Question

1. State whether the following statements are True' or False' :
(a) Persoral transactions of an owner are not recorded in the books of accounts of his business. (True' or False)
(b) For all cash payments, Debit Vouchers' are prepared. (True' or False)
(c) Ledger is the principal book of accounts. (True' or False)
(d) As per accounting equation : Assets + Liabilities = Capital (True' or False)
(e) Assets acquired for long-term use are called current assets. (True' or False)
(f)Salary Outstanding Account' shows balance. (True' or False)
(g) Profit is the reward of business activities. (True' or False)
(h)Cost accounting is a branch of accounting. (True' or False)
(i) Decrease in asset is credited. (True' or False)
(j)Trial Balance in an account.(True' or False)

Answer 1

a) Personal transaction of an owner are not recorded in the books of accounts of his business-  

True, because business unit is considered separate and distinct from the owner of the business so personal transactions are not recorded.

b) For all cash payments debit vouchers are prepared-  

True, because debit vouchers are considered to be documentary evidence for all cash payments.

c) Ledger is the principal book of accounts-  

True, because all the transaction is finally recorded in ledger.

d) As per accounting equation: Assets + Liabilities = Capital

False, because Capital = Assets - Liabilities

e) Assets acquired for long term use are called current assets

False, because assets acquired for long term use are called fixed assets.

f) Salary outstanding account shows balance-

True, it is personal account it shows balance.

g) Profit is the reward of business activities-

True, Profit is considered to be rewards of business activities in economic terms.

h) Cost accounting is a branch of accounting-

True, Cost accounting is the main branch of accounting.

i) Decrease in asset is credited-  

True, A credit entry decreases asset account.

j) Trial balance is an account-

False, Trial balance shows all the ledger account balances.

Answer 2

Answer:

a) true

b) true

c) true

d) false .

e) false .

f) true.

g) true .

h) true .

i) true .

j) false .

Explanation: