Double Entry Book Keeping - JSS1 Business studies Past Questions and Answers - page 1
What is double entry bookkeeping?
A system where every financial transaction has equal and opposite effects in at least two different accounts.
A system where only one account is used for recording financial transactions.
A system where transactions are recorded randomly without any specific rules
A system where transactions are recorded without any consideration of balancing
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How is an increase in assets recorded in double entry bookkeeping?
Debited
Credited
No entry is made
Both debited and credited
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When a liability is incurred, how is it recorded in double entry bookkeeping?
Debited
Credited
No entry is made
Both debited and credited
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What happens when a liability is paid off or reduced in double entry bookkeeping?
Debited
Credited
No entry is made
Both debited and credited
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How are expenses recorded in double entry bookkeeping?
Debited
Credited
No entry is made
Both debited and credited
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How is a decrease in assets recorded in double entry bookkeeping?
Debited
Credited
No entry is made
Both debited and credited
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In double entry bookkeeping, what happens when an asset is sold?
Asset account is debited
Asset account is credited
Liability account is debited
Liability account is credited
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When a liability is incurred, which account is credited in double entry bookkeeping?
Asset account
Liability account
Equity account
Expense account
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What is the effect of an increase in liabilities in double entry bookkeeping?
Asset account is debited
Liability account is debited
Asset account is credited
Liability account is credited
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How are expenses treated in double entry bookkeeping?
Increase is debited, decrease is credited
Increase is credited, decrease is debited
Both increase and decrease are debited
Both increase and decrease are credited
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