UTech FOA Double Entry System Quiz 2023

Which statements are true about the double entry system?

• each transaction is recorded using a minimum to two entries, a debit and a credit.

• The double entry system is used to record business transactions

• the double entry system requires each business transaction be recorded in two separate accounts.

• the double entry system is same as the simple/single system

Which of the statements are incorrect?

• "T" accounts are the simplest form of an account

• The left hand side is called the debit side and the right hand side the credit side

• "T" accounts are maintained in a ledger

• The left hand side is called the credit side and the right hand side the debit side

Which side does assets increase on?

• Debit

• Credit

The owner of the business took some money for personal use. Which side of the capital account would the transaction be recorded on?

• Debit

• Credit

The Accounting Assistant decided to bank the excess funds on hand into the business' bank account. Which is the correct double entry

• Credit Bank and Debit Bank

• Debit Bank and Credit Cash

• Credit Cash and Debit Accounts Receivables

• Debit Bank and Debit CAsh

Identify all the correct statements

• Once you are in operation you will incur expenses

• Expenses are services for which you pay to attain the benefit. Same is now owned.

• Expenses are increased on the credit side of the T account

• Expenses are the value of economic resources used up in the process of obtaining revenues

Which is a list of expenses only?

• Salaries & Wages

  Purchase of goods

  Advertising Utilities

  Rent

• Salaries & Wages

  Motor expenses

  Rental Income

  Utilities

  Commission

• Rent

  Salaries & Wages

  Utilities

  Advertising

  Commission

Revenue is the financial or monetary value of the goods or services provided to customers, where the customer has an obligation to pay for these services.

• True

• False

To record and increase in revenue and an increase in expenses, which sides of each account should the amount be correctly placed on?

• Debit Revenue and Debit Expenses

• Debit Expenses and Credit Revenue

• Credit Expenses and Credit Revenue

• Credit Expenses and Debit Revenue

What is inventory?

• Its an asset

• Goods bought for resale (Merchandise)

• Inventory movement is recorded by either of two systems

• An increase in inventory through Purchases is a debit to the Inventory account