BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Every business transaction brings at least two financial changes in business.
|
|
|
Financial changes are recorded as debits or credits in two or more accounts.
|
|
|
Every debit entry has a corresponding credit entry.
|
|
|
All of the above
|
Detailed explanation-1: -The correct answer is Double Entry System. An accounting system that affects at least two accounts simultaneously with every transaction is called a double-entry system. It recognizes every transaction with a dual effect. In a double-entry system If one account is debited, any other account must be credited.
Detailed explanation-2: -Which of the following is not true with a double-entry accounting system? Each business transaction will have two debits.
Detailed explanation-3: -The correct answer is Equal debit and credit entries are made for each transaction. The double Entry System of accounting is based on the dual aspect of accounting.
Detailed explanation-4: -Double-entry accounting is a system that requires two book entries-one debit and one credit-for every transaction within a business. Your books are balanced when the sum of each debit and its corresponding credit equals zero.
Detailed explanation-5: -The main rule for the double-entry system entry is ‘debit the receiver and credit the giver’. The debit entry for a transaction will be on the left side of the general journal, while the credit entry will be on the right side of the journal.