Financial Statements Class 11 MCQ: Check the below NCERT MCQ Questions for Accountancy Financial Statements Class 11 MCQ with Answers Pdf free download. Financial Statements Class 11 MCQ  Questions for Accountancy with Answers were prepared based on the latest exam pattern. We have provided Financial Statements Class 11 Questions with Answers to help students understand the concept very well.

Financial Statements Class 11 MCQ

1. Profit and loss account disclose _____.
(a) Gross profit
(b) Gross loss
(c) Gross profit or Gross loss
(d) None of the above

2. Direct Expenses are entered in _____.
(a) Trading Account
(b) Profit and Loss Account
(c) Balance Sheet
(d) None of the above

3. Which of the following items is included in the adjustment of net income to obtain cash flow from operating activities?
(a) Depreciation expense for the period
(b) The change in deferred taxes
(c) The amount by which equity income is recognised exceeds cash received
(d) All of the above

4. Profit earned through normal activities of the business is _______.
(a) Operating profit
(b) Net profit
(c) Gross profit
(d) Manufacturing profit

5. What is a limitation common to both the current and quick ratio?
(a) Accounts receivable may not be truly liquid
(b) Inventories may not be truly liquid
(c) Marketable securities are not liquid
(d) Prepaid expenses are potential sources of cash

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