Introduction to Accounting — Account STD 11 Commerce — Question

Debit balance of a nominal account shows income of the business.

There is no difference between written down value method and diminishing balance method of depreciation.

Written down value method is followed so that the total burden on Profit and Loss Account in respect of depreciation and repairs put together remains almost equal each year.

At the time of renewal of a bill, interest account is credited in the books of the drawee.

Providing depreciation ensures sufficient cash for the replacement of an asset.

Cash Book is both a subsidiary book and a ledger account.

Assets accounts may have either debit or credit balance.

Accounting is helpful in raising loans.

A bill from the point of view of a creditor is called a bill receivable.

Management of an enterprise is internal user of its accounting information.