Choose the correct statement from the below mentioned options ________________.

Petty cash in an expense.

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Balance sheet is also known as a positional statement.

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Revaluation account is real account.

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Depreciation is a process of valuation.

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Solution

The correct option is B Balance sheet is also known as a positional statement.
Balance Sheet depicts the financial position of the organization on a particular date. Balance sheet shows the overall assets and liabilities position as on date. Balance sheet is also known as positional statement.

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Similar questions

A Statement of Affairs is similar to the :

(a) Balance sheet
(b) Trial balance
(c) Trading Account
(d) Profit & Loss Account

Q. State whether the following Statements are True or False

1. There is need to provide depreciation if it is maintained with care.
2. Depreciation cannot be provided in case of loss in a financial year.
3. A Specific reserve can be created for any purpose.
4. Capital Reserves are not freely distributed as profits.
5. Under the written down value method depreciation is calculated on the original cost of an asset.
6. Depreciation is the process of valuation of asset.
7. Depreciation is a non-cash expense.
8. Secret reserves are disclosed in Balance Sheet.
9. General reserves is created to meet contingency liability.
10. Depreciation is charged only on fixed asset.

State whether the following statement are true or false.

1. Final Accounts are prepared on the basis of Trial Balance.
2. Trading Account is a part of Profit & Loss Account.
3. Profit Loss Account is prepared to find out Gross Profit or Gross Loss.
4. Gross Profit or Gross Loss is transferred to Balance Sheet.
5. An amount of net profit is added to the capital.
6. All indirect expenses are debited to trading account.
7. Balance Sheet is a statement and not an account.
8. Capital account is a personal account.
9. Amount of prepaid expenses appears on assets side.
10. Bank Overdraft is a liability of business concern.

Depreciation is a non-cash expense which should not be provided for in the profit and loss account. Comment.

Q. The cost of a small calculator is accounted as an expense and not shown as an asset in a financial statement of a business entity due to __________________.

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Choose the correct statement from the below mentioned options ________________.

The correct option is B Balance sheet is also known as a positional statement.Balance Sheet depicts the financial position of the organization on a particular date. Balance sheet shows the overall assets and liabilities position as on date. Balance sheet is also known as positional statement.

The correct option is B Balance sheet is also known as a positional statement.
Balance Sheet depicts the financial position of the organization on a particular date. Balance sheet shows the overall assets and liabilities position as on date. Balance sheet is also known as positional statement.