Special Purpose Books 2 Cash Book — Account STD 11 Commerce — Question

Mention any one difference between fixed asset and current asset.

What is meant by Prepaid Expenses?

A limited company cannot maintain its accounts under Single Entry System. Why?

If Depreciation reduces profit, reduces Book Value of assets and also reduces capital of the proprietor, then why do enterprises provide Depreciation?

Explain the term Date of Maturity.

Refusal by the acceptor to pay the bill on the maturity date is called Retirement of the Bill. Comment.

What are the classification of errors?

Give two examples of Capital Expenditure.

Cash sales of a business in a year were ₹ 29,000 and credit sales ₹ 31,000. The cost of goods sold (including direct expenses) works out at ₹ 52,000. Find out the Gross Profit.

What is the need for providing accrued incomes in final accounts?