Topics in AccountsCharacteristics 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 Meaning, Importance, Processes, Examples and Steps in Balance Sheet Reconciliations
Academic Questions in Accounts
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
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
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Understanding the processes of the double system in accounting is fundamental to every accounting student.
By definition, the double or dual system of accounting is one that shows recorded transactions at both sides (Debit - Dr.) and (credit - Cr.) of the entries with both having equal values.
Through the records shown in a double entry, we can easily map out the direction of a business. In fact, the accountants or bookkeepers of a business will often record what goes in and out of the business in order to properly carry out their duty. This dual recordings done by accountants is exactly what the double system of accounting entails; and this must follow certain principles.
Below are the advantages of the double system of accounting:
There is completeness of account transactions.
Please read on Balance Sheet Reconciliation here.
It can be used to determine the profit or loss of a company.
Please read on the Concept and Types of Cost here.
It can be used to determine the number of assets and liability.
Please read on the Concept of Business Studies here.
It can be used to control a company’s expenditure.
Please read on Business Structure (Sole Proprietorship), Its Advantages and Disadvantages here.
It helps businesses to run smoothly by giving accurate information.
Please read on Scale of Preference and Opportunity Cost here.
It is not difficult to implement.
It helps a business to understand the price of various commodities.
Please read on the Elasticity of Supply here.
It prevents account manipulation.
It can be used as an accounting reference.
Increased usage (and cost) of books of accounts.
The accounting process can become complex.
You can read on the Differences between Bookkeeping and Accounting here.
Mistakes are possible (No one is above mistake).
Recruitment and payment of a professional may be required.
It can be time consuming.
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Amazing facts in Accounts
It is believed that Bookkeeping is the only English word to contain three sets of double letters repeatedly.please read our article on bookkeeping vs Accounting here
NOTABLE POINTS IN Accounts