Any type of error affects the agreement of Trial Balance.
True
False
Correct Answer :
B. False
Related Questions
Sale of Office Furniture should be credited to Sales Account.
True
False
An expense incurred to keep the machine in working condition is a capital expenditure.
True
False
Transfer to General Reserve is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
Net Realisable Value of an asset means
The historical cost of the asset
Its sale value as on a particular date
Its written down value as on a particular date
None of the above
In Double Entry System of Book Keeping, the total of Debit balances may not be equal to the total of Credit balances, in certain situations, even if transactions are recorded correctly.
True
False
The first step of accountancy is
Journal Entry
Ledger Posting
Balancing of Accounts
Trial Balance
All indirect expenses are charged against
Trading Account
Profit and Loss Account
Manufacturing Account
None of the above
Bank Reconciliation statement is prepared to arrive at the Bank Balance.
True
False
The short description of a transaction written at the end of a journal entry is known as _______________.
Summary
Narration
Memo
Info
Deferred Revenue Expenditure is current year's revenue expenditure to be paid in latter years.
True
False
Wages and Salaries is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
Trial Balance is prepared after the preparation of Profit and Loss Account.
True
False
Capital + Long-term liabilities = Fixed Assets + Current Assets + Cash - Current Liabilities.
True
False
Accrual concept implies accounting on cash basis.
True
False
All events are transactions but all transactions are not events.
True
False
HUF stands for
Hindu United Family
HIndi Undivided Family
Hindu Undivided Family
Hindu Uniform Family
The account which can never have a credit balance is
Bank
Cash
Debtor
Creditor
Mr.Customer purchased goods from Mr.Seller on credit. This is a/an
Event
Transaction
Both (a) and (b)
None of the above
The balance in the Cash Book represents net income.
True
False
Providing depreciation ensures sufficient cash for asset replacement.
True
False
All credit sales are recorded in
Sales Day Book
Sales Credit Book
Sales Day Account
Sales Day Register
Any type of error affects the agreement of Trial Balance.
True
False
The cost of a machine is Rs.6,00,000. The rate of depreciation is 10%. The depreciation for the 3rd year, on diminishing balance method, is
Rs.60,000
Rs.54,000
Rs.48,600
Rs.43,740
WIP stands for
Working Progress
What-in-Progress
Work-in-Progress
Works-in-Progress
WDV stands for
Written Down Valuation
Write Down Value
Written Down Value
Writing Down Value
Depreciation cannot be provided in case of loss, in a financial year.
True
False
Cash is an example of
Personal Account
Real Account
Nominal Account
Both (a) and (b)
Arrange the steps of accounting in sequential order -
(i) Trial Balance;
(ii) Journal Entry;
(iii) Balancing of Accounts;
(iv) Ledger Posting.
(i),(ii),(iii),(iv)
(ii),(iii),(iv),(i)
(ii),(iv),(i),(iii)
(ii),(iv),(iii),(i)
Expenditure, which result in acquisition of permanent assets, is a capital expenditure.
True
False
Cash payments are recorded on the _______________ of the Cash Book.
Debit side
Credit side
Both sides
Any one side