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Which of the following statement is false regarding receipt and payment account
- a)Give fair idea of earned position
- b)Based on accrual basis
- c)Records all transactions without distinguishing among current , previous and succeeding accounting periods
- d)An assets account
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which of the following statement is false regarding receipt and paymen...
Because accrual basis means recording items in advance. As it already include prepaid rent, outstanding salary etc.
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Which of the following statement is false regarding receipt and paymen...
False statement regarding Receipt and Payment Account
Receipt and Payment Account is a summary of cash transactions that took place during a specific period. It is a part of the double-entry bookkeeping system. The Receipt and Payment Account is prepared on the basis of actual cash receipts and payments made by the organization. It records cash receipts and payments without considering the period when they were due to be received or paid. The following statement is false regarding Receipt and Payment Account:
b) Based on accrual basis
Explanation:
Accrual basis of accounting means recording revenue or expenses when they are earned or incurred, regardless of when the actual cash is received or paid. In contrast, the Receipt and Payment Account is based on the actual cash receipts and payments made during a specific period. It does not consider the accrual basis of accounting. Therefore, option 'B' is the false statement regarding Receipt and Payment Account.
Receipt and Payment Account is a summary of cash transactions that took place during a specific period. It is a part of the double-entry bookkeeping system. The Receipt and Payment Account is prepared on the basis of actual cash receipts and payments made by the organization. It records cash receipts and payments without considering the period when they were due to be received or paid. The following statement is false regarding Receipt and Payment Account:
b) Based on accrual basis
Explanation:
Accrual basis of accounting means recording revenue or expenses when they are earned or incurred, regardless of when the actual cash is received or paid. In contrast, the Receipt and Payment Account is based on the actual cash receipts and payments made during a specific period. It does not consider the accrual basis of accounting. Therefore, option 'B' is the false statement regarding Receipt and Payment Account.
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Which of the following statement is false regarding receipt and payment accounta)Give fair idea of earned positionb)Based on accrual basisc)Records all transactions without distinguishing among current , previous and succeeding accounting periodsd)An assets accountCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which of the following statement is false regarding receipt and payment accounta)Give fair idea of earned positionb)Based on accrual basisc)Records all transactions without distinguishing among current , previous and succeeding accounting periodsd)An assets accountCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statement is false regarding receipt and payment accounta)Give fair idea of earned positionb)Based on accrual basisc)Records all transactions without distinguishing among current , previous and succeeding accounting periodsd)An assets accountCorrect answer is option 'B'. Can you explain this answer?.
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