Practice Test 55
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The assumption underlying the fixed installment method of depreciation is that of ________ of the asset over different years of its useful life.

  • Solution

    Under fixed installment method, depreciation is of equal usage of asset over different years of its useful life

An account is a formal record of changes in items of ________ nature.
(a). (b).
(c). (d).

  • Solution

    Account is a formal record of changes in items of similar nature.

Accounts receivable normally has ________ balance.

  • Solution

    Account Receivable normally has Dr. Balance.

Capital expenditures are recorded in the ________

  • Solution

    Capital expenditures are recorded in balance sheet as they are not revenue in nature(thus not charged to P& L A/c)

Bank pass book is also known as ________

  • Solution

    Bank pass book is also called bank statement.

Rs. 5,000 spent on maintenance of plant and machinery is ________.

  • Solution

    Amount spent on maintenance of plant and machinery is revenue expense.

In case of debit balance, the words ________ are written on the debit side.

  • Solution

    The words ‘To bal. b/d’ are written on Dr. Side in case of Dr. Balance.

It is easy to detect ________ than to ________.

  • Solution

    It is easy to detect Errors than to Frauds.

Trial balance is a statement which shows the ________ or the ________of all the accounts.

  • Solution

    Trial balance shows the Dr. Balance or Cr. Balance of all accounts.

Errors are ________ mistakes.

  • Solution

    Unintentional mistakes are errors.

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FUNDAMENTALS OF ACCOUNTING
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