Tag: single entry system

Quizzes (7) Questions (16)

Questions Related to single entry system

Multiple choice commercial applications single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs double entry system

In single entry system only ________________ accounts are opened.

  1. Real

  2. Nominal

  3. Personal

  4. Real and personal
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under Single entry System only personal accounts and cash A/c are opened. 

Only personal and cash accounts and the cash and credit transactions (related to personal accounts) are recorded under this system.

Multiple choice commercial applications single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs double entry system

In single entry system it is not possible to prepare _____.

  1. Balance sheet

  2. Receipts and payments account

  3. Trial balance

  4. Account sales
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under single entry system Books of accounts are not maintained hence, Trial Balance is not Possible to Prepare.

Multiple choice commercial applications single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs double entry system

A statement of ____________ is to be prepared in order to find out the profit and loss under a single entry system.

  1. Income

  2. Affairs

  3. Revenue

  4. Profit and loss
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Profit or loss earned by the business under single entry system is based on the difference between its Opening and closing capital.
To ascertain this capital Statement of affairs are prepared.

Multiple choice commercial applications single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs double entry system

__________system is usually adopted by traders who have less knowledge of Accounting.

  1. Double entry system

  2. Single entry system

  3. Dual aspect system

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Single Entry System of Accounting, also known as Accounting from Incomplete Records, is a non-standard and non-scientific system of accounting. This system is adopted by small businessmen as they do not have enough capital and expertise to employ the standard double entry system of accounting in their business.

Multiple choice commercial applications single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs double entry system

In _____ forms of business the owners are directly responsible for the debts of the business.

  1. Sole proprietor

  2. Corporate body

  3. Both

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Sole proprietorship is type of enterprise that is owned and run by one natural person and in which there is no legal distinction between the owner and business entity. The owner is in direct control of all elements and is legally accountable for the finances of such business and this may include debt, loans, loss, etc.

Multiple choice commercial applications single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs double entry system

Income -tax of the sole trader paid is shown ___________.

  1. Debited to profit and Loss A/c

  2. Debited to Trading A/c

  3. Debited to his Capital A/c

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For a Sole Proprietor, income tax is not an expense incurred to generate revenue hence it is not treated as an expense to be paid out of profits. In this case, income tax is treated as a personal expense resulting in drawings from the business concluding to a reduction of capital.