Double Entry Accounting - Business Basics

Double Entry Accounting -

Business Basics

Nov 16-20, 2020

Facilitator:

L. Graham-Sterling

Fill in the Blank

What is the major principle that governs the double entry concept?

Fill in the Blank

Who founded the dual aspect principle? What is his country of origin?

Multiple Choice

In every transaction, the "giving of value and the receiving of value" occurs.

• True

• False

Multiple Choice

Double entry means writing a transaction two times only.

• True

• False

Multiple Choice

We record a transaction two times on the debit side and two times on the credit side.

• True

• False

Multiple Choice

The left hand side of the T account means debit and the right hand side means credit.

• True

• False

Fill in the Blank

The double entry rule states that

Fill in the Blank

What are the five categories of Accounting?

Multiple Choice

The double entry rule for assets is debit to increase and credit to decrease.

• True

• False

Multiple Choice

The double entry rule for liabilities states:

debit to record an increase; credit to record a decrease.

• True

• False

Multiple Choice

The double entry rule for income states:

Debit to record an increase; credit to record a decrease.

• True

• False

Multiple Choice

The double entry for capital states:

Credit to record an increase and debit to record a decrease.

• True

• False

Multiple Choice

The double entry rule for expenses states:

Debit to record an increase; credit to record a decrease.

• True

• False

Multiple Choice

Two examples of intangible fixed assets are:

Investment, Goodwill and trademark

• True

• False

Multiple Choice

One example of a current asset is paying too much for a utility bill.

• True

• False

Multiple Choice

One example of a current liability is money owed to workers.

• True

• False

Multiple Choice

Two examples of income/revenue are:

Rent received &

Rent paid

• True

• False

Multiple Choice

Three examples of expenditures are:

Purchases of goods

Utilities paid

salaries or wages paid

Rent paid

• True

• False