KRISHNA ACADEMY
TEST - Chapter 3
CLASS 11 - ACCOUNTANCY
Time Allowed : 40 mins Maximum Marks : 30
Section A
1 According to Dual Aspect Concept, the system of recording transactions is called: [1]
a) Double Book System
b) All of these
c) Double Entry System
d) Double Account System
2 Double entry system is based on which accounting principle concept? [1]
a) Matching principle
b) Going concern concept
c) Business entity principle
d) Dual aspect principle
3 IASB upon coming into existence has adopted [1]
a) only IAS
b) some IAS and SIC.
c) All IAS and SIC
d) only SIC
4 Ind - AS are: [1]
a) Standard - based AS
b) principle - based AS
c) rule - based AS
d) partially rule - based and partially principle - based AS
Section B
5 State True or False: [3]
1. Convention of Prudence results in understatement of profits and assets
and overstatement of liabilities.
2. Following Accounting Period Principle, results of the business are
determined so that accounting information could be provided at regular
intervals to users of accounting information.
3. Assets will be equal to capital if there are no liabilities.
Section C
6 Consider the following statements with respectto the assumption of accounting [1]
period principles:
1. Mesure the progress of business accurately and on a conservative basis.
2. It facilitates accounting process.
3. Match periodic revenues with expenses for getting correct business
results.
4. Calculate income tax and other government dues.
Identify the correct statement/statements:
a) i, ii and iv
b) ii and iv
c) iii and iv
d) i and iii
Section D
7 What do you mean by fundamental accounting assumptions? [1]
8 What is the need of Accounting Principles? [2]
9 The accounting concepts and accounting standards are generally referred to as [2]
the essence of financial accounting. Comment.
1 Due to a labour strike, in a factory the production had to stop for a week, the [1]
0 accountant estimated the loss of production and likely loss of profit and recorded
it in the books of accounts. Is the accountant correct? Why ?
1 Explain the Accounting Period Assumption. [2]
1
1 Explain the following [3]
2
1. Periodicity concept
2. Dual aspect concept
1 Mention any two advantage or objective of accounting standards? [1]
3
1 How many accounting standards have been issued by ICAI? [1]
4
1 International Financial Reporting Standards (IFRS) provides a number of [3]
5 benefits. Explain any three.
1 International Accounting Standards Board (IASB) has a number of objectives to [3]
6 serve. Explain any three such objectives.
1 What are Accounting Standards? Name any two Accounting Standards. [3]
7
