Features of Single Entry - SS2 Accounting Past Questions and Answers - page 1
What is the key feature of a single entry?
Each transaction is recorded twice
Each transaction is recorded only once
Each transaction is recorded as debit and credit
None of the above
What type of businesses is single entry suitable for?
Small businesses with a low volume of transaction
Large businesses with a high volume of transactions
Businesses of any size
None of the above
What is the major limitation of a single entry?
It is too complex
It provides too much information
It is incomplete
None of the above
What is the level of knowledge required to maintain a single entry?
Extensive knowledge of accounting principles
Basic knowledge of accounting principles
No knowledge of accounting principles
None of the above
Which of the following financial statements cannot be prepared from a single entry?
Balance Sheet
Income Statement
Cash Flow Statement
All of the above
Is single entry suitable for large businesses with a high volume of transactions?
No, single entry suitable is not for large businesses with a high volume of transactions.
What is the advantage of using single entry for small businesses?
It is simple and easy to maintain.