Double Entry Bookkeeping
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.
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.
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Events related to money are called:A. Monetary events
B. Non-monetary events
C. Composite events
D. Simple events
The accounting equation can be expressed as follows:
A. Assets = Income + Expenses
B. Assets = Liabilities + Drawings
C. Assets = Liabilities
D. Assets = Liabilities + Capital
A dealing between two parties for a particular thing is called a:
A. Event
B. Monetary event
C. Non-monetary event
D. Transaction
The double entry accounting system is:
A. An accounting system that is useful for small business.
B. An accounting system involving all the interested parties of accounting information.
C. An accounting system in which transactions are recorded from a single aspect.
D. An accounting system in which business transactions are recorded from dual aspects.
In simple words, the occurrence of something is called a:
A. Transaction
B. Sale
C. Event
D. Purchase
One of the items below is not a transaction.
A. Mr. Smith started a business with cash of $100,000
B. Received a price list from suppliers
C. Received interest from the bank amounting to $5,000
D. Paid salaries of $300
Transactions involving a business and a second outside party are called:
A. Internal transactions
B. External transactions
C. Monetary events
D. Non-monteray events
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