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Questions on Accounts


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Academic Quotes

The first problem for all of us, men and women, is not to learn, but to unlearn - Gloria Steinem

The act of unlearning is an excellent form of learning. Infact, you will need the skills of unlearning if you intend to become an expert in your desired field.

Do yourself a favor by unlearning, learning and re-learning on a daily basis

If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much - Jim Rohn

There's something special about you. It doesn't matter whether you work for a company or someone; what matters is the amount of investment you've made on yourself.

Investing in yourself is the best life plan you can design for your future

Smile - Len Academy

Peace begins with a smile - Mother Teresa

Never underestimate the power of your smile. It can lift up the depressed, improve the mood of the downtrodden and even discourage a suicidal attack. Also remember that your smile makes you more beautiful

Smile always for your own good and the good of others

The only person who is educated is the one who has learned how to learn …and change - Carl Rogers

To perfect your learning process, you must learn, unlearn and re-learn. Infact, we all need to learn how to unlearn those vices we know about ourselves.

Do you know that seeing the devastating consequences of vices (perhaps in movies or real-life) can initiate the unlearning processes in one who does such?

Start where you are. Use what you have. Do what you can - Arthur Ashe

Start now. You've got all it takes to achieve greatness, so no environment can limit you. Just begin something, give in your best and don't stop.

Remember, don't stop giving your best if you truly desire greatness. Nothing can stop you except yourself


According to the principles of the dual entry system, an increase in asset is credited.

  • A. True

  • B. False

ANSWER: False

An increase in asset is always recorded in the debit side of a dual or double entry system of accounting.

As an instance, when person purchases a phone, he or she has a new asset and that's the phone. If he/she were to make a double system entry, the phone (new asset) will be recorded on the debit side while the money spent (decreased asset) will be recorded on the credit side.

You can read on examples of the double entry system here

The followings are true on the double entry system of accounting except _____.

  • A. Errors can't be made

  • B. It can be time consuming

  • C. It can be used as an accounting reference

  • D. It can be used to control a company's expenditure

  • E. There is completion of account transaction

  • F. It isn't difficult to implement

ANSWER: Errors can't be made

The double system of accounting is one that shows recorded transactions at both sides (debit and credit side respectively) of the entries with both having equal values. Errors can be made when such transaction entries are made. (This is true because we are humans).

Note: No one is above mistake.

Please read more on the advantages and limitations of the double entry system

With regards to bookkeeping and accounting, which of the following statement is incorrect?

  • A. Accounting covers the entire practice of finance management

  • B. Bookkeeping is a branch of accounting

  • C. Bookkeeping is a necessary requirement when making financial statement of account

  • D. Bookkeepers record financial transaction in a chronological order

  • E. Accountant earn higher salaries than bookkeepers

  • F. Accounting reports assist business managers in making a more detailed decision

ANSWER: Bookkeeping is a necessary requirement when making financial statement of account

Bookkeeping is defined as all the activities that have to do with the orderly classification and recording of financial data or business transaction. However, it is not a necessary requirement when making financial statement of account.

Please read more on Bookkeeping vs Accounting here

The debited and credited accounts are written in which column of a journal?

  • A. Date

  • B. Particulars

  • C. Folio

  • D. Ledger

  • E. Amount

  • F. None of the above

ANSWER: Particulars

The particulars column of a journal (also called the details column) will contain the debited and credited accounts of a transaction.

The debit account (Dr.) is always written to the left and the credit account (Cr); to the right.

Please read more on Journals here

A journal may also be referred to any of the following except _____.

  • A. Book of original entry

  • B. Book of primary entry

  • C. Book of first entry

  • D. Initial book

  • E. Day book

  • F. Chronological book

ANSWER: Initial book

All the options above may also be used in place of journal except 'initial book'.

Journal isn't an 'initial book'. Rather, it's a chronological book or day book or book of first entry or book of primary entry or book of original book entry.

Which of the following statement is true concerning bank wire?

  • A. Another name for bank wire is cash transfer

  • B. The term 'wire' in bank wire signifies a computer based programmed message sent to a bank customer in regards to their account information, transaction and other important financial notifications

  • C. The International Bank Account Number (IBAN) must always be involved when carrying out a bank wire process

  • D. The term bank wire has no significant relationship with wire transfer

  • E. Cyber criminals cannot utilize bank wire threats like CSRS, phishing and whaling to achieve their fradulent act

  • F. All the above statements are true

Answer: The term 'wire' in bank wire signifies a computer based programmed message sent to a bank customer in regards to their account information, transaction and other important financial notifications

It is important to state that bank wire does not directly mean the transfer of money or payment; rather it refers to a messaging system that allows the bank to efficiently communicate the various events occuring on a client's account.

Please read more on Bank Wire and Wire Transfer here

The following are recommendations to follow during the process of balance sheet reconciliation EXCEPT _____.

  • A. All balance sheet accounts should be reconciled periodically, quarterly or annually

  • B. Comparing the trial balance of both the payables and receivables with the respective aging schedule

  • C. Analysis of enteries and relocating them to a sub-ledger if need be

  • D. Comparing the general ledger trial balance of the account to another source; for instance, a bank statement

  • E. Analysis of the differences in both accounts and making appropriate correction to ensure the correctness of entered information

  • F. None of the above

Answer: None of the above

All the recommendations in the above options are correct (or none of the above options (A-E) are wrong).

Please read more on Balance Sheet Reconciliation here

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Accounts topics

Characteristics of Double Entry System Examples on the Principle of Double Entry System Advantages and Limitations of the Double System in Accounting Scheme of work, Financial Accounting, SS1, Third Term Scheme of work, Financial Accounting, SS1, Second Term Scheme of work, Financial Accounting, SS1, First Term Differences between Bookkeeping and Accounting Journal - Contents, Format, Characteristics and Advantages of Journal Bank Wire and Wire Transfer Chart of Accounts


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