Accounting - Study Mode
[#2311] Which of the following account does not start with the opening balance?
Correct Answer
(B) Receipt and payment A/c
[#2312] Which of the following statements are correct? 1. Analysis and interpretation of financial statements, is a function of accounting. 2. Profit and Loss account is prepared for ascertaining financial postition of a firm. 3. Goodwill is a wasting asset. 4. Balance Sheet is prepared for ascertaining financial position of a firm Select the correct answer
Correct Answer
(C) 1 and 4
[#2313] Which one of the following is an investment activity as per AS-7?
Correct Answer
(C) Purchase of fixed assets
[#2314] The real accounts are accounts of Assets, Liabilities and
Correct Answer
(C) Capital
Explanation
Solution: The real accounts are accounts of Assets, Liabilities and Capital. The accounting formula essentially shows that what the firm owns (its assets) is purchased by either what it owes (its liabilities) or by what its owners invest (its shareholders equity or capital).
[#2315] If a transaction is completely omitted from the books of accounts, will it effect the agreement of Trial Balance?
Correct Answer
(B) No
Explanation
Solution: If a transaction is completely omitted from the books of accounts, No it wont effect the agreement of Trial Balance.