BOOKKEEPING DOUBLE ENTRY EXAM
QUESTIONS WITH CORRECT ANSWERS
Double entry accounting - ANSWER-A method of bookkeeping which records each
financial transaction twice using debits and credits.
Double entry bookkeeping system - ANSWER-A method of bookkeeping that reflects
the dual nature of each transaction as it affects the business.
Ledger - ANSWER-A book in which entries posted from the journals are re-organized
into accounts.
Journal - ANSWER-A book or set of books where your transactions are first entered.
Journal entries - ANSWER-A term used to describe the transactions recorded in a
journal.
T Account - ANSWER-A particular method of displaying an account where the debits
and associated information are shown on the left, and credits and associated
information on the right.
Trial Balance - ANSWER-A statement showing all the accounts used in a business and
their balances.
Balance B/D - ANSWER-The balance brought down as opening balance of a ledger
pulled from previous accounting period.
Balance C/D - ANSWER-The balance carried down as the closing balance of a ledger
pushed to the next accounting period.
Debit Balance - ANSWER-If Debit side > Credit side
Credit Balance - ANSWER-If Credit side > Debit side
Debit - ANSWER-An accounting entry that either increases an asset or expense
account, or decreases a liability or equity account. It is positioned to the left in an
accounting entry.
Credit - ANSWER-An accounting entry that either increases a liability or equity account,
or decreases an asset or expense account. It is positioned to the right in an accounting
entry.
Business transactions - ANSWER-The events that have a monetary impact on the
financial statements of an organization
QUESTIONS WITH CORRECT ANSWERS
Double entry accounting - ANSWER-A method of bookkeeping which records each
financial transaction twice using debits and credits.
Double entry bookkeeping system - ANSWER-A method of bookkeeping that reflects
the dual nature of each transaction as it affects the business.
Ledger - ANSWER-A book in which entries posted from the journals are re-organized
into accounts.
Journal - ANSWER-A book or set of books where your transactions are first entered.
Journal entries - ANSWER-A term used to describe the transactions recorded in a
journal.
T Account - ANSWER-A particular method of displaying an account where the debits
and associated information are shown on the left, and credits and associated
information on the right.
Trial Balance - ANSWER-A statement showing all the accounts used in a business and
their balances.
Balance B/D - ANSWER-The balance brought down as opening balance of a ledger
pulled from previous accounting period.
Balance C/D - ANSWER-The balance carried down as the closing balance of a ledger
pushed to the next accounting period.
Debit Balance - ANSWER-If Debit side > Credit side
Credit Balance - ANSWER-If Credit side > Debit side
Debit - ANSWER-An accounting entry that either increases an asset or expense
account, or decreases a liability or equity account. It is positioned to the left in an
accounting entry.
Credit - ANSWER-An accounting entry that either increases a liability or equity account,
or decreases an asset or expense account. It is positioned to the right in an accounting
entry.
Business transactions - ANSWER-The events that have a monetary impact on the
financial statements of an organization
