Double Entry Bookkeeping MCQs

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on November 16, 2021

This quiz on double entry bookkeeping is helpful preparation for accounting and finance students who are sitting exams or participating in interviews. If you are unsure about any of the questions, you would benefit from first reading our entries on double entry bookkeeping.

1. In simple words, the occurrence of something is called a:

2. Events related to money are called:

3. Events unrelated to money are called:

4. A dealing between two parties for a particular thing is called a:

5. Transactions involving a business and a second outside party are called:

6. Transactions that do not involve an outside party are called:

7. The double entry accounting system is:

8. One of the items below is not an advantage of the double entry accounting system.

9. The accounting equation can be expressed as follows:

10. One of the items below is not a transaction.

11. A customer returns goods to a supplier. How does the supplier record this in his ledger?
Accounts to be debitedAccounts to be credited
ACustomerPurchase returns
BCustomerSales returns
CPurchase returnsCustomer
DSales returnsCustomer

12. A company buys goods on credit from the private fund of a proprietor. What will the effect be on assets and liabilities?
Effect on assetsEffect on liabilities
AReduce bankReduce creditors
BIncrease cashNo effect
CIncrease cashDecrease loan
DIncrease stockIncrease capital

13. Identify the incorrect statement:
Effect on
APaid creditors by check- Bank+ Creditors
BBought goods on credit+ Stock+ Creditors
CReceived cash from debtor+ Cash, - Debtors
DSold goods for cash+ Cash, - Stock


True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, his interview on CBS, or check out his speaker profile on the CFA Institute website.

14 thoughts on “Double Entry Bookkeeping MCQs”

    • Double Entry Bookkeeping can be tricky to understand, but you can do it! Drop us a line if there is another topic you’d like to see and we’ll try to add it in the future.

    • We’re glad you were able to practice for your exam using our examples. Repetition is a successful technique, for sure. Good luck!


Leave a Comment