Tag: double entry system

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Multiple choice book keeping and accountancy meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system

There are ______ systems of keeping records.

  1. Single Entry System & Double Accounts System

  2. Single Account System & Double Accounts System

  3. Single Entry System & Double Entry System

  4. Single Entry System & Duplicate Accounts System
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The two primary systems for maintaining financial records are the Single Entry System and the Double Entry System.

Multiple choice book keeping and accountancy meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system

Which of the following is/are merit of double entry system?

  1. It keeps a complete record of business transactions.

  2. It provides a check on the arithmetical accuracy of accounts.

  3. The detailed profit and loss account can be prepared to show profit earned or loss suffered during any given period.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The double entry system is comprehensive; it ensures complete records, allows for arithmetical accuracy checks via a trial balance, and facilitates the preparation of detailed financial statements.

Multiple choice commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

In Double Entry System, if one account is debited the other account must be credited with equal amount.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The fundamental principle of the double entry system is that every transaction has a dual effect, meaning for every debit, there must be an equal and corresponding credit.

Multiple choice commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

Book-keeping is helpful for ___________.

  1. Owners

  2. Lenders

  3. Investors

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Book-keeping provides essential financial data that is useful to various stakeholders, including owners (for performance), lenders (for creditworthiness), and investors (for decision-making).

Multiple choice commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

The job of recording transaction has been called as "Book-keeping"

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Book-keeping is defined as the process of recording, classifying, and summarizing financial transactions in a systematic manner.

Multiple choice commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

Book-keeping helps the management in _____________.

  1. Planning

  2. Decision making

  3. Controlling

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Bookkeeping enables the small business owner to support expenditures made for the business in order to claim all available tax credits and deductions. It also provides detailed, accurate, and timely records that can prove invaluable to management decision-making, or in the event of an audit.

Multiple choice commercial studies meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

Which of the following is/are the advantage of double entry system of book-keeping?

  1. It helps to find out profit, losses, assets and liabilities in the business at any time.

  2. It helps the management in planning, decision making, controlling and managing the overall business activities.

  3. It enables investors to take a decision whether to invest or not.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The double entry system provides a complete and accurate financial picture, which is vital for management planning, investor analysis, and overall business control.

Multiple choice commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

How many books are prepared under conventional accounting system?

  1. 2

  2. 4

  3. 3

  4. 5
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

In double entry system of book-keeping, one is receiver of benefit and other is giver of benefit.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The double entry system is based on the concept of reciprocity, where every transaction involves a giver of value and a receiver of value.