Principles And Rules of Double Entry - SS1 Accounting Past Questions and Answers - page 1
1
What is the accounting equation?
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A
Assets = Liabilities - Equity
B
Assets = Liabilities + Equity
C
Assets - Liabilities = Equity
2
What happens if the total amount of debits does not equal the total amount of credits?
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A
The accounting records are considered accurate
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B
The accounting records are considered unreliable
C
The accounting records are considered incomplete
3
Which principle of double-entry bookkeeping involves recording each transaction in at least two different accounts?
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A
Principle of consistency
B
Principle of conservatism
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C
Principle of double entry
4
What is the purpose of the principle of consistency in double-entry bookkeeping?
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A
To ensure the accounting records are accurate and up-to-date
B
To ensure the same accounting methods and procedures are used consistently over time
C
To record the lower value or amount when there are uncertainties or doubts
5
What is the principle of conservatism in double-entry bookkeeping?
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A
Recording each transaction in at least two different accounts
B
Using the same accounting methods and procedures consistently over time
C
Being conservative and recording the lower value or amount when there are uncertainties or doubts
6
What is the accounting equation and why is it important in double-entry bookkeeping?
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7
Why is the principle of conservatism important in double-entry bookkeeping?
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