Double entry system of bookkeeping refers to a system where:
A. the number of accounts with a debit balance must agree with the number of accounts with the credit balance
B. each transaction is recorded twice, once in journal and then in ledger
C. equal debit and credit entries are made for each transaction
D. each transaction is recorded in two set of account books
Answer: Option C
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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