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State True Or False. Only Cash Transactions and Personal Transactions Are Recorded in Single Entry. - Book Keeping and Accountancy

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Question

State True or False.
Only cash transactions and personal transactions are recorded in Single entry.

Options

  • True

  • False

MCQ
True or False
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Solution

True

Explanation: 
Only transactions related to cash and personal accounts are recorded under single-entry system. Real and nominal accounts are ignored. As accounts under single-entry are maintained by small businesses with limited number of transactions, incomplete records are maintained under this system.

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Chapter 8: Single entry System - Exercise 4 [Page 259]

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