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Questions and Answers
What is the primary distinction between a single entry system and a double entry system?
What is the primary distinction between a single entry system and a double entry system?
- The method of recording transactions (correct)
- The number of entries made in the ledger
- The type of accounts used in the system
- The level of accuracy required in the system
What is the purpose of calculating capital at the end and at the start of a period?
What is the purpose of calculating capital at the end and at the start of a period?
- To determine the net profit or loss
- To calculate the cash and bank balance
- To prepare the statement of financial position
- To determine the change in the owner's equity (correct)
What is the main difference between a statement of affairs and a statement of financial position?
What is the main difference between a statement of affairs and a statement of financial position?
- The date of preparation of the statement
- The type of accounts included in the statement
- The purpose of preparing the statement (correct)
- The format of presentation
Which method of accounting combines features of both single entry and double entry systems?
Which method of accounting combines features of both single entry and double entry systems?
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What is the key feature of a statement of profit or loss prepared by the pure single entry method?
What is the key feature of a statement of profit or loss prepared by the pure single entry method?
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