Académique Documents
Professionnel Documents
Culture Documents
Question
Furniture account will always have a ________ balance.
Correct Answer
Debit
Your Answer
Nil
True/False
Question
The phrase 'By Balance c/d.' written on the credit side of the rent account,
indicates credit balance for this account.
Correct Answer
False
Your Answer
False
True/False
Question
Accounting refers to the process of analyzing & interpreting the information
already recorded in the books of accounts.
Correct Answer
True
Your Answer
True
True/False
Question
Standard costs are used for external reporting.
Correct Answer
False
Your Answer
False
True/False
Question
It is said that the income statement represents wealth increase /decrease for the
organisation.
Correct Answer
True
Your Answer
False
True/False
Question
While preparing the labour cost budget, factors such as overtime working or
night shift working may be ignored.
Correct Answer
False
Your Answer
False
True/False
Question
Bank reconciliation statement must be prepared before the preparation of profit
and loss account and balance sheet.
Correct Answer
True
Your Answer
False
True/False
Question
Predetermined rate of absorption of overheads helps in quick preparation of cost
estimates and quoting prices.
Correct Answer
True
Your Answer
True
True/False
Question
Accounting is an art of recording, classifying & summarizing in a significant
manner.
Correct Answer
True
Your Answer
True
True/False
Question
Goods sent to the customers on approval basis should be treated as sales.
Correct Answer
False
Your Answer
False
True/False
Question
Profitability statement indicates the amount of assets & liabilities.
Correct Answer
False
Your Answer
True
True/False
Question
A business is an activity carried out with the intention of earning the profit.
Correct Answer
True
Your Answer
True
True/False
Question
The ideal budget period for a company engaged in generation and distribution of
electricity is one year.
Correct Answer
False
Your Answer
False
True/False
Question
According to Reducing Balance Method, the depreciation is provided at a
predetermined percentage on the balance of cost of asset after deduction of the
depreciation previously charged.
Correct Answer
True
Your Answer
True
True/False
Question
A very wide scope of Management Accounting is the limitation by itself.
Correct Answer
True
Your Answer
True
True/False
Question
Balance sheet indicates the financial status of the business at given period.
Correct Answer
True
Your Answer
True
True/False
Question
Control on purchase of material is exercised by the storekeeper.
Correct Answer
False
Your Answer
True