Assertion Reason MCQs of Accounting Equation with answers Class 11
Assertion Reason MCQs of Accounting Equation with answers Class 11 CBSE, ISC and State Boards
Given below are two statements, one labelled as Assertion (A) and other labelled as Reason (R):
Assertion (A): Accounting equation states that the total claim (internal and external) are always equal to total assets of the business.
Reason (R): It is based on dual aspect concept i.e., every transaction has 2 aspects debit and credit.
Options:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
Ans:- (a)
Assertion (A): Accounting Equation is based on Double Entry System of Accounting.
Reason (R): Accounting Equation is suitable to businesses having very few transactions.
Options:
(a) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of the Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of the Assertion (A).
(c) Both Assertion (A) and Reason (R) are not correct.
(d) Assertion (A) is correct but Reason (R) is not correct.
Ans:- (a)
Assertion (A): Main elements of accounting equation are Assets, Liabilities and Capital.
Reason (R): Assets = Liabilities + Capital
Options:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
Ans:- (a)
Assertion (A): Assets = Capital + Liabilities
Reason (R): Liabilities = Assets – Capital
(a) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of the Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of the Assertion (A).
(c) Both Assertion (A) and Reason (R) are not correct.
(d) Assertion (A) is correct but Reason (R) is not correct.
Ans:- (a)
Assertion (A): In case goods costing ₹ 30,000 is sold for cash for ₹ 40,000, the accounting equation will hold true becasue it will lead to increase in cash by ₹ 40,000 and decrease in stock by a similar amount i.e., ₹ 40,000.
Reason (R): In the above mentioned cash accounting equation will hold true because cash will increase by ₹ 40,000; Stock will decrease by ₹ 30,000 and Capital will increase by ₹ 10,000.
Options:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
Ans:- (d)
Assertion (A): Assets + Liabilities = Capital
Reason (R): Liabilities = Assets + Capital
(a) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of the Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of the Assertion (A).
(c) Both Assertion (A) and Reason (R) are not correct.
(d) Assertion (A) is correct but Reason (R) is not correct.
Ans:- (c)
Assertion (A): Assets – Liabilities = Capital.
Reason (R): Liabilities = Assets + Capital
(a) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of the Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of the Assertion (A).
(c) Both Assertion (A) and Reason (R) are not correct.
(d) Assertion (A) is correct but Reason (R) is not correct.
Ans:- (a)
