Cash Book I (11-20)

11. Which of the following items is not considered as cash or cash equivalent?

(a) Cash on hand

(b) Bank borrowings

(c) Demand deposits

(d) Investments with a maturity of two months from the date of acquisition

Correct! Wrong!

12. The Cash of a business would change as a result of?

(a) A supplier being paid by check and deposited

(b) Raw materials being purchased on credit

(c) Non-current assets being purchased on credit

(d) Wages being paid in cash

Correct! Wrong!

13. Contra entry is recorded in?

(a) Double column cash book

(b) Single column cash book

(c) Three column cash book

(d) a and c

Correct! Wrong!

14. A book in which cash balance and bank balance are simultaneously maintained is known as?

(a) Simple cash book

(b) Single column cash book

(c) Double column cash book

(d) None-of these

Correct! Wrong!

15. If a business shows a debit balance in its own record of its bank balance, this indicates?

(a) The business has a bank overdraft

(b) The business is a debtor in the books of bank

(c) The business has money in the bank

(d) The ledger entry must be wrong

Correct! Wrong!

16. The unfavorable balance of cash in cash book is?

(a) An expense

(b) Liability

(c) A gain

(d) An Asset

Correct! Wrong!

17. When a company received check from customer. The effect of the transaction is to?

(a) Increase assets and decrease assets

(b) Increase assets and liabilities

(c) Decrease assets and liabilities

(d) Increase assets and stockholder's equity

Correct! Wrong!

18. Cash book involves the?

(a) For payment transactions

(b) Both payment and receipt transactions

(c) For receipt transactions

(d) None

Correct! Wrong!

19. The transaction will be treated as a contra entry when?

(a) Cash withdrew from bank for domestic use

(b) Check received from customer and deposited

(c) Cash drew from bank for Business Use

(d) All of given options

Correct! Wrong!

20. When a check is received from a customer and it is deposited into the bank for collection but ultimately returned dishonored, the customer account will be?

(a) Debited

(b) Credited

(c) Becomes a liability

(d) None of these

Correct! Wrong!

11. Which of the following items is not considered as cash or cash equivalent?

12. The Cash of a business would change as a result of?

13. Contra entry is recorded in?

14. A book in which cash balance and bank balance are simultaneously maintained is known as?

15. If a business shows a debit balance in its own record of its bank balance, this indicates?

16. The unfavorable balance of cash in cash book is?

17. When a company received check from customer. The effect of the transaction is to?

18. Cash book involves the?

19. The transaction will be treated as a contra entry when?

20. When a check is received from a customer and it is deposited into the bank for collection but ultimately returned dishonored, the customer account will be?

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