10 Questions
Which of the following best describes bookkeeping?
The process of recording data related to accounting transactions
Which system requires every transaction to affect two items?
Double entry system
What is the effect of recording an expense in an account?
Debit decreases assets
When an owner starts a business with cash, how is the transaction recorded?
Debit Cash/Bank A/C, Credit Equity A/C
What is the effect of recording a sale of goods for cash?
Debit Cash/Bank A/C, Credit Sales A/C
What is the purpose of double entry bookkeeping?
To ensure that every transaction affects two items
How are expenses recorded in an account?
Debit
What is the effect of recording a purchase of non-current assets with cash?
Debit Equipment A/C, Credit Cash/Bank A/C
How is a purchase of goods for resale on credit recorded?
Debit Purchases A/C, Credit Trade Payable
What is the effect of recording a sale of goods for cash?
Debit Sales A/C, Credit Cash/Bank A/C
Test your knowledge of bookkeeping with this quiz! Learn about the double entry system, how transactions affect accounts, and more. Perfect for accounting students and professionals looking to brush up on their skills.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
