In relation to the single-entry system, which of the following statements is INCORRECT?
The single-entry system is a scientific and systematic system of recording and maintaining financial transactions.
The correct answer is option 3. The statement that the single-entry system is "scientific and systematic" is incorrect. The single-entry system is generally not considered scientific or systematic because it lacks the double-entry method, which ensures more accurate and reliable financial records. The other statements are correct, as the single-entry system is an incomplete bookkeeping method, lacks arithmetical accuracy, and is easy to understand but less reliable than double-entry accounting.
Similar Questions
Match the following accounting concepts with the meaning/implications.
Accounting
Concept
Meaning
Implication
(i)
Money
measurement
concept(a)
Capital of the proprietor is considered as a liability
(ii)
Business
entity concept(b)
Fixed assets are
valued on a cost basis(iii)
Going concern concept
(c)
Changes in purchasing power are ignored
Which of the following statements is correct?
A Trial Balance may be prepared according to Totals Method and ________ Method.
If the two sides of the Trial Balance tally, it is an indication that ______.
Kohler defines Single Entry System as, "A System of book-keeping in which as a rule only records of ____ and of personal accounts are maintained".
The technique of finding out the net balance of a ledger account, after considering the totals of both debit and credit sides, is known as ______.
Which of the following statements is INCORRECT?
Which of the following statements is correct?
______ is defined as a statement or a list of all ledger account balances taken from various ledger books on a particular date to check the arithmetical accuracy.
Which of the following are regarded as features of the single-entry system, generally maintained by small shopkeepers?
(i) Maintenance of transactions related to personal accounts on the double-entry basis and maintenance of transactions related to real and nominal accounts on the single-entry basis.
(ii) Maintenance of a cash book with mixed transactions. Normally, both personal and business transactions are mixed in a cash book.
(iii) Form and accounting accuracy of the single-entry system differ from firm to firm.
Important Questions from Basics of Accounting
Professional people like doctors, lawyers, etc., ascertain their profit or loss under
Prepaid Rent A/c is a
“Legal expenses incurred to defend a suit for breach of contract to supply goods” is
Which of the following statements are true?
1. Prepaid rent is a Personal A/c.
2. Interest on Drawings is an income for the business.
3. Accrued income and income due but not received are same.
4. Cost of obtaining licence to carry out business is a capital expenditure.
Match List I with List II.
List I (Accounting Concepts)
List II (Purpose/Applicability)
A.
Going Concern Concept I.
The same accounting method used by a firm from one period to another B.
Consistency II.
Relate to the relative size or importance of an item or event C.
Cost concept III.
This an inappropriate assumption for a firm undergoing bankruptcy D.
Materiality
IV.
The normal basis used to account for assets
Choose the correct answer from the options given below:
