Providing depreciation ensures sufficient cash for asset replacement.
True
False
Correct Answer :
A. True
Related Questions
Accrual concept implies accounting on cash basis.
True
False
All indirect expenses are charged against
Trading Account
Profit and Loss Account
Manufacturing Account
None of the above
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
All credit sales are recorded in
Sales Day Book
Sales Credit Book
Sales Day Account
Sales Day Register
Depreciation is not charged on _______________.
New assets
Land
Building
None of the above
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)
Any type of error affects the agreement of Trial Balance.
True
False
Trial Balance is prepared after the preparation of Profit and Loss Account.
True
False
The balance in the Cash Book represents net income.
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
E. & O.E.
Errors & Omissions Expected
Error & Omission Expected
Errors & Omissions Entered
Errors & Omissions Excepted
Cash is an example of
Personal Account
Real Account
Nominal Account
Both (a) and (b)
Cash payments are recorded on the _______________ of the Cash Book.
Debit side
Credit side
Both sides
Any one side
An expenditure intended to benefit the current period is revenue expenditure.
True
False
Copyright is an example of
Real Account
Asset
Intangible Asset
All of the above
Providing depreciation ensures sufficient cash for asset replacement.
True
False
Which of the following equation(s) is(are) true
Assets = Liabilities + Capital
Assets - Capital = Liabilities
Both (a) and (b)
None of the above
The aggregate of direct material, direct labour and direct expenses is known as
Product Cost
Manufacturing Cost
Prime Cost
Production Cost
The first step of accountancy is
Journal Entry
Ledger Posting
Balancing of Accounts
Trial Balance
Depreciation cannot be provided in case of loss, in a financial year.
True
False
Capital + Long-term liabilities = Fixed Assets + Current Assets + Cash - Current Liabilities.
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
Wages and Salaries 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
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
Goodwill is not a fictitious asset.
True
False
WDV stands for
Written Down Valuation
Write Down Value
Written Down Value
Writing Down Value
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