MCQ of Process and Basis of Accounting Class 11 with answers

First step in accounting process is:

(a) Recording in the books of Original Entry
(b) Posting to Ledger
(c) Identification of Transactions
(d) Preparation of Trial Balance

Under accrual basis of accounting, incomes are accounted when they are

(a) Received
(b) Earned
(c) Earned as well as received
(d) None of these

Which Basis of Accounting does not follow the matching principle of accounting?

(a) Accrual
(b) Cash
(c) Both (a) and (b)
(d) None of these

Cash Basis of Accounting records

(a) Cash transactions
(b) Credit transactions
(c) Bank transactions
(d) (a) and (c)

In Accounting, bases of ascertaining profit or loss is:

(a) Cash Basis
(b) Accrual Basis
(c) Either Cash or Accrual Basis
(d) None of the above

In cash basis of accounting, expenses are accounted

(a) when paid in cash
(b) when cash is not paid
(c) when cash is paid or not paid
(d) None of these

In cash basis, expenses are recorded:

(a) When paid in cash
(b) When not paid in cash
(c) When paid or not paid in cash
(d) None of the above

Under which basis of accounting accrued incomes are adjusted?

(a) Cash basis of accounting
(b) Accrual basis of accounting
(c) Both (a) and (b)
(d) None of these

In accrual basis recording is made of:

(a) Cash transactions
(b) Credit transactions
(c) Cash as well as credit transactions
(d) None of the above

Which basis of accounting is recognised under the Companies Act, 2013?

(a) Cash basis of accounting
(b) Accrual basis of accounting
(c) Both (a) and (b)
(d) None of these

Under the Companies Act, all companies are required to maintain their accounts according to

(a) Cash Basis
(b) Accrual basis
(c) Either Cash or Accrual basis
(d) None of the above

According to accrual basis of accounting, expenses are accounted

(a) on payment
(b) on being incurred
(c) on prepayment
(d) None of these