Financial Accounting

Insurance Claim Received on account of plant and machinery completely damaged by fire is a capital receipt

• True

• False

Accrual Concept implies accounting on cash basis

• True

• False

Partners can share profits or losses in their capital ratio, when there is no agreement

• True

• False

Receipts and Payments Account highlights total income and expenditure

• True

• False

Outstanding Wages A/c is a Personal Account

• True

• False

Bad Debts A/c is a Nominal Account

• True

• False

In the Double Entry System, every business transaction affects the same side of two accounts

• True

• False

In the case of cheques issued but not encashed, the balance of the passbook will be more than the balance of the bank account in books of accounts

• True

• False

In the straight-line method the amount of depreciation decreases year after year.

• True

• False

In the case of the death of the partner, accounting treatment will be similar to that of a retiring partner.

• True

• False