key

Section A — Multiple Choice (1 mark each)
  1. (A) Language of business
  2. (A) Book-keeping
  3. (B) Accountancy > Accounting > Book-keeping
  4. (C) Increasing the owner's personal fame
  5. (C) The management
  6. (B) External
  7. (C) Financial accounting
  8. (B) Capital
  9. (B) Purchases
  10. (B) Debtor
  11. (B) Creditor
  12. (B) It records only money-measurable items
  13. (A) Reliability and relevance
  14. (B) Drawings
  15. (A) Window dressing
Section B — Challenge / Olympiad (2 marks each)
  1. (A) Accounting records only money-measurable items
  2. (A) Provide a permanent, reliable evidence that memory cannot
  3. (A) debtor; creditor
  4. (A) Ability to repay (financial soundness)
  5. (A) Influence of personal judgement / estimates
  6. (A) Identify → Record → Classify → Summarise → Communicate
  7. (A) Cost accounting
  8. (A) They are the owner's personal use, not a cost of earning revenue
  9. (A) Comparability
  10. (A) Window dressing
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