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