GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What are the advantage of double entry system?
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Lesser possibility of fraud
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Arithmetical accuracy of records
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Helps users of accounting information
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All of the above
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Explanation:
Detailed explanation-1: -Prevents and minimizes frauds. Frauds can be even detected early. Errors can be checked and rectified easily. The outstanding balances of receivables and payables are determined easily since the personal accounts are maintained.
Detailed explanation-2: -Expert-Verified Answer Double entry system records both aspects (debit and credit) of each transaction. So, it is a complete system of book keeping. It is suitable for large business companies with large volume of financial transactions and resources. Trial balance is prepared under double entry system.
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