Principles of Double Entry
Accounts · 50 practice questions
Source documents; books of original entry; the accounting equation; the ledger and its classifications; the trial balance; types and correction of errors; the suspense account.
- Identify various source documents and their uses and relate them to the books of original entry.
- Determine the effect of changes in elements of the accounting equation.
- Extract a trial balance from ledger accounts.
- Identify types of errors and correct them, including using a suspense account.
Try a few questions
- Practice question 1
A compensating error specifically occurs when two or more errors of equal amount
- A.reinforce each other, causing the trial balance to be doubly incorrect
- B.are immediately detected and corrected before the trial balance is drawn up
- C.a factor entirely unrelated to the balancing of a trial balance
- D.cancel each other out, so the trial balance still balances
Show the answer
D. cancel each other out, so the trial balance still balances
A compensating error specifically occurs when two or more equal errors cancel each other out, so the trial balance still balances.
- Practice question 2
The rule "debit expenses and losses, credit income and gains" specifically applies traditionally to
- A.nominal accounts under the double entry system
- B.a factor entirely unrelated to nominal accounts of any kind
- C.real (asset) accounts, rather than nominal accounts
- D.personal accounts, rather than nominal accounts
Show the answer
A. nominal accounts under the double entry system
The rule 'debit expenses and losses, credit income and gains' specifically applies traditionally to nominal accounts.
- Practice question 3
The rule "debit the receiver, credit the giver" specifically applies traditionally to
- A.a factor entirely unrelated to personal accounts of any kind
- B.nominal accounts, rather than personal accounts
- C.real (asset) accounts, rather than personal accounts
- D.personal accounts under the double entry system
Show the answer
D. personal accounts under the double entry system
The rule 'debit the receiver, credit the giver' specifically applies traditionally to personal accounts under the double entry system.
More UTME Accounts topics
- Nature and Significance of Bookkeeping and Accounting
- Ethics in Accounting
- Cash Book
- Bank Transactions and Reconciliation Statements
- Final Accounts of a Sole Trader
- Stock Valuation
- Control Accounts and Self-Balancing Ledgers
- Incomplete Records and Single Entry
- Manufacturing Accounts
- Accounts of Not-For-Profit-Making Organizations
- Departmental Accounts
- Branch Accounts
Practise with instant feedback
Answer questions one at a time and see the right answer and the reason straight away. Free to start.
Start practising