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4

If the totals of debit and credit columns of a Trial Balance are equal, it implies correctness of books of accounts.

A. True

B. False

Correct Answer :

B. False


Related Questions

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4

The short description of a transaction written at the end of a journal entry is known as _______________.

A. Summary

B. Narration

C. Memo

D. Info

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4

Sale of Office Furniture should be credited to Sales Account.

A. True

B. False

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4

A part of the profit distributed to the shareholders is known as

A. Reserve & Surplus

B. Retained Earnings

C. Dividend

D. Net Profit

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4

Fixed Assets are stated in the balance sheet at their market value.

A. True

B. False

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4

E. & O.E.

A. Errors & Omissions Expected

B. Error & Omission Expected

C. Errors & Omissions Entered

D. Errors & Omissions Excepted

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4

The basic unit of measurement of the accounting system is ______________.

A. Money

B. Finance

C. Weight

D. None of the above

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4

Cash is an example of

A. Personal Account

B. Real Account

C. Nominal Account

D. Both (a) and (b)

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4

Net Realisable Value of an asset means

A. The historical cost of the asset

B. Its sale value as on a particular date

C. Its written down value as on a particular date

D. None of the above

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4

Capital of the business is an example of external liability.

A. True

B. False

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4

All events are transactions but all transactions are not events.

A. True

B. False

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4

An expenditure intended to benefit the current period is revenue expenditure.

A. True

B. False

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4

Providing depreciation ensures sufficient cash for asset replacement.

A. True

B. False

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4

Capital + Long-term liabilities = Fixed Assets + Current Assets + Cash - Current Liabilities.

A. True

B. False

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4

Business ventures, which are started for a predefined period, are known as _____________ventures

A. Joint

B. Terminal

C. Treminable

D. Limited Period

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4

Transfer to General Reserve is a charge against

A. Trading Account

B. Profit and Loss Account

C. Profit and Loss Appropriation Account

D. Balance Sheet

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4

An expense incurred to keep the machine in working condition is a capital expenditure.

A. True

B. False

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4

Mr.Customer purchased goods from Mr.Seller on credit. This is a/an

A. Event

B. Transaction

C. Both (a) and (b)

D. None of the above

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4

Cash payments are recorded on the _______________ of the Cash Book.

A. Debit side

B. Credit side

C. Both sides

D. Any one side

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4

The account which can never have a credit balance is

A. Bank

B. Cash

C. Debtor

D. Creditor

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4

The life span of a company is dependent on the life span of the

A. Owner(s) of the company

B. Promoter of the company

C. Managing Director of the company

D. None of the above

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4

Bank Reconciliation statement is prepared to arrive at the Bank Balance.

A. True

B. False

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4

WDV stands for

A. Written Down Valuation

B. Write Down Value

C. Written Down Value

D. Writing Down Value

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4

The first step of accountancy is

A. Journal Entry

B. Ledger Posting

C. Balancing of Accounts

D. Trial Balance

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4

Contingent liability is an ascertained liability but its amount and due date are indeterminate.

A. True

B. False

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4

All credit sales are recorded in

A. Sales Day Book

B. Sales Credit Book

C. Sales Day Account

D. Sales Day Register

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4

Trial Balance is prepared after the preparation of Profit and Loss Account.

A. True

B. False

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4

Choose the odd one out

A. Wages

B. Stationery

C. Sales

D. Furniture

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4

Wages and Salaries is a charge against

A. Trading Account

B. Profit and Loss Account

C. Profit and Loss Appropriation Account

D. Balance Sheet

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4

Deferred Revenue Expenditure is current year's revenue expenditure to be paid in latter years.

A. True

B. False

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4

Depreciation cannot be provided in case of loss, in a financial year.

A. True

B. False