JSS 1 Business Studies Flashcards: Meaning, Accounts and Rules of Double Entry Book-keeping

Question 1

One transaction affects two accounts with equal debit and credit entries. Name the recording system.

Accepted Answer

double entry

Question 2

Cash, equipment and stock are resources owned by a business. They belong to what class of account?

Accepted Answer

asset account

Question 3

A bank loan is an amount the business owes. It belongs in a ____.

Accepted Answer

liability account

Question 4

Rent and transport costs are recorded in what class of account?

Accepted Answer

expense account

Question 5

The owner's financial claim on the business is recorded in the ____.

Accepted Answer

equity account

Question 6

On a T-account, entries on the left are called ____.

Accepted Answer

debit

Question 7

Complete the convention: the left side is debit; the right side is ____.

Accepted Answer

credit

Question 8

Assets = Liabilities + Equity is known as the ____.

Accepted Answer

accounting equation

Question 9

Under double entry, how many accounts must a transaction affect at minimum?

Accepted Answer

two accounts

Question 10

For each transaction, total debit must match total credit in ____.

Accepted Answer

equal amounts

Question 11

A firm buys a printer for cash: Equipment is debited and Cash is credited. What transaction has been recorded?

Accepted Answer

cash purchase of equipment

Question 12

The owner deposits ₦100,000 into the business bank account: Cash is debited and Capital credited. Interpret the entry.

Accepted Answer

cash introduced by owner

Question 13

Rent Expense is debited while Cash is credited. What event produced this entry?

Accepted Answer

payment of rent

Question 14

Office furniture is obtained now and the supplier will be paid later. The entry debits the asset and credits the supplier. Classify the purchase.

Accepted Answer

purchase on credit

Question 15

Before choosing debit and credit, a bookkeeper identifies the accounts affected and how each changes. This step is ____.

Accepted Answer

transaction analysis

Question 16

Deciding that Cash is an asset and Rent is an expense is the ____ step.

Accepted Answer

classification

Question 17

Individual Cash, Rent and Capital accounts are collected in the ____.

Accepted Answer

ledger

Question 18

After posting, the debit and credit balances are listed to compare their totals. Name this list.

Accepted Answer

trial balance

Question 19

A difference between trial-balance totals alerts the bookkeeper to investigate. State this advantage of double entry.

Accepted Answer

error detection

Question 20

A program posts entries and calculates balances automatically. Name this digital tool.

Accepted Answer

accounting software

Strong work.