Edzy
AI TutorResourcesToolsCompareBuy
SearchDownload AppLogin
Edzy

Edzy for Classes 6-12

Edzy is a personal AI tutor for CBSE and State Board students, with curriculum-aligned guidance, practice, revision, and study plans that adapt to each learner.

  • Email: always@edzy.ai
  • Phone: +91 96256 68472
  • WhatsApp: +91 96256 68472
  • Address: Sector 63, Gurgaon, Haryana

Follow Edzy

Browse by Class

  • CBSE Class 6
  • CBSE Class 7
  • CBSE Class 8
  • CBSE Class 9
  • CBSE Class 10
  • CBSE Class 11
  • CBSE Class 12
Explore the CBSE resource hub

Explore Edzy

  • Study Resources
  • Free Study Tools
  • Best Apps for Board Exams
  • Edzy vs ChatGPT
  • About Us
  • Why We Built Edzy
  • Blog
  • CBSE AI Tutor

Support & Legal

  • Help & FAQs
  • Accessibility
  • Privacy Policy
  • Terms & Conditions
  • Refund Policy
  • Cookie Policy
  • Site Directory

© 2026 Edzy. All rights reserved.

Curriculum-aligned learning paths for students in Classes 6-12.

CBSE
Class 11
Accountancy
Accountancy - II
Financial Statements - I

Question Bank

Practice Hub

Question Bank: Financial Statements - I

This chapter explains the preparation and significance of financial statements, including trading and profit and loss accounts and balance sheets.

Structured practice
Question Practice

Practice chapter questions in a cleaner, exam-ready flow

Start with curated question sets, move into full module views when needed, and keep discovering related practice without losing your place in the chapter.

Question Bank - Financial Statements - I

View all (101)
Q1.

Which of the following is NOT included in the financial statements?

Single Answer MCQ
Q-00053447
View explanation
Q2.

The primary purpose of a Trading Account is to calculate which of the following?

Single Answer MCQ
Q-00053448
View explanation
Q3.

In a Profit and Loss Account, which of the following is deducted from Gross Profit to find Operating Profit?

Single Answer MCQ
Q-00053449
View explanation
Q4.

Which financial statement reflects a company's financial position at a specific date?

Single Answer MCQ
Q-00053450
View explanation
Q5.

What is the typical order for calculating profits in the Profit and Loss Account?

Single Answer MCQ
Q-00053451
View explanation
Q6.

When calculating Operating Profit, which type of income or expense should be excluded?

Single Answer MCQ
Q-00053452
View explanation
Q7.

If the Gross Profit is Rs. 50,000 and Operating Expenses are Rs. 20,000, what is the Operating Profit?

Single Answer MCQ
Q-00053453
View explanation
Q8.

What is the result when sales exceed total costs?

Single Answer MCQ
Q-00053454
View explanation
Q9.

Closing stock is included in which part of the financial statements?

Single Answer MCQ
Q-00053455
View explanation
Q10.

Which statement is NOT correct regarding financial statements?

Single Answer MCQ
Q-00053456
View explanation
Q11.

Who is considered an internal stakeholder interested in the profitability of a business?

Single Answer MCQ
Q-00053457
View explanation
Q12.

If a company has a gross profit of Rs. 100,000 and the only expense is Rs. 20,000, what is the net profit?

Single Answer MCQ
Q-00053458
View explanation
Q13.

Which of the following is a primary information requirement for external stakeholders?

Single Answer MCQ
Q-00053459
View explanation
Q14.

What does a Trial Balance ensure?

Single Answer MCQ
Q-00053460
View explanation
Q15.

Why do prospective owners require financial information from a business?

Single Answer MCQ
Q-00053461
View explanation
Q16.

Which of the following is subtracted from Gross Profit to determine Net Profit?

Single Answer MCQ
Q-00053462
View explanation
Q17.

What information do current owners primarily seek from financial statements?

Single Answer MCQ
Q-00053463
View explanation
Q18.

A company’s financial year-end is March 31; the trading account reflects activities until this date. What does this signify?

Single Answer MCQ
Q-00053464
View explanation
Q19.

What is the role of the government as a stakeholder?

Single Answer MCQ
Q-00053465
View explanation
Q20.

Which of the following is NOT a part of Cost of Goods Sold?

Single Answer MCQ
Q-00053466
View explanation
Q21.

A bank primarily seeks which of the following when reviewing a business's financial information?

Single Answer MCQ
Q-00053467
View explanation
Q22.

Which statement best describes a common need of all internal users of financial information?

Single Answer MCQ
Q-00053468
View explanation
Q23.

What type of information would a customer require from a business?

Single Answer MCQ
Q-00053469
View explanation
Q24.

Which group is least likely to be considered an internal stakeholder?

Single Answer MCQ
Q-00053470
View explanation
Q25.

An example of a non-monetary stake in a business would include:

Single Answer MCQ
Q-00053471
View explanation
Q26.

Why is it crucial for managers to analyze financial statements?

Single Answer MCQ
Q-00053472
View explanation
Q27.

What distinct type of information does the government require from businesses?

Single Answer MCQ
Q-00053473
View explanation
Q28.

Which aspect is essential for banks evaluating a business?

Single Answer MCQ
Q-00053474
View explanation
Q29.

Which type of financial information do investors prioritize to assess potential returns?

Single Answer MCQ
Q-00053475
View explanation
Q30.

What is the primary purpose of a Trading and Profit and Loss Account?

Single Answer MCQ
Q-00053476
View explanation
Q31.

Which of the following is NOT included in the Trading Account?

Single Answer MCQ
Q-00053477
View explanation
Q32.

What represents the formula for calculating Gross Profit?

Single Answer MCQ
Q-00053478
View explanation
Q33.

If an enterprise has a Gross Profit of `40,000 and Expenses totaling `30,000, what is the Net Profit?

Single Answer MCQ
Q-00053479
View explanation
Q34.

Which of the following items is generally found on the credit side of the Trading Account?

Single Answer MCQ
Q-00053480
View explanation
Q35.

How is Gross Loss reflected in financial statements?

Single Answer MCQ
Q-00053481
View explanation
Q36.

In a Trading and Profit and Loss Account, which of the following is classified as an expense?

Single Answer MCQ
Q-00053482
View explanation
Q37.

Which item is typically reported in the Profit and Loss Account rather than the Trading Account?

Single Answer MCQ
Q-00053483
View explanation
Q38.

If the Trading Account shows a Gross Profit of `50,000, what impact does this have on the Profit and Loss Account?

Single Answer MCQ
Q-00053484
View explanation
Q39.

What happens if the sales figure is greater than the total purchases and expenses?

Single Answer MCQ
Q-00053485
View explanation
Q40.

If total expenses amount to `120,000 and revenue earned is `100,000, what is the Gross Loss?

Single Answer MCQ
Q-00053486
View explanation
Q41.

If the Cost of Goods Sold is determined to be `70,000 and Sales were `100,000, what is the Gross Profit?

Single Answer MCQ
Q-00053487
View explanation
Q42.

If a company reports a Net Profit of `5,000, which of the following could represent its Gross Profit if total expenses are `20,000?

Single Answer MCQ
Q-00053488
View explanation
Q43.

Which of the following can lead to adjustments in the Gross Profit figure during the accounting period?

Single Answer MCQ
Q-00053489
View explanation
Q44.

A company has a Gross Profit of `50,000 and pays `10,000 in interest. How does this affect Net Profit?

Single Answer MCQ
Q-00053490
View explanation
Q45.

What term describes expenditures that benefit the business for more than one accounting period?

Single Answer MCQ
Q-00053491
View explanation
Q46.

Which of the following is an example of a revenue receipt?

Single Answer MCQ
Q-00053492
View explanation
Q47.

If a business purchases a new vehicle for sales purposes, how is this classified?

Single Answer MCQ
Q-00053493
View explanation
Q48.

What is a primary consequence of misclassifying revenue as capital expenditure?

Single Answer MCQ
Q-00053494
View explanation
Q49.

A company's payment for office rent is categorized as which type of expenditure?

Single Answer MCQ
Q-00053495
View explanation
Q50.

Which of the following would NOT be considered a capital receipt?

Single Answer MCQ
Q-00053496
View explanation
Q51.

Why is it crucial to differentiate between capital and revenue items in accounting?

Single Answer MCQ
Q-00053497
View explanation
Q52.

Which of the following is NOT a characteristic of capital expenditure?

Single Answer MCQ
Q-00053498
View explanation
Q53.

What term describes expenses incurred during day-to-day business operations?

Single Answer MCQ
Q-00053499
View explanation
Q54.

Which type of expense would include the purchase of new machinery to be used for production?

Single Answer MCQ
Q-00053500
View explanation
Q55.

A company repairs its old machinery. How should this expense be classified?

Single Answer MCQ
Q-00053501
View explanation
Q56.

What type of receipt results from the selling of an old vehicle?

Single Answer MCQ
Q-00053502
View explanation
Q57.

Misclassifying capital expenditure as revenue expenditure typically results in which of the following?

Single Answer MCQ
Q-00053503
View explanation
Q58.

What distinguishes a revenue expenditure from a capital expenditure?

Single Answer MCQ
Q-00053504
View explanation
Q59.

An owner contributes additional funds to the business. This is recorded as what type of transaction?

Single Answer MCQ
Q-00053505
View explanation
Q60.

What does Operating Profit (EBIT) represent?

Single Answer MCQ
Q-00053506
View explanation
Q61.

Which of the following is NOT included in the calculation of Operating Profit?

Single Answer MCQ
Q-00053507
View explanation
Q62.

How do non-operating expenses affect Operating Profit?

Single Answer MCQ
Q-00053508
View explanation
Q63.

If the Net Profit is ₹15,000 and Non-operating expenses are ₹2,000, what is the Operating Profit?

Single Answer MCQ
Q-00053509
View explanation
Q64.

When calculating Operating Profit, which of the following should be excluded?

Single Answer MCQ
Q-00053510
View explanation
Q65.

Which is the correct formula for Operating Profit according to the provided information?

Single Answer MCQ
Q-00053511
View explanation
Q66.

In a business with total revenue of ₹100,000 and operating expenses of ₹70,000, what is the Operating Profit?

Single Answer MCQ
Q-00053512
View explanation
Q67.

Which type of transactions should NOT be included when calculating Operating Profit?

Single Answer MCQ
Q-00053513
View explanation
Q68.

What is the effect of abnormal losses on Operating Profit?

Single Answer MCQ
Q-00053514
View explanation
Q69.

In a scenario where Net Profit is ₹25,000, Non-operating income is ₹5,000, and Non-operating expenses are ₹3,000, what is the resulting Operating Profit?

Single Answer MCQ
Q-00053515
View explanation
Q70.

Which of the following statements regarding Operating Profit is TRUE?

Single Answer MCQ
Q-00053516
View explanation
Q71.

Consider a company with sales of ₹200,000, cost of goods sold of ₹120,000, and other operating expenses totaling ₹50,000. What is the Operating Profit?

Single Answer MCQ
Q-00053517
View explanation
Q72.

If a business operates at a loss before considering non-operating incomes, how is that affected by non-operating incomes in the Operating Profit calculation?

Single Answer MCQ
Q-00053518
View explanation
Q73.

What term describes the profit that excludes non-operating items and reflects core business operations?

Single Answer MCQ
Q-00053519
View explanation
Q74.

What does a balance sheet represent?

Single Answer MCQ
Q-00053520
View explanation
Q75.

Which of the following items is typically found on the asset side of a balance sheet?

Single Answer MCQ
Q-00053521
View explanation
Q76.

Which of the following equations represents the basic accounting equation applicable to a balance sheet?

Single Answer MCQ
Q-00053522
View explanation
Q77.

Which of the following is NOT a characteristic of a balance sheet?

Single Answer MCQ
Q-00053523
View explanation
Q78.

What type of account is capital shown as in a balance sheet?

Single Answer MCQ
Q-00053524
View explanation
Q79.

Which of the following is usually considered a current liability?

Single Answer MCQ
Q-00053525
View explanation
Q80.

Which section of the balance sheet would you find 'retained earnings'?

Single Answer MCQ
Q-00053526
View explanation
Q81.

When is the balance sheet typically prepared?

Single Answer MCQ
Q-00053527
View explanation
Q82.

What does a decrease in a company's liabilities imply about its balance sheet?

Single Answer MCQ
Q-00053528
View explanation
Q83.

In which section would 'accumulated depreciation' appear in the balance sheet?

Single Answer MCQ
Q-00053529
View explanation
Q84.

Which of the following is the best description of a 'current asset'?

Single Answer MCQ
Q-00053530
View explanation
Q85.

Which entry is made when an asset is purchased?

Single Answer MCQ
Q-00053531
View explanation
Q86.

Which document is prepared to verify the accuracy of the balance sheet?

Single Answer MCQ
Q-00053532
View explanation
Q87.

What happens to the balance sheet if a company issues new shares?

Single Answer MCQ
Q-00053533
View explanation
Q88.

If a company’s total liabilities equal its total assets, what does this imply about its equity?

Single Answer MCQ
Q-00053534
View explanation
Q89.

Which financial implications arise if current liabilities exceed current assets?

Single Answer MCQ
Q-00053535
View explanation
Q90.

What is the purpose of an opening entry in accounting?

Single Answer MCQ
Q-00053550
View explanation
Q91.

Which account is debited when making an opening entry for furniture?

Single Answer MCQ
Q-00053551
View explanation
Q92.

In an opening entry, why is the Capital A/c credited?

Single Answer MCQ
Q-00053552
View explanation
Q93.

What is the opening entry for a business with bank balance of $5,000?

Single Answer MCQ
Q-00053553
View explanation
Q94.

Which of the following accounts is typically NOT included in the opening entry?

Single Answer MCQ
Q-00053554
View explanation
Q95.

An opening entry is made primarily to transfer which type of information?

Single Answer MCQ
Q-00053555
View explanation
Q96.

When recording the opening entry, the total debits must equal the total credits. This relates to which accounting principle?

Single Answer MCQ
Q-00053556
View explanation
Q97.

What will be the effect on the accounting equation when an opening entry is made?

Single Answer MCQ
Q-00053557
View explanation
Q98.

If total liabilities are $10,000 and total assets are $15,000, what is equity as per the opening entry?

Single Answer MCQ
Q-00053558
View explanation
Q99.

What would be recorded in the opening entry for an outstanding loan of $2,000?

Single Answer MCQ
Q-00053559
View explanation
Q100.

When a business owner starts a new accounting period, how are the balances treated in the opening entry?

Single Answer MCQ
Q-00053560
View explanation
Q101.

Which of the following represents a correctly formatted opening entry for liabilities?

Single Answer MCQ
Q-00053561
View explanation
Learn Better On The App
Consistency made easier

Smart Study Reminders

Stay on track with timely nudges that help you keep your study streak alive.

Daily reminders
Better follow-through

Faster access to practice, revision, and daily study flow.

Edzy mobile app preview