The system of recording transactions based on both debit and credit aspects is called: MCQ with Answer and Explanation

The system of recording transactions based on both debit and credit aspects is called:
A. Single entry system
B. Double entry system
C. Accrual basis system
D. Cash basis system
Answer: Option B
Solution (By JKSSB Mock Tests)
Double entry system records every transaction with a debit and a corresponding credit.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
The Income Tax Act defines 'Assessment Year' as the period of 12 months commencing on:
A. 1st January every year
B. Date of incorporation of the company
C. Diwali every year
D. 1st April every year

Correct Answer: Option D


Explanation:
The Assessment Year in India is a uniform 12-month period beginning on the 1st of April and ending on the 31st of March.

Question #2
Which of the following is not a feature of a company?
A. Separate legal entity
B. Perpetual succession
C. Common seal
D. Unlimited liability

Correct Answer: Option D


Explanation:
Company has limited liability, not unlimited.

Question #3
S1: Vouching is the examination of documentary evidence of transactions. R: Vouching ensures that transactions are authorized and properly recorded. Which statement(s) is/are correct?
A. Both S1 and S2
B. S1 only
C. S2 only
D. Neither S1 nor S2

Correct Answer: Option A


Explanation:
Vouching is the primary audit procedure involving the inspection of vouchers (receipts, invoices) to verify the authenticity of transactions. It ensures transactions are authorized, accurate, and recorded. Both are correct.