Essential Book Keeping - Qp2

12 Questions | Total Attempts: 110

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Essential Book Keeping - Qp2

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

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