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State true or false with reason. Payment of cash against purchase of stock is use of fund. - Book Keeping and Accountancy

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Question

State true or false with reason.

Payment of cash against purchase of stock is use of fund.

Options

  • True

  • False

MCQ
True or False
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Solution

This statement is True.

Cash payment for purchase of stock is made from cash balance or/and from bank balance which is a part of business fund. When stock or materials we purchase we use cash for payment.

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Chapter 9: Analysis of Financial Statements - Exercise 9.1 (Objective Questions) [Page 376]

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Balbharati Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board
Chapter 9 Analysis of Financial Statements
Exercise 9.1 (Objective Questions) | Q C. 6. | Page 376
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