Accounting Questions and Answers

The double entry system 
Why don't we just adjust the balance sheet and forget making entries in other books of accounting?
What do you think why do we call 'double entry' in Accounting?
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Purchases and sales accounts
What are the uses of sales invoices for the sellers ?
Which are the other records business probably make apart from the accounting record of customers?
Why do businesses check all their invoices both for purchases and sales?
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Purchases and sales return accounts 
Why do firms bother preparing the sales return account and purchase return account why don't they just debit sales return to sales account and credit purchase return to purchase account?
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Stock / Inventory
How to debit and credit stock what are the rules of double entry for stock?
Why do we make two different kind of entries for credit and cash purchase?
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Balancing off accounts
Why would we want to look at the debtors accounts in the accounting books as often as once in a month?
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Trial Balance  
What are the benefits of preparing the 'Trial Balance' when we are going to prepare the income statement and balance sheet?
If trial balance does not seem to be agree what are the steps should be taken?
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Trading profit and loss account and balance sheet
Why have the accounts entered into the income statement been removed from the trial balance?
Why is the balance sheet not the part of double entry system of accounting?
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Accounting concepts
Does prudence concept results in accountants producing financial statements that understate profits and gain therefore present a value for the capital that is lower than it should be?
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Books of original entries 
Why do we bother preparing the books of original entries why don't we just put the entries in the ledger directly?
Why have we more than one ledger account?
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The banking system
How many different forms of plastic cards are there in banking system?
Why do overdraft is cheaper than the bank loan?
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Cash Book
What are the benefits of "folio" column in the cash book?
Why do the cash books contain only the 'discount' column in spite of discount receive and discount allowed columns?
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