Expenditure, which result in acquisition of permanent assets, is a capital expenditure.
True
False
Correct Answer :
A. True
Related Questions
An expenditure intended to benefit the current period is revenue expenditure.
True
False
The first step of accountancy is
Journal Entry
Ledger Posting
Balancing of Accounts
Trial Balance
WDV stands for
Written Down Valuation
Write Down Value
Written Down Value
Writing Down Value
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)
Business ventures, which are started for a predefined period, are known as _____________ventures
Joint
Terminal
Treminable
Limited Period
Goodwill is not a fictitious asset.
True
False
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
Sale of Office Furniture should be credited to Sales Account.
True
False
Transfer to General Reserve is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
Choose the odd one out
Wages
Stationery
Sales
Furniture
WIP stands for
Working Progress
What-in-Progress
Work-in-Progress
Works-in-Progress
All events are transactions but all transactions are not events.
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
Capital of the business is an example of external liability.
True
False
Bank Reconciliation statement is prepared to arrive at the Bank Balance.
True
False
All indirect expenses are charged against
Trading Account
Profit and Loss Account
Manufacturing Account
None of the above
Which of the following equation(s) is(are) true
Assets = Liabilities + Capital
Assets - Capital = Liabilities
Both (a) and (b)
None of the above
Cash payments are recorded on the _______________ of the Cash Book.
Debit side
Credit side
Both sides
Any one side
E. & O.E.
Errors & Omissions Expected
Error & Omission Expected
Errors & Omissions Entered
Errors & Omissions Excepted
Deferred Revenue Expenditure is current year's revenue expenditure to be paid in latter years.
True
False
The balance in the Cash Book represents net income.
True
False
A part of the profit distributed to the shareholders is known as
Reserve & Surplus
Retained Earnings
Dividend
Net Profit
HUF stands for
Hindu United Family
HIndi Undivided Family
Hindu Undivided Family
Hindu Uniform Family
Cash is an example of
Personal Account
Real Account
Nominal Account
Both (a) and (b)
The accounts of a company may be maintained using Single Entry System of Book Keeping also.
True
False
Depreciation is not charged on _______________.
New assets
Land
Building
None of the above
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)
Accrual concept implies accounting on cash basis.
True
False
The cost of a machine is Rs.5,70,000. Its scrap value is Rs.25,000 and useful life is 10 years. The depreciation amount under Straight Line Method is
Rs.57,000
Rs.59,500
Rs.54,500
Rs.50,000
Trial Balance is prepared after the preparation of Profit and Loss Account.
True
False