Question

(25) has any effect SECTION TRUE OR FALSE QUESTION (40 Marks) The following questions indicate if it's True or False. Each question carries 2 Marks 1. Accounting Principle is general law or rule followed in the preparation of financial statements 2. Usefulness, objectivity and feasibility are the three basic norms generally found in accounting principles 3. The Cash book record only the cash payments 4. If a Cheque sent for collection is dishonored, the debit is given to customer's account 5. If a Cheque is issued by us is dishonored, the credit is given to supplier's account 6. Discount allowed column appears in debit side of the cash book 7. Discount Received Column appears in the credit side of the cash book 8. Cash books one of the Subsidiary books 9. When Bank column of a Cash Book shows a credit balance, it means overdraft or amount due to the bank 10. Overdraft balance as per Pass book is R11,500. Interest on Overdraft R350 Debited by Bank but not recorded in the Cash Book. Overdraft Bank balance as per Cash Book is R11.150 credit 11. The ledger is the book of original entry 12. The income statement shows either net profit or net loss for a particular period 13. The salary paid in advance is not an expense because it neither reduces assets or nor increase liabilities 14. All liabilities which become due for payment in one year are classified as long-term liabilities 15. The term current asset is used to designate cash and other assets or resources which are reasonably expected to be realized or sold or consumed within one year 16. An asset gives rise to expenditure when it is acquired and to an expense when it is consumed 17. Sales less cost of goods sold = gross profit 18. Depreciation account appear in the trial balance is taken only to profit and loss account 19. Depreciation is charged on all assets 20. Fixed assets are stated in the balance sheet at their written down value

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True or false questions

Answer 1

Solution O fause O - Fuse -false The ceash book pecordy ony the Ceh puyments 3 cuph Recelps. Feulse fuls e False-piscount Coums re not beulanced in ceuh book . O- Fare- discount Co lums cre not entereed emy entry in ush dook. O- Trul. false D- felsl-Boley of ornginul entriy aefens to the ewounting Jounies. false 2-True. 13-Feuse Felse- long term. Ciabilities cre theet due ufter Or more. yeur are P.

O True 9 True-(Gross profit, it s ns t Met DTrue O True 20 True.