Account class 11 Financial Statements

1. Balance sheet is prepared on a particular date and not for a particular accounting period.

2. Prepaid expenses are treated as liquid asset.

3. Goodwill is a tangible asset.

4. Current asset do not include closing stock.

5. Grouping means showing the items of similar nature under a common heading.

6. Marshaling means showing the asset and liability in a proper order in the balance sheet.

7. The asset which is most easily convertible into cash is shown first and the liability  which is to be paid at the earliest will be shown last in order of liquidity.

8. The least liquid asset is shown first and the least urgent liability is shown last in order of permanence.

9. The purpose preparing final accounts is to ascertain ;

10. The profit and  loss account shows ;

11. Balance sheet shows ;

12. Final accounts are prepared ;

13. Trading and profit and loss account is prepared ;

14. Balance sheet is prepared ;

15. Excess of debit in profit and loss account is called ;

16. “Salaries and wages ” appearing in trial balance is shown ;

17. Balance sheet is prepared with the balance of which of the following ;

18. Balance of petty cash is ;

19. Fixed asset are kept ;

20. Goodwill is ;

21. Choose the current asset from the following ;

22. Schedule of balances prepared from ledger account is known as ;