Unit 2: Single Entry

Question 1

A record of record-keeping in which transactions are not analyzed and recorded in the double-entry framework is called a ___________.

Answer 1

Single entry system.

Question 2

[T/F]. When the records are incomplete, they are said to be maintained on a single entry basis.

Answer 2

True. (Valix)

Question 3

The major record under the single entry system is the ________.

Answer 3

Cashbook.

Question 4

[T/F]. Because in a single-entry system no specific accounts for receipts and disbursements are debited or credited, only a description thereof is made.

Answer 4

True.

Question 5

[T/F]. With respect to AR and AP, only a list of customers and creditors is made with their corresponding balances.

Answer 5

True.

Question 6

The single entry method of determining net income/loss is also known as _________ approach or “capital maintenance” approach.

Answer 6

Net assets approach.

Question 7

In the computation of net income, share dividends issued below 20-__% are recorded at FV and not at cost, since they have little effect on the market value.

Answer 7

dividends issued at 20-25% are recorded at FV, and not at cost.