state whether the following statements is true or false 618965

State whether the following statements are True or False

1. A business transaction not necessarily involves an exchange of money or money’s worth.
2. Business transactions are classified into Cash Transactions, Credit Transactions and Non-cash Transactions.
3. Depreciation is a credit transaction.
4. Only one account is prepared for all transactions and it is not prepared for each and every item.
5. Credit transactions are always nominal account.
6. Accounts of legal entities in the nature of limited companies accounts belong to groups or representative personal accounts.
7. Goodwill is a tangible account.
8. Bad debt is a nominal account.
9. Valuation accounts are also known as Contra Accounts.
10. Interest received in advance is a Personal Account.
11. Insurance Premium Account is a Personal Account.
12. The giving and receiving aspects take place between accounts and in different account books and not in the same set of books.
13. The giving and receiving aspects of a business transaction must be recorded simultaneously and at the same time.
14. Double Entry System means recording each transaction twice.
15. Every debit must have a corresponding credit
16. A Goods account is generally not opened.
17. In accounting, transactions are recorded on the basis of business entity concept.
18. The business transactions are not recorded chronologically.
19. The terms “General Journal” and “Journal Paper” both denote the same meaning.
20. A Journal is a permanent record of the business
21. Each transaction is provided with an explanation (written at the end of transaction briefly within brackets) is referred to as “narration.”
22. The application of debit-credit rules do not apply to American approach of journalising.
23. The accounts with the balances in the previous year, comprising Real and Personal Accounts are entered in the new books of account with the help of “Opening Entry.”
24. In an Accounting Equation Approach, transactions are analysed in terms of variables: assets, liabilities, capital, revenues and expenses.
25. In an Accounting Equation Approach, decrease in an asset item is debited
26. In an Accounting Equation Approach, decrease in liability is debited
27. In an Accounting Equation Approach, increase in Capital is debited
28. In an Accounting Equation Approach, increase in an expense item is debited
29. Increase in an income item is debited as per American procedure.
30. Journal entry will be the same for both the conventional approach and accounting equation approach in recording business transactions.