Chapter Exam

Chapter 3 ACCOUNTANCY : Double Entry Book Keeping System — Online MCQ Test

Q: The fundamental principle of double-entry bookkeeping states that for every debit, there must be a corresponding:

Answer: A. Credit — Double entry system is based on the duality principle, where every transaction affects at least two accounts with equal debit and credit amounts.

Q: Which of the following is classified as a 'Real Account'?

Answer: B. Cash Account — Real accounts relate to assets and properties owned by the business; cash is a tangible asset.

Q: If the business purchases furniture for cash, which accounts are affected?

Answer: A. Furniture (Real) and Cash (Real) — Furniture is a real asset coming in, and cash is a real asset going out.

Q: Which transaction increases both Assets and Liabilities?

Answer: B. Purchased machinery on credit — Purchasing machinery on credit increases the asset (machinery) and simultaneously increases the liability (creditor).

ACCOUNTANCY · CLASS 11 INTER I YEAR · Andhra State Board

Practice Chapter 3 ACCOUNTANCY : Double Entry Book Keeping System with a free chapter-wise online MCQ test for Andhra State Board CLASS 11 INTER I YEAR ACCOUNTANCY. This chapter covers: This chapter covers core double entry principles classification of accounts personal real nominal account rules and accounting equation concepts.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 3 ACCOUNTANCY : Double Entry Book Keeping System — Important Questions & Answers (FAQ)

Frequently asked questions from Andhra State Board CLASS 11 INTER I YEAR ACCOUNTANCY — Chapter 3 ACCOUNTANCY : Double Entry Book Keeping System, with answers and explanations. These are sample questions; the exam has its own separate question set.

The fundamental principle of double-entry bookkeeping states that for every debit, there must be a corresponding:

A. Credit ✓
B. Asset
C. Liability
D. Capital

Answer: A. Credit
Double entry system is based on the duality principle, where every transaction affects at least two accounts with equal debit and credit amounts.

Which of the following is classified as a 'Real Account'?

A. Salary Account
B. Cash Account ✓
C. Ram's Account
D. Outstanding Expenses Account

Answer: B. Cash Account
Real accounts relate to assets and properties owned by the business; cash is a tangible asset.

If the business purchases furniture for cash, which accounts are affected?

A. Furniture (Real) and Cash (Real) ✓
B. Furniture (Nominal) and Cash (Real)
C. Furniture (Personal) and Cash (Real)
D. Furniture (Real) and Capital (Personal)

Answer: A. Furniture (Real) and Cash (Real)
Furniture is a real asset coming in, and cash is a real asset going out.

Which transaction increases both Assets and Liabilities?

A. Purchased goods for cash
B. Purchased machinery on credit ✓
C. Paid off a creditor
D. Withdrew cash for personal use

Answer: B. Purchased machinery on credit
Purchasing machinery on credit increases the asset (machinery) and simultaneously increases the liability (creditor).

Which statement regarding the Double Entry system is PRO?

A. It ensures the trial balance always matches if the books are closed
B. It is based on the logic that debit and credit are just sides of a balance sheet
C. It allows for the systematic recording of financial transactions by maintaining the equality of the equation ✓
D. It records only cash transactions to maintain accuracy

Answer: C. It allows for the systematic recording of financial transactions by maintaining the equality of the equation
The double entry system's primary strength is maintaining the integrity of the accounting equation by recording the dual effect of every transaction.

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