If the totals of debit and credit columns of a Trial Balance are equal, it implies correctness of books of accounts.
True
False
Correct Answer :
B. False
Related Questions
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
Bank Reconciliation statement is prepared to arrive at the Bank Balance.
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
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 account which can never have a credit balance is
Bank
Cash
Debtor
Creditor
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
Wages and Salaries is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
Depreciation is not charged on _______________.
New assets
Land
Building
None of the above
All indirect expenses are charged against
Trading Account
Profit and Loss Account
Manufacturing Account
None of the above
Capital of the business is an example of external liability.
True
False
Accrual concept implies accounting on cash basis.
True
False
Providing depreciation ensures sufficient cash for asset replacement.
True
False
HUF stands for
Hindu United Family
HIndi Undivided Family
Hindu Undivided Family
Hindu Uniform Family
Which of the following equation(s) is(are) true
Assets = Liabilities + Capital
Assets - Capital = Liabilities
Both (a) and (b)
None of the above
Business ventures, which are started for a predefined period, are known as _____________ventures
Joint
Terminal
Treminable
Limited Period
All credit sales are recorded in
Sales Day Book
Sales Credit Book
Sales Day Account
Sales Day Register
Capital + Long-term liabilities = Fixed Assets + Current Assets + Cash - Current Liabilities.
True
False
WIP stands for
Working Progress
What-in-Progress
Work-in-Progress
Works-in-Progress
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.
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)
An expenditure intended to benefit the current period is revenue expenditure.
True
False
The aggregate of direct material, direct labour and direct expenses is known as
Product Cost
Manufacturing Cost
Prime Cost
Production Cost
Fixed Assets are stated in the balance sheet at their market value.
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
Transfer to General Reserve is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
Deferred Revenue Expenditure is current year's revenue expenditure to be paid in latter years.
True
False
The short description of a transaction written at the end of a journal entry is known as _______________.
Summary
Narration
Memo
Info
Contingent liability is an ascertained liability but its amount and due date are indeterminate.
True
False
Choose the odd one out
Wages
Stationery
Sales
Furniture