Are not important in cashbooks
Are cash items only
Do not form part of double entry
Are used for bank reconciliation
Correct answer is C
No explanation has been provided for this answer.
The suspense account is used to correct book-keeping error where the
Amount involved is quite significant
Item involved is not material
Item involved is unknown
Error does not affect the agreement of the trial balance
Correct answer is C
Suspense accounts are used when your trial balance is out of balance or when you have an unidentified transaction. The suspense account is a general ledger account that acts as a holding account until the error is discovered or the unknown transaction is identified.
The use of the folio in the ledger is for
Referencing purposes
Particulars of the transaction
The account titles
Only credit items
Correct answer is A
The folio number is a way to reference a bookkeeping entry, most often numbered in chronological or sequential order.
Error of commission
Error of reversal of entries
Error of principle
Compensating error
Correct answer is C
No explanation has been provided for this answer.
What is the cardinal rule of the double entry system?
Debit the increasing account and credit the decreasing account
Debit the receiving account and credit the giving account
Debit the asset account and credit the liability account
Debit the revenue account and credit the expenditure account
Correct answer is B
No explanation has been provided for this answer.