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Important Questions for Chapter 9 Financial Statements 1

Important Questions with Answers for CBSE Class 11 Accountancy Chapter 9 Financial Statements 1which is outlined by expert Accountancy teachers from the latest version of CBSE (NCERT) books.

CBSE Class 11 Accountancy Chapter -9 Important Questions

Question 1

Define financial statement?

Answer:

Financial statement is a statement which presents financial profit data and financial status of a company.

Question 2

Which are the statement that is included in the financial statement?

Answer:

The two statements that are included in the financial statements are:

  • Balance Sheet
  • Income Statement (Trading and Profit and Loss A/c)

Also Check: Important Questions Chapter 10 Financial Statements -2

Question 3

What is a trading account?

Answer:

A trading account is a financial statement that shows the result of the purchase and selling of goods and services of an accounting year.

Question 4

What do you mean by gross profit?

Answer:

Gross profit is the surplus of a selling price of a product over the cost of goods sold.

Question 5

State the formula to calculate operating profit from net profit.

Answer:

Operating Profit = Net Profit – Non-Operating Income + Non-Operating Expenses

Question 6

State the formula to calculate the cost of goods sold.

Answer:

Cost of goods sold = Sales – Gross Profit

Or

Cost of goods sold (COGS) = Opening Stock + Purchases + Direct Expenses – Closing Stock

Question 7

Define Balance Sheet.

Answer:

A Balance Sheet is a statement which shows the liabilities, assets and shareholder’s equity of the enterprise. This statement comprises of 2 major groups in which it is categorized, namely, assets, which is classified into Non – Current Assets and Current assets. Current Assets are such assets which are easily transformed into cash. On the other hand, the Non – Current Assets are such types of assets with the assistance of which the enterprise operates the enterprise.

Question 8

Give two characteristics of the balance sheet.

Answer: The two characteristics of the balance sheet are.

  • Determine the financial position of the enterprise on a specific date
  • The total of two sides of the balance sheet i.e. assets and liabilities should tally with each other, if not so it indicates any possible errors in accounting.

Question 9

Define Net profit

Answer:

Net profit refers to the surplus of all the revenues overall expenses and losses of a company.

Question 10

Goodwill is a tangible asset. True or False?

Answer:

False

Question 11

The current asset does not include closing stock. True or False?

Answer:

False

Question 12

A balance sheet is arranged in a particular date and not for a particular accounting period. True or False?

Answer:

True

Question 13

Goodwill is:

(a) Current Asset

(b) Tangible Asset

(c) Intangible Asset

(d) Fictitious Asset

Answer:

(c) Intangible Asset

Question 14

Balance of petty cash is regarded as:

(a) Expenses

(b) Income

(c) Liability

(d) Asset

Answer:

(d) Asset

Question 15

The purpose of preparing a final account is to determine:

(a) Profit and Loss

(b) Capital

(c) The value of Assets

(d) Profit and Loss and Financial position

Answer:

(d) Profit and Loss and Financial position

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