Double_entry

The place that records all the additions and deductions concerning a particular item in the accounting equation is known as

• the double-entry system.

• a balance.

• an account.

• a transaction.

If an account increases, another account on the same side of the accounting equation

• also has to increase.

• has to decrease.

• has to remain unchanged.

• should have a zero balance.

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (2) and (4) only

The correct order of steps for recording a transaction is:

(1)    Classify the accounts into assets, liabilities or capital.

(2)    Enter the date, details, and amount of the transaction in each of the accounts.

(3)    Determine which account should be debited and which account should be credited.

(4)    Identify the accounts that are affected by the transaction.

• (1), (2), (3) then (4)

• (4), (1), (3) then (2)

• (4), (3), (1) then (2)

• (4), (3), (2) then (1)

Credit entries

• decrease assets and increase liabilities.

• decrease both assets and liabilities.

• increase assets and decrease liabilities.

• increase both assets and liabilities.

• $437 Dr

• $437 Cr

• $403 Cr

• $403 Dr

Which of the following accounts of a business will be debited when there is an increase in the amount?

(1) Motor cars

(2) Loan from Luke Ltd

(3) Loan to Mark Co

(4) Creditors

(5) Cash at bank

• (4) and (5) only

• (1), (2) and (5) only

• (1), (3) and (5) only

• (2), (3) and (4) only

Which of the following double entries is correct?

• 
• 
• 
• 

• (1) and (2) only

• (2) and (3) only

• (1), (3) and (4) only

• (2), (3) and (4) only

Balancing off accounts is the process of calculating the outstanding balance of each account at the (a)   of a period.