Ryan account 3rd CA.

What does the double entry system means?

• Every transaction affects only one account

• Every transaction affects two or more accounts

• Only assets are affected

• Only liabilities are affected

Pick the correct accounting equation from the options listed below

• Assets= liabilities

• Assets = Liabilities+ Capital

• Liabilities = Capital + Revenue

• Assets = Liabilities + Equity

What is a debit entry in the double entry system?

• An increase in liabilities

• An increase in assets

• A decrease in assets

• A decrease in liabilities

What is a credit entry in the double entry system?

• An increase in liabilities

• An increase in assets

• A decrease in equity

• A decrease in revenue

What is a ledger in accounting?

• A record of business transaction

• A type of balance sheet

• A bank statement

• All of the above

Financial transaction may divided into-----

• Cash and credit transaction

• Cash and assets transaction

• Assets and liabilities transactions

• All of the above

When transfer of ownership occured before payment is made to supplier, this means --

• Assets transfer

• Credit transfer

• Money transfer

• Liabilities transfer

In double entry system, credit is --- account

• Giving

• Receiving

• Buying

• None of the above

An account for something we can see, touch or move is ---

• Nominal account

• Impersonal account

• Real account

• Personal account

Impersonal account is divided into-----and --

• Nominal and account receivable

• Real and nominal account

• Payable and receivable account

• All of the above