S3 Intro to Double Entry/Ledgers

Who developed the double entry bookkeeping system?

• Scientists

• Merchants and traders

• Politicians

• Teachers

What did the book used in the double entry system detail?

• Personal information of the traders

• All amounts spent, earned, owed or owing

• Recipes for cooking

• Adventure stories

What was the book used in the double entry system called?

• Journal

• Ledger

• Diary

• Register

Why is it called "double entry" in accounting?

• Because the transactions are entered twice for verification purposes.

• Because every transaction is recorded in two separate ledgers.

• Because it requires two different accountants to enter the data.

• Because transactions are recorded at the beginning and end of the day.

What are the two types of entries used in every transaction?

• Income and Expense

• Asset and Liability

• Debit and Credit

• Cash and Accrual

How are the terms "Debit" and "Credit" often shortened in accounts?

• Db and Cd

• Dt and Ct

• Dr and Cr

• De and Ce

When J Whyte started his business with £5,000 in equity, which account should be credited?

• Furniture

• Machinery

• Equity

• Bank

When J Whyte bought machinery for £2,000 and paid for this by cheque, which account should be debited?

• Furniture

• Machinery

• Equity

• Bank

When J Whyte bought machinery for £2,000 and paid for this by cheque, which account should be credited?

• Furniture

• Machinery

• Equity

• Bank

When J Whyte bought furniture for £500 and paid for this by cheque, which account should be debited?

• Furniture

• Machinery

• Equity

• Bank