Tag: meaning, definition, need, objectives and limitations of 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 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.

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 credit of evolving the present Double Entry Book-Keping System goes to a philosopher turned mathematician, Italian merchant ''Luca D Bargo Pacioli'' in 1494.

  1. True

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

Luca Pacioli, an Italian mathematician and monk, is credited with documenting the double entry book-keeping system in 1494 in his work 'Summa de Arithmetica'. The statement correctly attributes this historical fact, despite minor spelling variations.

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 method of book keeping guranteed arithmetical accuracy?

  1. Double Entry System

  2. Single Entry System

  3. Deshi Nama System

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

The double entry system ensures arithmetical accuracy because the total of all debits must equal the total of all credits, which can be verified through a trial balance.

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

Filing is an important aspect of ____________.

  1. record keeping

  2. book keeping

  3. house-keeping

  4. time keeping
Reveal answer Fill a bubble to check yourself
C 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

Double entry system of book-keeping refers to a system where, _____________________.

  1. the number of accounts with a debit balance must agree with the number of accounts with the credit balance

  2. each transaction is recorded twice, once in journal and then in ledger

  3. equal debit and credit entries are made for each transaction

  4. each transaction is recorded in two set of account book
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Double Entry System of accounting is based on the dual aspect of accounting. It says that every transaction will have two effects in books of account.

For every debit , there will a credit of similar amount and vice versa. 

For example, Goods worth Rs. 1000 purchased for cash. There are 02 accounts which are affecting here i.e. cash is going out of Rs.1000 and Goods are coming for Rs.1000.

Hence, it is true that equal debit and credit entries are made for each 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

Double entry book keeping system is most scientific system of recording business transactions.

  1. True

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

"The specific technique which reflects the concept of duality is known as double entry book-keeping."-Lewis and Gillespie.

It is the most common system of bookkeeping whereby the two aspects of every transaction i.e., the receiving aspect (debit) and the giving aspect (credit) are recorded in the books of accounts. It is based on the 'dual aspect concept'.
This method of writing every transaction in two different accounts on opposite sides for equal value is known as the double entry system of book keeping. This is the most accurate, complete and scientific system of accounting.