The Four Rules Of Double Entry

Question 1

Assets

Answer 1

What the business owns

Question 2

Fixed Assets

Answer 2

Property or possessions which are used in the business
! Not for resale !
Long term

Question 3

Fixed Assets examples

Answer 3

Buildings
Machinery
Fixtures & Fittings
Office Equipment
Land
Vehicles
Premises
Furniture

Question 4

Current Assets

Answer 4

Those assets which are expected to be cashed within one year
Short term > year

Question 5

Current Assets examples

Answer 5

Closing stock
Petty cash
Debtors
Cash
Bank

Revenues due
Expenses prepaid

Question 6

Debtors

Answer 6

Someone who owes me money
Sold goods on credit to them

Question 7

Creditors

Answer 7

Someone I owe money to

Question 8

Creditors

Answer 8

Someone I owe money to

Question 9

Closing stock

Answer 9

the amount of unsold goods that remain with the business on a given date, and are waiting to be sold.

Question 10

Petty cash

Answer 10

a small amount of money kept on hand for the purpose of making small payments such as office supplies, postage, and other small expenses.
(Buying small things when they are needed.)

Question 11

Closing stock

Answer 11

the amount of the unsold stock in the business on a given date, waiting to be sold.

Question 12

P=C
S=D

Answer 12

Politically correct snoop dogg

Purchases on credit affect creditors
Sales on credit affect debtors

Question 13

Which side is dr. And cr. on

Answer 13

Dr = left
Cr = right

Question 14

In a double entry for assets what does dr record

Answer 14

Assets and increases in an asset

Question 15

In a double entry for assets what does cr record

Answer 15

Any decrease in an asset