Trial Balance is prepared after the preparation of Profit and Loss Account.
True
False
Correct Answer :
B. False
Related Questions
The basic unit of measurement of the accounting system is ______________.
Money
Finance
Weight
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
Expenditure, which result in acquisition of permanent assets, is a capital expenditure.
True
False
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)
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.
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 accounts of a company may be maintained using Single Entry System of Book Keeping also.
True
False
Any type of error affects the agreement of Trial Balance.
True
False
All indirect expenses are charged against
Trading Account
Profit and Loss Account
Manufacturing Account
None of the above
Providing depreciation ensures sufficient cash for asset replacement.
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
The short description of a transaction written at the end of a journal entry is known as _______________.
Summary
Narration
Memo
Info
The aggregate of direct material, direct labour and direct expenses is known as
Product Cost
Manufacturing Cost
Prime Cost
Production Cost
The account which can never have a credit balance is
Bank
Cash
Debtor
Creditor
Choose the odd one out
Wages
Stationery
Sales
Furniture
WDV stands for
Written Down Valuation
Write Down Value
Written Down Value
Writing Down Value
Fixed Assets are stated in the balance sheet at their market value.
True
False
An expense incurred to keep the machine in working condition is a capital expenditure.
True
False
All events are transactions but all transactions are not events.
True
False
WIP stands for
Working Progress
What-in-Progress
Work-in-Progress
Works-in-Progress
Capital + Long-term liabilities = Fixed Assets + Current Assets + Cash - Current Liabilities.
True
False
Accrual concept implies accounting on cash basis.
True
False
The balance in the Cash Book represents net income.
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
Contingent liability is an ascertained liability but its amount and due date are indeterminate.
True
False
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)
Capital of the business is an example of external liability.
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