Capital of the business is an example of external liability.
True
False
Correct Answer :
B. False
Related Questions
Fixed Assets are stated in the balance sheet at their market value.
True
False
HUF stands for
Hindu United Family
HIndi Undivided Family
Hindu Undivided Family
Hindu Uniform Family
Providing depreciation ensures sufficient cash for asset replacement.
True
False
Contingent liability is an ascertained liability but its amount and due date are indeterminate.
True
False
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)
A part of the profit distributed to the shareholders is known as
Reserve & Surplus
Retained Earnings
Dividend
Net Profit
E. & O.E.
Errors & Omissions Expected
Error & Omission Expected
Errors & Omissions Entered
Errors & Omissions Excepted
Transfer to General Reserve is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
Copyright is an example of
Real Account
Asset
Intangible Asset
All of the above
Bank Reconciliation statement is prepared to arrive at the Bank Balance.
True
False
All credit sales are recorded in
Sales Day Book
Sales Credit Book
Sales Day Account
Sales Day Register
Cash is an example of
Personal Account
Real Account
Nominal Account
Both (a) and (b)
Sale of Office Furniture should be credited to Sales Account.
True
False
Business ventures, which are started for a predefined period, are known as _____________ventures
Joint
Terminal
Treminable
Limited Period
Which of the following events is not a transaction?
Mr. Employer paid salary of Rs.9,000 to Mr. Employee.
Rahul sold his bicycle to Rohan for Rs.600.
Abhijeet gifted a book, priced at Rs.800, to Amit.
None of the above.
The basic unit of measurement of the accounting system is ______________.
Money
Finance
Weight
None of the above
Accrual concept implies accounting on cash basis.
True
False
Choose the odd one out
Wages
Stationery
Sales
Furniture
All events are transactions but all transactions are not events.
True
False
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
Any type of error affects the agreement of Trial Balance.
True
False
Expenditure, which result in acquisition of permanent assets, is a capital expenditure.
True
False
According to the Concept of Conservatism, an accountant should
Recognize all losses and anticipate no gains
Recognize all gains and anticipate no losses
Recognize and anticipate both gains and losses
Both (b) and (c)
Depreciation is not charged on _______________.
New assets
Land
Building
None of the above
If the totals of debit and credit columns of a Trial Balance are equal, it implies correctness of books of accounts.
True
False
An expense incurred to keep the machine in working condition is a capital expenditure.
True
False
The short description of a transaction written at the end of a journal entry is known as _______________.
Summary
Narration
Memo
Info
The aggregate of direct material, direct labour and direct expenses is known as
Product Cost
Manufacturing Cost
Prime Cost
Production Cost
Cash payments are recorded on the _______________ of the Cash Book.
Debit side
Credit side
Both sides
Any one side