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

A. True

B. False

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  1. If the totals of debit and credit columns of a Trial Balance are equal, it implies correctness of books…
  2. The first step of accountancy is
  3. Providing depreciation ensures sufficient cash for asset replacement.
  4. According to the Concept of Conservatism, an accountant should
  5. Transfer to General Reserve is a charge against
  6. Which of the following equation(s) is(are) true
  7. The cost of a machine is Rs.5,70,000. Its scrap value is Rs.25,000 and useful life is 10 years. The…
  8. Wages and Salaries is a charge against
  9. All events are transactions but all transactions are not events.
  10. Bank Reconciliation statement is prepared to arrive at the Bank Balance.
  11. The account which can never have a credit balance is
  12. The balance in the Cash Book represents net income.
  13. Fixed Assets are stated in the balance sheet at their market value.
  14. Arrange the steps of accounting in sequential order - (i) Trial Balance; (ii) Journal Entry; (iii) Balancing…
  15. Net Realisable Value of an asset means
  16. In Double Entry System of Book Keeping, the total of Debit balances may not be equal to the total of…
  17. All credit sales are recorded in
  18. The basic unit of measurement of the accounting system is ______________.
  19. Depreciation is not charged on _______________.
  20. Capital of the business is an example of external liability.
  21. The aggregate of direct material, direct labour and direct expenses is known as
  22. Accrual concept implies accounting on cash basis.
  23. Depreciation cannot be provided in case of loss, in a financial year.
  24. Cash payments are recorded on the _______________ of the Cash Book.
  25. Mr.Customer purchased goods from Mr.Seller on credit. This is a/an
  26. A part of the profit distributed to the shareholders is known as
  27. Business ventures, which are started for a predefined period, are known as _____________ventures
  28. WDV stands for
  29. An expense incurred to keep the machine in working condition is a capital expenditure.
  30. The cost of a machine is Rs.6,00,000. The rate of depreciation is 10%. The depreciation for the 3rd…