ICSE Class 11 Accountancy by Pavan | Practice Test to Test Your Knowledge
Students

Academic Programs

AI-powered learning for grades 8-12, aligned with major curricula

Engineering Courses
Professional

Professional Courses

Industry-relevant training in Business, Technology, and Design

Certifications
Games

Interactive Games

Fun games to boost memory, math, typing, and English skills

  2. Practice Tests
  3. ICSE Class 11 Accountancy
ICSE Class 11 Accountancy

ICSE Class 11 Accountancy

Complete Mock test on Accountancy, focusing on financial statements, bookkeeping, taxation, and practical applications in accounting.

2025-07-19
Pavan Pavan
ICSE Class 11 Grade 11 Accountancy

Duration

30 min

Questions

30

Marking

Negative

You've not yet enrolled in this practice test. Please login to start practice test.

Questions Preview

What is the main objective of accounting?

A
To provide financial information to external users
B
To analyze business performance
C
To prepare tax returns
D
To track inventory levels

Which of the following is NOT a type of account in accounting?

A
Personal Account
B
Real Account
C
Nominal Account
D
Capital Account

Which of the following is an example of a tangible asset?

A
Building
B
Goodwill
C
Patent
D
Trademark

Which of the following best defines a transaction in accounting?

A
An event that affects the financial position of the business
B
An internal decision made by the management
C
A record of the amount of capital invested in the business
D
A financial statement prepared at the end of the year

What does IFRS stand for?

A
International Financial Reporting Standards
B
International Fund Reporting System
C
International Fiscal Regulation Standards
D
International Financial Responsibility Standards

Which of the following is an example of a fictitious asset?

A
Preliminary Expenses
B
Building
C
Cash
D
Inventory

What is the accounting equation?

A
Assets = Liabilities + Equity
B
Liabilities = Assets + Equity
C
Equity = Liabilities - Assets
D
Assets = Revenue + Expenses

Which of the following is a type of liability?

A
Bank loan
B
Capital invested
C
Buildings
D
Inventory

What is the purpose of accounting standards?

A
To ensure uniformity in financial reporting across companies
B
To regulate taxation
C
To set interest rates for financial institutions
D
To manage stock market transactions

What is the main purpose of GAAP (Generally Accepted Accounting Principles)?

A
To provide a standard framework for financial accounting
B
To set tax policies for companies
C
To regulate stock market behavior
D
To determine the value of assets and liabilities

Which of the following is classified as a fixed asset?

A
Machinery
B
Inventory
C
Accounts payable
D
Cash

Which of the following is an example of a current liability?

A
Accounts payable
B
Long-term loans
C
Buildings
D
Inventory

What is meant by the term 'Revenue' in accounting?

A
Income generated from business operations
B
The cost of producing goods sold
C
Money spent on business operations
D
The net income after all expenses

Which of the following is classified as a fictitious asset?

A
Preliminary expenses
B
Plant and machinery
C
Buildings
D
Stock

Which of the following accounts is NOT considered an asset?

A
Accounts receivable
B
Cash
C
Accounts payable
D
Inventory

What is the difference between bookkeeping and accounting?

A
Bookkeeping focuses on recording transactions, while accounting involves interpreting and summarizing financial data
B
Bookkeeping is more complex than accounting
C
Accounting involves tax filing, while bookkeeping does not
D
There is no difference between bookkeeping and accounting

Which of the following is considered an intangible asset?

A
Goodwill
B
Building
C
Machinery
D
Land

Which of the following accounting principles ensures consistency in financial reporting?

A
GAAP (Generally Accepted Accounting Principles)
B
Revenue Recognition Principle
C
Matching Principle
D
Cost Principle

What does the term 'drawings' mean in accounting?

A
Money taken by the owner for personal use from the business
B
Money invested by the owner into the business
C
Income generated from sales
D
Expenses incurred by the business

What does 'capital' represent in accounting?

A
The owner's investment in the business
B
Profits generated by the business
C
Money owed by the business to creditors
D
The total value of assets

Which of the following is the main objective of accounting standards?

A
To ensure uniformity in financial reporting
B
To regulate stock market transactions
C
To set tax policies for businesses
D
To provide guidelines for financial statement formatting

Which of the following is a characteristic of an asset?

A
It provides future economic benefits
B
It is always tangible
C
It is a source of income
D
It is a liability for the business

What is meant by 'liabilities' in accounting?

A
Obligations or debts owed by the business to external parties
B
Assets owned by the business
C
Income earned by the business
D
The owner's equity in the business

Which of the following is considered a current asset?

A
Accounts receivable
B
Land
C
Buildings
D
Machinery

Which of the following accounting concepts ensures that revenues and expenses are matched in the period they occur?

A
Matching Principle
B
Revenue Recognition Principle
C
Cost Principle
D
Going Concern Principle

What is the term used to describe the amount a business owes to its suppliers for goods or services purchased on credit?

A
Accounts payable
B
Accounts receivable
C
Loans payable
D
Equity

What is 'capital' in accounting?

A
The amount of money invested by the owner into the business
B
The total assets of the business
C
Money owed to creditors
D
The total value of liabilities

What is the basic accounting equation?

A
Assets = Liabilities + Equity
B
Equity = Assets + Liabilities
C
Revenue = Expenses + Assets
D
Liabilities = Assets - Equity

Which of the following is a disadvantage of accounting?

A
It requires specialized knowledge
B
It is easy to do without training
C
It is not useful for business decision-making
D
It takes up no time

What is the primary objective of accounting standards?

A
To ensure consistency and transparency in financial reporting
B
To regulate the prices of goods and services
C
To promote competition in the market
D
To determine the salary of accountants