TRUE OR FALSE QUESTIONS
State with reasons whether the following statements are True or False:
- Depreciation is an amortised expenditure.
- Prudence is a concept to recognise unrealised profits and not losses.
- Pre-operative expenses are revenue expenses.
- Reducing Balance Method of Depreciation is followed to have a uniform charge for Depreciation and Repairs and Maintenance together.
- Errors of Principle will affect Trial Balance.
- Heavy expenditure incurred on advertisement at the time of introducing a new product is a Deferred Revenue Expenditure.
- When we buy furniture on cash, we debit Cash Account.
- Rectification of mistake is necessary to tally the Trial Balance.
- The rule of Gamer vs Muray is applied in settling the customer dues. ...
Get Financial Accounting now with O’Reilly online learning.
O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.