Meaning of Double Entry - SS1 Accounting Past Questions and Answers - page 1
1
What is double-entry bookkeeping?
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A
A method of recording financial transactions in one account
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B
A method of recording financial transactions in two different accounts
C
A method of recording financial transactions in three different accounts
2
Which of the following represents a debit entry?
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A
Money coming in
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B
Money going out
C
Money owed
3
What is the purpose of double-entry bookkeeping?
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A
To record transactions in a single account
B
To ensure the accounting records are balanced
C
To create a record of only debit entries
4
Which accounts are involved in a double entry for a purchase made on credit?
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A
Only the inventory account
B
Only the accounts payable account
C
Both the inventory account and the accounts payable account
5
In double-entry bookkeeping, why are transactions recorded twice?
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A
To make the accounting records more complicated
B
To identify errors in the accounting records
C
To make the accounting records longer
6
Simply state the difference between a debit and a credit in double-entry bookkeeping in one sentence.
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7
Why is double-entry bookkeeping important for businesses?
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