Tag: double entry system

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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 system of recording transactions based on dual aspect concept is _____________.

  1. Double account system

  2. Double entry system

  3. Single entry system

  4. Incomplete system
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The system of recording transactions based on dual aspect is called as double entry system.

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 term "Double Entry System" implies that __________.

  1. It records two-fold effect of every transaction

  2. Every financial transaction is recorded twice

  3. Two accounts are maintained for each financial transaction

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

The double-entry system of accounting or bookkeeping means that for every business transaction, amounts must be recorded in a minimum of two accounts. The double-entry system also requires that for all transactions, the amounts entered as debits must be equal to the amounts entered as credits.

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

State with reasons whether the following statement is true or false.
Revenue are matched with expenses in accordance with the matching principle.

  1. True

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

The matching concept involves that the revenue earned in an accounting year is matched with the expenses incurred during the same period to generate that revenue.

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

State with reasons whether the following statement is true or false.
In double account, all business transactions are recorded as having dual aspect.

  1. True

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

The dual aspect concept indicates that each transaction made by a business needs to be recorded in two separate accounts.

Whenever a transaction occurs there is a two-sided effect, one is credit and the other is debit for a similar amount.

In double account, all business transactions are recorded as having dual aspect.

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 every business transaction affects ________________________.

  1. Two accounts with equal but opposite effect.

  2. Two sides of the same account.

  3. The same account on two different dates.

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

 The double entry system of bookkeeping is based on the fact that every transaction has two parts and that this will therefore affect two ledger accounts. Every transaction involves a debit entry in one account and a credit entry in another account.

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

Which system of accounts recognizes the fact that every transaction has two aspects and records both aspects of each and every transaction?

  1. Single entry system

  2. Double entry system

  3. Double account system

  4. Duplicate account system
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

On the other hand, the double entry system is based on scientific principles and is, therefore, used by most of the business houses. 

The system recognizes the fact that every transaction has two aspects and records both aspects of each and every transaction.

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

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 arithmetical accuracy of accounts

  3. The detailed profit and loss account can be prepared to show profits 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

This question is identical to Q431719. The double entry system provides complete transaction records (A), arithmetical accuracy checks (B), and detailed profit/loss preparation (C). Since all are valid merits, 'All of the above' is correct.

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

As per the provisions of the Companies Act, 2013, companies must maintain their accounts under __________________.

  1. Double account system

  2. Single entry system

  3. Double entry system

  4. Duplicate account system
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Companies Act, 2013 requires every company to keep and maintain at its registered head office books of accounts and relevant documents and the financial statements for each FY (financial year) that provides a true and fair picture of the company's state of affairs which includes its branch offices and other offices.

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

If salary is given to proprietor ___________.

  1. Proprietors salary account is debited

  2. Capital account is credited

  3. Both a & b

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

When a salary is paid to a proprietor, it is treated as a withdrawal or an expense. The entry involves debiting the proprietor's salary/drawings account and crediting the cash account, which effectively reduces the capital account.

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

When the final accounts are being prepared for a firm in respect of adjustments __________________.

  1. Double entry should be made

  2. Double entry not required

  3. Should appear only in balance sheet

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

Adjustments at the end of the accounting period must follow the double entry principle to ensure that the financial statements remain balanced and accurate.