Tag: meaning, definition, need, objectives and limitations of double entry system

Questions Related to meaning, definition, need, objectives and limitations of double entry system

The Double Entry System of accounting originated in _________.

commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

  1. America

  2. Russia

  3. Italy

  4. England

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Correct Option: C
Explanation:
Double entry accounting system first invented in Italy by a church father who's named Luca Bartolomes Pacioli. He was the mathematician and contemporary of Leonardo Da Vinci.

Double Entry Principle means _____________________.

commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

  1. having debit for every credit and similarly, credit for each debit

  2. writing all the entries twice in the book

  3. maintaining the double account for all business transactions

  4. writing two times the same entry

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Correct Option: A
Explanation:
Double entry means that every transaction will involve at least two accounts. For example, if your company borrows money from the bank, the company's asset Cash is increased and the company's liability Notes Payable is increased. ... Double entry also requires that one account be debited and the other account be credited.

In double entry system of book-keeping every business transaction affects _____________.

commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

  1. two accounts

  2. two sides of the same account

  3. the same account on two different dates

  4. all of the above

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Correct Option: A
Explanation:

Because every business transaction affects at least two accounts, our accounting system is known as a double-entry system.  For example, when a company borrows $1,000 from a bank, the transaction will affect the company's Cash account and the company's Notes Payable account.

The accounting system which records both the aspects i.e. debit and credit, of all the transactions is known as _____________.

commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

  1. Double entry system

  2. Single entry system

  3. Double account system

  4. Inflation accounting system

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Correct Option: A
Explanation:

 Double-entry bookkeeping, in accounting, is a system of bookkeeping so named because every entry to an account requires a corresponding and opposite entry to a different account. The double-entry has two equal and corresponding sides known as debit and credit. The left-hand side is debit and right-hand side is credit.

In double Entry system of Book-keeping every business transaction affects __________.

commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

  1. Two accounts.

  2. Two sides of the same account.

  3. The same account on two different dates.

  4. All of these.

Show answer
Correct Option: A
Explanation:

Because every business transaction affects at least two accounts, our accounting system is known as a double-entry system. 

For example, when a company borrows $1,000 from a bank, the transaction will affect the company's Cash account and the company's Notes Payable account.

The system of recording transactions based on dual aspect concept is _____________.

commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

  1. Double account system

  2. Double entry system

  3. Single entry system

  4. Incomplete system

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Correct Option: B
Explanation:

The system of recording transactions based on dual aspect is called as double entry system.

The term "Double Entry System" implies that __________.

commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

  1. It records two-fold effect of every transaction

  2. Every financial transaction is recorded twice

  3. Two accounts are maintained for each financial transaction

  4. None of the above

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Correct Option: A
Explanation:

The double-entry system of accounting or bookkeeping means that for every business transaction, amounts must be recorded in a minimum of two accounts. The double-entry system also requires that for all transactions, the amounts entered as debits must be equal to the amounts entered as credits.

State with reasons whether the following statement is true or false.
Revenue are matched with expenses in accordance with the matching principle.

commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

  1. True

  2. False

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Correct Option: A
Explanation:

The matching concept involves that the revenue earned in an accounting year is matched with the expenses incurred during the same period to generate that revenue.

State with reasons whether the following statement is true or false.
In double account, all business transactions are recorded as having dual aspect.

commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

  1. True

  2. False

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Correct Option: A
Explanation:

The dual aspect concept indicates that each transaction made by a business needs to be recorded in two separate accounts.

Whenever a transaction occurs there is a two-sided effect, one is credit and the other is debit for a similar amount.

In double account, all business transactions are recorded as having dual aspect.

In double entry system of book-keeping every business transaction affects ________________________.

commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

  1. Two accounts with equal but opposite effect.

  2. Two sides of the same account.

  3. The same account on two different dates.

  4. All of the above

Show answer
Correct Option: A
Explanation:

 The double entry system of bookkeeping is based on the fact that every transaction has two parts and that this will therefore affect two ledger accounts. Every transaction involves a debit entry in one account and a credit entry in another account.