Conversion of Single Entry - SS2 Accounting Past Questions and Answers - page 1
What is double-entry accounting?
A system where each transaction is recorded in one account only.
A system where each transaction is recorded in at least two accounts.
A system where each transaction is recorded in three accounts.
A system where each transaction is recorded in four accounts.
What is the purpose of double-entry accounting?
To confuse business owners
To ensure the accuracy of financial records
To make financial statements look more impressive
To make it harder for auditors to find mistakes
In double-entry accounting, a financial transaction is recorded in the:
One account only
Two accounts only
Three accounts
Four accounts
What is the benefit of using double entry accounting?
It saves time
It ensures the accuracy and completeness of financial records
It allows businesses to avoid paying taxes
It makes it easier to hide financial mistakes
What is the difference between simple entry and double entry accounting?
Simple-entry accounting records each financial transaction in only one account, while double-entry accounting records each transaction in at least two accounts.
Why is it important for businesses to use double-entry accounting?
Double-entry accounting helps ensure the accuracy and completeness of financial records, making it easier for businesses to make informed financial decisions and comply with accounting regulations.