The double entry principle states that
Every debit entry must have a corresponding credit entry
Every credit entry must have a corresponding double entry
Every debit must must have a corresponding double entry
Every assets must have a corresponding liability
Correct answer is A
No explanation has been provided for this answer.
In the preparation of bank reconciliation statement cheque are
Added to the balance as per bank statement
Deduced from the the balance as per bank statement
Added to the balance as per bank statement
Ignored totally
Correct answer is A
Using the cash balance shown on the bank statement, add back any deposits in transit. Deduct any outstanding checks. This will provide the adjusted bank cash balance. Next, use the company's ending cash balance, add any interest earned and notes receivable amount.
All balances should be added to the bank statement
Adjustment account
Suspense account
Imprest account
Appropriation account
Correct answer is B
No explanation has been provided for this answer.
The balance in a sales Ledger Counter Account indicates the
Difference between debtors and creditors
Total sales
Total purchases
Total debtors
Correct answer is D
It represents the total balance of credit sales otherwise known as trade debtors
Which of the following is added to the proprietor's capital?
Net profit
Gross profit
Net sales
Gross sales
Correct answer is A
Net profit is the actual profit after working expenses not included in the calculation of gross profit have been paid. That is, it is the profit after expenses have been deducted from gross profit. It makes up part of the business capital called plough-back profit.