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AFE Quiz 3: Double-Entry Bookkeeping

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  1. What is the fundamental rule of double-entry bookkeeping?




  2. In double-entry bookkeeping, what does every transaction require?




  3. If a business purchases inventory on credit, which accounts are affected?




  4. Which of the following is NOT a “real” account in double-entry bookkeeping (a real account’s balance is never zeroed at year end)?




  5. What is the effect on the books when the owner invests additional cash into the business?




  6. Which type of account is increased by a credit entry?




  7. Which of the following is the correct journal entry for receiving cash from a customer for a previous sale?




  8. What is the purpose of a trial balance in double-entry bookkeeping?




  9. Which of the following is a nominal account (nominal means ‘in name only’ and are usually zeroed at year end)?




  10. In double-entry bookkeeping, what should the debit and credit balances indicate in a trial balance?




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