Essential Book Keeping - Qp2
- 1.The system that forms the basis of most accounting procedures is called single entry bookkeeping.
- A.
True
- B.
False
- 2.The whole of accounting and bookkeeping is underpinned by a set of concepts and ideas.
- A.
True
- B.
False
- 3.Basic concepts is the belief that only transactions that relate to business activities should be processed within the business accounts.
- A.
True
- B.
False
- 4.The money measurement principle dictates that every transaction has two sides to it.
- A.
True
- B.
False
- 5.All items in the accounts must be recorded at the actual value they took place at, that is to say the ______ cost.
- A.
Future
- B.
Present
- C.
Historical
- 6.There are a few rules concerning the way in which entries are made into the books: (Select four)
- A.
A new page is created for each account.
- B.
Each page is divided into three parts.
- C.
Every time an entry is made on the credit side of one account, an equal amount must be entered on the debit side of another account.
- D.
Each entry comprises the date, amount and a short description.
- E.
Accounts are broken down into three categories.
- 7.Injections of capital are debits to the capital account.
- A.
True
- B.
False
- 8.To decrease the value in an asset account, enter the value on the debit (or left hand) side.
- A.
True
- B.
False
- 9.To decrease the value in a liability account, enter the value on the debit side.
- A.
True
- B.
False
- 10.In a traditional set of double entry bookkeeping accounts there are a number of rules that are used to ensure conformity across accounts which includes: (Select five)
- A.
Debit entries are recorded on the left hand side of the page
- B.
Credit entries are recorded on the right hand side of the page
- C.
No more than one account on a single page
- D.
The name of the account should be written on the bottom of the page
- E.
The page should be split up to allow the date, a brief description, a reference, and an amount for each transaction to be recorded
- F.
A folio column is usually used to cross reference to the other side of the double entry
Questions: 8 | Attempts: 37 | Last updated: May 30, 2014
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