Essential Book Keeping - Qp2

12 Questions | By Jacksonmatthews | Updated: Mar 15, 2022 | Attempts: 176

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Questions and Answers

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