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Double Entry Book Keeping - JSS1 Business studies Past Questions and Answers - page 1

1
What is double entry bookkeeping?
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A

A system where every financial transaction has equal and opposite effects in at least two different accounts.

B

A system where only one account is used for recording financial transactions.

C

A system where transactions are recorded randomly without any specific rules

D

A system where transactions are recorded without any consideration of balancing

2
How is an increase in assets recorded in double entry bookkeeping?
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A

Debited

B

Credited

C

No entry is made

D

Both debited and credited

3
When a liability is incurred, how is it recorded in double entry bookkeeping?
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A

Debited

B

Credited

C
No entry is made
D

 Both debited and credited

4
What happens when a liability is paid off or reduced in double entry bookkeeping?
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A

Debited

B

Credited

C

No entry is made

D

Both debited and credited

5
How are expenses recorded in double entry bookkeeping?
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A

Debited

B

Credited

C

No entry is made

D

Both debited and credited

6
How is a decrease in assets recorded in double entry bookkeeping?
View related lesson
A

Debited

B

Credited

C

No entry is made

D

Both debited and credited

7
In double entry bookkeeping, what happens when an asset is sold?
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A

Asset account is debited

B

Asset account is credited

C

Liability account is debited

D

Liability account is credited

8
When a liability is incurred, which account is credited in double entry bookkeeping?
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A

Asset account

B

Liability account

C

Equity account

D

Expense account

9
What is the effect of an increase in liabilities in double entry bookkeeping?
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A

Asset account is debited

B

Liability account is debited

C

Asset account is credited

D

Liability account is credited

10
How are expenses treated in double entry bookkeeping?
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A

Increase is debited, decrease is credited

B

Increase is credited, decrease is debited

C

Both increase and decrease are debited

D

Both increase and decrease are credited