Double entry means______________?

Related Mcqs:

1. The drawer of a trade bill passes relevant entries with regard to the transaction involved in it. But, in case of an accommodation bill, he passes an entry in addition to the usual entries. The additional entry so passed is with respect to

   A. Discounting of the bill with the bank
   B. Payment of the bill on due date
   C. Remitting or receiving the amount
   D. Sending the bill to bank for collection

2. Double entry implies that

   A. Recording entries in journal
   B. Recording entries in Ledger account
   C. Recording two aspects of every transaction
   D. Recording every transaction in books

3. A brief explanation recorded below every entry in general journal is commonly known as__________?

   A. Narration
   B. Explanation
   C. Summary
   D. Other information

4. A journal entry in which two or more account is debited or credited is referred as____________?

   A. Journal entry
   B. Multi entry
   C. Additional entry
   D. Compound entry

5. For the past 3 years, DK Ltd. has failed to accrue unpaid wages earned by workers during the last week of the year. The amounts omitted, which were considered material, were as follows:
   March 31,2010 – ` 56,000
   March 31, 2011 – ` 51,000
   March 31, 2012 – ` 64,000
   The entry on March 31, 2012 to rectify these omissions would include a

   A. Credit to wage expense for ` 64,000
   B. Debit to wage expense for ` 64,000
   C. Debit to wage expense for ` 51,000
   D. Debit to wage expense for ` 13,000

6. The entry for creating a Provision for bad debts is_____________?

   A. Debit Provision for Bad Debts A/c and credit Debtors A/c
   B. Debit Debtors A/c and credit Provision for Bad Debts A/c
   C. Debit Provision for Bad Debts A/c and credit Profit & Loss A/c
   D. Debit Profit and Loss A/c and credit Provision for Bad Debts A/c.

7. Under which of the following situations, is journal entry not passed in the books of the drawer?

   A. When a discounted bill is honoured by the drawee on the due date
   B. When a bill is sent to the bank for collection
   C. When a bill is renewed at the request of the drawee
   D. When a debtor accepts a bill drawn by the drawer

8. A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book

   A. $1000 will be added to cash book balance
   B. $2000 will be deducted from cash book balance
   C. $3000 will be added to cash book balance
   D. $3000 will be subtracted from cash book balance

9. An entry which is made on both sides of a cash book is called__________?

   A. Cash entry
   B. Contra entry
   C. Payment entry
   D. Compound entry

10. Income earned but not received is called ____________?

    A. Fictitious assets
    B. Quick asset
    C. Real asset
    D. Outstanding asset