(D) State whether the following statements are TRUE/FALSE

1. All direct expenses are debited to Trading account. True

2. The Balance Sheet is a nominal account. False

3. Discount allowed to debtors is called as bad debts. False

4. Profit and loss account is a nominal account True

5. The interest on drawings is an income of the firm. True

6. The interest on capital is an income of the firm. False

7. Trading account is a nominal account. True

8. Prepaid expenses are shown on the asset side of the Balance sheet. True

9. Closing stock is always valued at market price. False

10. Outstanding expenses are shown on the liability side of the Balance sheet. True

11. Partners must share profits and losses equally. False

12. Trial Balance is the base of Final account. True

13. Debit balance of Trading account shows gross profit. False

14. Credit balance of profit and loss account shows net profit of the business. True

15. Return inward is deducted from purchases. False

16. Unproductive wages are debited to trading a/c. False

17. Royalty is debited to profit & loss a/c. False

18. Wages & salaries is treated as indirect expense. False

19. Balance sheet is not an account. True

20. Fictitious assets are intangible assets. True

21. Current assets are also called as floating assets. True

22. Income received, but not earned is an asset. False

23. Outstanding wages is a nominal a/c. False

24. Final accounts are prepared end of the accounting year. True