Depreciation cannot be provided in case of loss, in a financial year.
True
False
Correct Answer :
B. False
Related Questions
The short description of a transaction written at the end of a journal entry is known as _______________.
Summary
Narration
Memo
Info
Cash payments are recorded on the _______________ of the Cash Book.
Debit side
Credit side
Both sides
Any one side
Any type of error affects the agreement of Trial Balance.
True
False
Sale of Office Furniture should be credited to Sales Account.
True
False
Accrual concept implies accounting on cash basis.
True
False
Fixed Assets are stated in the balance sheet at their market value.
True
False
An expenditure intended to benefit the current period is revenue expenditure.
True
False
The life span of a company is dependent on the life span of the
Owner(s) of the company
Promoter of the company
Managing Director of the company
None of the above
Expenditure, which result in acquisition of permanent assets, is a capital expenditure.
True
False
If the totals of debit and credit columns of a Trial Balance are equal, it implies correctness of books of accounts.
True
False
Bank Reconciliation statement is prepared to arrive at the Bank Balance.
True
False
A part of the profit distributed to the shareholders is known as
Reserve & Surplus
Retained Earnings
Dividend
Net Profit
The account which can never have a credit balance is
Bank
Cash
Debtor
Creditor
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
WIP stands for
Working Progress
What-in-Progress
Work-in-Progress
Works-in-Progress
Goodwill is not a fictitious asset.
True
False
Mr.Customer purchased goods from Mr.Seller on credit. This is a/an
Event
Transaction
Both (a) and (b)
None of the above
An expense incurred to keep the machine in working condition is a capital expenditure.
True
False
The basic unit of measurement of the accounting system is ______________.
Money
Finance
Weight
None of the above
Capital + Long-term liabilities = Fixed Assets + Current Assets + Cash - Current Liabilities.
True
False
All indirect expenses are charged against
Trading Account
Profit and Loss Account
Manufacturing Account
None of the above
Transfer to General Reserve is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
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
Choose the odd one out
Wages
Stationery
Sales
Furniture
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
Cash is an example of
Personal Account
Real Account
Nominal Account
Both (a) and (b)
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)
The aggregate of direct material, direct labour and direct expenses is known as
Product Cost
Manufacturing Cost
Prime Cost
Production Cost