Double Entry
In double-entry bookkeeping, every financial transaction involves which of the following?
A. Only debits
B. Two debits and one credit
C. At least one debit and one credit
D. Only credits
C. At least one debit and one credit
When the school canteen sells a sandwich to a student for cash, how is this recorded in the canteen's ledger?
A. Cash is credited and Sales Revenue is debited
B. Cash is debited and Sales Revenue is credited
C. Only the Expense account is changed
D. No entries are made until the end of the school year
B. Cash is debited and Sales Revenue is credited
What is the standard rate of Value Added Tax (VAT) in the UAE?
A. 0%
B. 10%
C. 5%
D. 15%
C. 5%
If a business buys supplies using cash, what happens to the Cash account?
It is credited (decreases)
When the school canteen buys a brand new refrigerator to store cold drinks, this refrigerator is classified as what in their ledger?
An Asset
What is the main purpose of an accounting ledger?
A. To group and summarize all transactions for a specific account
B. To list daily transactions in chronological order
C. To calculate the exact profit before any sales are made
D. To record employee attendance and work hours
To group and summarize all transactions for a specific account