Double Entry Bookkeeping Test

Question 1

The receipt of rent paid by a renter necessitates entries in the bank account and the

Accepted Answer

Rent Received Account

Answer

Insurance Account

Answer

Rent Paid Account

Answer

Office Expenses Account

Question 2

The account's name is always at the top.

Accepted Answer

True

Answer

False

Question 3

Payment of insurance through the bank necessitates the creation of two separate accounts.

Accepted Answer

Insurance Account

Answer

Rent Account

Answer

Petty Cash Account

Question 4

The debit side of the double entry account is on the right.

Accepted Answer

False

Answer

True

Question 5

The DEBIT entry is always made on the ____ side of the ledger.

Accepted Answer

Left

Answer

Middle

Answer

Right

Question 6

Payments to a bank account can take the form of:

Accepted Answer

Sales

Answer

Electricity

Answer

Wages

Answer

Insurance

Question 7

You must ignore how banks refer to debits and credits while utilizing double-entry accounting.

Accepted Answer

True

Answer

False

Question 8

Because__________, a double-entry system is more accurate.

Accepted Answer

All of the above

Answer

Possibilities of frauds is reduced

Answer

Mis—appropriations are minimized

Answer

Arithmetic inaccuracies in records can be checked

Question 9

The definition of the double-entry principle.

Accepted Answer

having debit for every credit and similarly credit for each debit

Answer

maintaining the double account for all business transactions

Answer

writing two times the same entry

Answer

writing all the entries twice in the book