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

• A. True

• B. False

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

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

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

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

Below are the limitations or disadvantages of double entry system of accounting:

1. Increased usage (and cost) of books of accounts.

2. The accounting process can become complex.

3. Mistakes are possible.

4. Recruitment and payment of a professional may be required.

5. It can be time consuming.