Choose the correct answer from the following options:

(1) Preparation of financial statements consists of :-

(a) Revenue accounts alone (b) Balance Sheet only

(C) Trial Balance

(2) Prepaid insurance appears in:-

(a) Trading account (b) Profit and Loss account (c) List of assets.

(3) Depreciation is a:-

(a) Gain (b) Loss (c) Appreciation

(4) Revenue earned but not received is:-

(a) Aliability (b) An asset (c) Nominal account

(5) Interest on Drawings is deducted from:-

(a) Net profit (b) Drawings (c) Capital

(6) Closing Stock is valued at:-

(a)Cost price (b) Market price (c) Cost price or market price whichever is lower

Choose the correct answer from the foldwing-

(1) Gross loss will result if:

1. Sales revenues are greater than cost of goods sold.
2. Operating expenses are greater than net income.
3. Sales revenues are less than cost of goods sold.
4. Sales revenues are less than operating expenses .

State whether the statements given below are True and false:-

1- Capital is a liability account.

2- Balance sheet consists of debit side and credit side.

3- All Assets will show debit balances.

4- All Liabilities will show credit balances.

5- An account with debit balance will be either expense or asset.

6- Adjustment entries are passed throughout out the year like other entries.