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. What does an increasing collection period for accounts receivable suggest about a firm’s credit policy?
(a) The credit policy is too restrictive
(b) The firm is probably losing qualified customers
(c) The credit policy may be too lenient
(d) The collection period has no relationship to a firm’s credit policy

2. Subtracting all expenses from revenues yields ________.
(a) Net profit or loss
(b) Carrying value
(c) Long-term assets
(d) Net liabilities

3. The primary source of revenue for a wholesaler is _________.
(a) Investment income
(b) Service fees
(c) The sale of merchandise
(d) The sale of fixed assets the company owns

4. What information can be gained from sources such as Industry Norms and Key Business Ratios, Annual Statement Studies, Analyst’s Handbook, and Industry Surveys?
(a) The general economic condition
(b) Forecasts of earnings
(c) Elaboration of financial statement disclosures
(d) A company’s relative position within its industry

5. Which ratio or ratios measure the overall efficiency of the firm in managing its investment in assets and in generating a return to shareholders?
(a) Gross profit margin and net profit margin
(b) Return on investment
(c) Total asset turnover and operating profit margin
(d) Return on investment and return on equity

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