Capital + Long-term liabilities = Fixed Assets + Current Assets + Cash - Current Liabilities.

A. True

B. False

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  1. The short description of a transaction written at the end of a journal entry is known as _______________.
  2. In Double Entry System of Book Keeping, the total of Debit balances may not be equal to the total of…
  3. E. & O.E.
  4. The aggregate of direct material, direct labour and direct expenses is known as
  5. Cash is an example of
  6. The account which can never have a credit balance is
  7. The first step of accountancy is
  8. Net Realisable Value of an asset means
  9. An expense incurred to keep the machine in working condition is a capital expenditure.
  10. Capital of the business is an example of external liability.
  11. Copyright is an example of
  12. Fixed Assets are stated in the balance sheet at their market value.
  13. WIP stands for
  14. All indirect expenses are charged against
  15. Any type of error affects the agreement of Trial Balance.
  16. Trial Balance is prepared after the preparation of Profit and Loss Account.
  17. Transfer to General Reserve is a charge against
  18. Deferred Revenue Expenditure is current year's revenue expenditure to be paid in latter years.
  19. Sale of Office Furniture should be credited to Sales Account.
  20. Mr.Customer purchased goods from Mr.Seller on credit. This is a/an
  21. The cost of a machine is Rs.6,00,000. The rate of depreciation is 10%. The depreciation for the 3rd…
  22. All credit sales are recorded in
  23. The cost of a machine is Rs.5,70,000. Its scrap value is Rs.25,000 and useful life is 10 years. The…
  24. The accounts of a company may be maintained using Single Entry System of Book Keeping also.
  25. Depreciation cannot be provided in case of loss, in a financial year.
  26. The balance in the Cash Book represents net income.
  27. According to the Concept of Conservatism, an accountant should
  28. Bank Reconciliation statement is prepared to arrive at the Bank Balance.
  29. Expenditure, which result in acquisition of permanent assets, is a capital expenditure.
  30. If the totals of debit and credit columns of a Trial Balance are equal, it implies correctness of books…