Modern system of book keeping is called______________?

Correct answer: A. Double entry system

  • A. Double entry system
  • B. American system
  • C. Single entry system
  • D. Italic system

Explanation

The double-entry system is regarded as the modern system of bookkeeping because it records both sides of each transaction and helps maintain accounting equilibrium. Single-entry bookkeeping is less complete and less systematic.

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About Accounting Principles

Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.

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