Class 11 Accountancy NCERT Solutions Chapter 2 Theory Base of Accounting: Free PDF Download
NCERT Solutions for Class 11 Accountancy Chapter-2 Theory Base of Accounting, which Vedantu provides, cover an easy explanation for all the topics of this chapter. The subject-matter experts at Vedantu have prepared these NCERT Solutions as per the latest CBSE guidelines. These solutions can be downloaded from Vedantu for free. The solutions will help students to revise every concept of this chapter and score well in the exams. Students can download the PDF with a single click of the link below.
Important Concepts Covered in Class 11 Accountancy Chapter 2
Generally Accepted Accounting Principles (GAAP)
Basic accounting concepts
Business entity concept
Money measurement concept
Going concern concept
Accounting period concept
Dual aspect concept
Revenue recognition concept
Full disclosure concept
FAQs on NCERT Solutions for Class 11 Accountancy Chapter 2 - Theory Base of Accounting
1. What is the basic accounting equation?
In order to gain proper knowledge about the subject of accounting, an individual must possess prior knowledge in the basic fundamental equations of accounting. One of the most fundamental parts of the balance sheet is the accounting equation. A company’s total assets amount to the total of its liabilities and the capital held by the shareholders. There are many equations in accounting that can help a student to identify various variables in the form of working capital, the value of assets, and liabilities. With the application of these principles, accounting can be made easier and more interactive in nature.
2. Why is it required to adopt a consistent method of preparation of financial statements?
Maintaining proper books of accounts is an essential factor that every independent accountant or business organisation should acknowledge. It is crucial to determine how the company is faring financially as making profits is the primary objective of any business organisation. This process can only be satisfied by effectively maintaining books of accounts consistently. Hence, consistency in bookkeeping is required. How consistent accounting practices help with the decision making of the company. For example, an organisation adopting one specific method of preparing the financial statements should continue using the same procedure and not use a different way after a duration to calculate the financial results of two years.
3. Why is it important to study Class 11 Accountancy Chapter 2 from NCERT Solutions?
Students can study Class 11 Accountancy Chapter 2 from NCERT Solutions for securing high marks in their exams. The NCERT Solutions can help students with the concepts given in Chapter 2 easily. They can get an insight into the important questions from the exam's point of view. All NCERT Solutions by Vedantu are given comprehensively so that students can understand all concepts quickly.
4. What are the principles of accounting?
Students need to understand the principles of accounting for scoring high marks in Class 11 Accountancy. Accounting principles mean the rules followed by accountants throughout the world when recording account statements. Accountants have to follow guidelines when recording financial transactions. It is important to follow the rules because an account statement is an important entity for the consumers to understand the financial condition of their company.
5. How can I prepare for Class 11 Accounting Chapter 2?
The best source used by most students of Class 11 for preparation of accounting is through NCERT Solutions that are available on the internet. Vedantu provides the best NCERT Solutions for Class 11 Accounting Chapter 2 at free of cost. NCERT Solutions for Class 11 Accounting are also available on the Vedantu app for free. Students can download the solutions for all chapters of Class 11 Accounting for exam preparation and for scoring high marks in their exams.
6. What is the use of NCERT Solutions for Class 11 Accounting?
NCERT Solutions for Class 11 Accounting are very useful for the students of Class 11. Students can revise all important concepts of Class 11 Accounting using NCERT Solutions. The NCERT Solutions cover all important questions given in the prescribed books by the CBSE board. It becomes easy for the students to revise the important concepts just before examination and score high marks. Even students of Class 11 can prepare short notes using NCERT Solutions for Class 11 Accounting.
7. Why is the importance of financial statement consistency?
It is important to prepare a financial statement consistently due to several reasons. Financial statements help to make a comparison of the performance of a company with competitors and it helps to assess the position of a country if a financial statement is prepared consistently. It also helps in comparing the situation of a company under two different periods. It helps to decide the future goals of a company. It also helps in a better comparison of the report.