Financial Statements – I

This page contains the CBSE accountancy class 11 chapter 9, Financial Transactions – I questions Solutions. You can find the questions/answers/solutions for the chapter 9 of CBSE class 11 accountancy in this page. So is the case if you are looking for CBSE class 11 Commerce related topic Financial Transactions – I

Test Your Understanding – I
State True or False
  1. Gross profit is total revenue (❌ False)
  2. In trading and profit and loss account, opening stock appears on the debit side because it forms the part of the cost of sales for the current accounting year. (✔ True)
  3. Rent, rates and taxes is an example of direct expenses. (❌ False)
  4. If the total of the credit side of the profit and loss account is more than the total of the debit side, the difference is the net profit. (✔ True)
II Match the items given under ‘A’ with the correct items under ‘B’
  1. Closing stock is credited to (Trading Account)
  2. Accuracy of book of account is tested by (Trial Balance)
  3. On returning the goods to seller, the buyer sends (Debit Note)
  4. The financial position is determined by (Balance Sheet)
  5. On receiving the returned goods from the buyer, the seller sends (Credit Note)
Test Your Understanding – II
Choose the correct option in the following questions :
  1. The financial statements consist of:
    1. Trial balance
    2. Profit and loss account
    3. Balance sheet
    4. (i) and (iii)
    5. (ii) and (iii) ✔
  2. Choose the correct chronological order of ascertainment of the following profits from the profit and loss account :
    1. Operating Profit, Net Profit, Gross Profit
    2. Operating Profit, Gross Profit, Net Profit
    3. Gross Profit, Operating Profit, Net Profit ✔
    4. Gross Profit, Net Profit, Operating Profit
  3. While calculating operating profit, the following are not taken into account.
    1. Normal transactions
    2. Abnormal items
    3. Expenses of a purely financial nature ✔
    4. (ii) & (iii)
    5. (i) & (iii)
  4. Which of the following is correct :
    1. Operating Profit = Operating profit – Non-operating expenses – Non-operating incomes
    2. Operating profit = Net profit + Non-operating Expenses + Non-operating incomes
    3. Operating profit = Net profit + Non-operating Expenses – Non-operating incomes ✔
    4. Operating profit = Net profit – Non-operating Expenses + Non-operating incomes