Which of the following equation(s) is(are) true
Assets = Liabilities + Capital
Assets - Capital = Liabilities
Both (a) and (b)
None of the above
Correct Answer :
C. Both (a) and (b)
Related Questions
Transfer to General Reserve is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
HUF stands for
Hindu United Family
HIndi Undivided Family
Hindu Undivided Family
Hindu Uniform Family
Fixed Assets are stated in the balance sheet at their market value.
True
False
Cash is an example of
Personal Account
Real Account
Nominal Account
Both (a) and (b)
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
Depreciation cannot be provided in case of loss, in a financial year.
True
False
WDV stands for
Written Down Valuation
Write Down Value
Written Down Value
Writing Down Value
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
Business ventures, which are started for a predefined period, are known as _____________ventures
Joint
Terminal
Treminable
Limited Period
Wages and Salaries is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
Accrual concept implies accounting on cash basis.
True
False
Any type of error affects the agreement of Trial Balance.
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
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
The short description of a transaction written at the end of a journal entry is known as _______________.
Summary
Narration
Memo
Info
An expense incurred to keep the machine in working condition is a capital expenditure.
True
False
Copyright is an example of
Real Account
Asset
Intangible Asset
All of the above
Mr.Customer purchased goods from Mr.Seller on credit. This is a/an
Event
Transaction
Both (a) and (b)
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)
Choose the odd one out
Wages
Stationery
Sales
Furniture
Trial Balance is prepared after the preparation of Profit and Loss Account.
True
False
Depreciation is not charged on _______________.
New assets
Land
Building
None of the above
If the totals of debit and credit columns of a Trial Balance are equal, it implies correctness of books of accounts.
True
False
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.
Capital + Long-term liabilities = Fixed Assets + Current Assets + Cash - Current Liabilities.
True
False
All events are transactions but all transactions are not events.
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
Contingent liability is an ascertained liability but its amount and due date are indeterminate.
True
False
The account which can never have a credit balance is
Bank
Cash
Debtor
Creditor