Double Entry Bookkeeping MCQs

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on July 22, 2022

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.

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Frequently Asked Questions

What are the advantages of a Double-entry Accounting System?

Prevents and minimizes fraud. Frauds can be even detected early. Errors can be checked and rectified easily. The outstanding balances of receivables and payables are determined easily since the personal accounts are maintained.

What is a Double-entry System?

The disadvantages of double-entry Bookkeeping are inflation cannot be handled as money is an inflexible unit of measurement, any events that cannot be expressed in terms of money are not recorded, and it is sometimes difficult to find errors if the wrong amount is entered in the record.

What is a Double-entry System?

What is a Double-entry System?

What is the rule of the Double-entry System?

The rule of double-entry is the foundation of accounting. It states that for every financial transaction, there must be two entries in order to accurately reflect the company’s financial position. This ensures that all transactions are accounted for and provides a more accurate picture of the company’s financial health.

What is the example of a Double-entry System?

One of the most common examples of double-entry accounting is when a company makes a sale. In order to record this transaction, the company would debit (increase) its Accounts Receivable account and credit (increase) its Sales account. This ensures that the company’s books are in balance and reflects the fact that it has earned revenue from the sale.

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®), a member of the Society for Advancing Business Editing and Writing, 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, or check out his speaker profile on the CFA Institute website.

16 thoughts on "Double Entry Bookkeeping MCQs"

    1. 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.

    1. Great! Let us know what other kinds of information you’d like to see and we’ll try to add it in the future. Best of luck!

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

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