Practice Double Entry System Of Accounting (4.5) - Mechanics and Terminology of Accounting Systems

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9 questions

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6 sample questions

Question 1.
What is the fundamental principle of the Double Entry System?
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Think about how transactions affect accounts.
Question 2.
Define Debit.
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Consider how it affects accounts.
3Question 3.
In the Double Entry System, how many accounts are affected for every transaction?
- One
- Two
- Three
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Consider the meaning of double entry.
4Question 4.
True or False: The accounting equation is Assets = Liabilities - Capital.
- True
- False
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Recall the basic principle of accounting.
Question 5.
A company received ₹15,000 in cash for services rendered. How do you record this in the Double Entry System?
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Identify which accounts are involved in this transaction.
Question 6.
If a business borrows ₹25,000 from the bank, what entries are required in the Double Entry System?
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Think about what the business receives and what it owes.

5 more questions in this section. Enroll free to practise them all.