Double Entry Bookkeeping MCQs

One of the items below is not an advantage of the double entry accounting system.

It reflects a comprehensive record of the business.

The accounting system can be used by any type of organization.

It helps to make managerial decisions.

It can handle inflation.

Handling inflation is not an advantage of the double entry accounting system. The double entry system ensures accuracy and completeness of financial records, but it does not inherently adjust for inflation.

Author: rikazzz Comment

Double Entry Bookkeeping

Transactions that do not involve an outside party are called:

Internal transactions

External transactions

Monetary events

Non-monetary events

Author: rikazzz Comment

Double Entry Bookkeeping

Events unrelated to money are called:

Non-monetary events

Monetary events

Composite events

Simple events

Author: rikazzz Comment

Double Entry Bookkeeping

Transactions involving a business and a second outside party are called:

Internal transactions

External transactions

Monetary events

Non-monteray events

Author: rikazzz Comment

Double Entry Bookkeeping

One of the items below is not a transaction.

Mr. Smith started a business with cash of $100,000

Received a price list from suppliers

Received interest from the bank amounting to $5,000

Paid salaries of $300

Author: rikazzz Comment

Double Entry Bookkeeping

In simple words, the occurrence of something is called a:

Transaction

Sale

Event

Purchase

Author: rikazzz Comment

Double Entry Bookkeeping

The double entry accounting system is:

An accounting system that is useful for small business.

An accounting system involving all the interested parties of accounting information.

An accounting system in which transactions are recorded from a single aspect.

An accounting system in which business transactions are recorded from dual aspects.

Author: rikazzz Comment

Double Entry Bookkeeping

A dealing between two parties for a particular thing is called a:

Event

Monetary event

Non-monetary event

Transaction

Author: rikazzz Comment

Double Entry Bookkeeping

The accounting equation can be expressed as follows:

Assets = Income + Expenses

Assets = Liabilities + Drawings

Assets = Liabilities

Assets = Liabilities + Capital

Author: rikazzz Comment

Double Entry Bookkeeping

Events related to money are called:

Monetary events

Non-monetary events

Composite events

Simple events

Author: rikazzz Comment