Cash Book II (1-10)

1. When goods are purchased for cash, the entry will be recorded in the?

(a) Cash book

(b) Purchases book

(c) Journal

(d) None

Correct! Wrong!

2. The balance of petty cash is?

(a) An asset

(b) A liability

(c) An expense

(d) An income

Correct! Wrong!

3. All of the following are not considered cash except?

(a) Postage and stamps

(b) Securities

(c) Investments

(d) Cheque

Correct! Wrong!

4. Entry representing the reversal or cancellation of an entry on the other side is called?

(a) Closing entry

(b) Contra entry

(c) Bank overdraft

(d) Adjusting entry

Correct! Wrong!

5. The debit side discount column of three column cash book is called?

(a) Trade discount

(b) Cash discount

(c) Discount allowed

(d) Discount received

Correct! Wrong!

6. The total of the ‘Discounts Allowed’ column in the Cash Book is posted to?

(a) The debit of the Discounts Received account

(b) The debit of the Discounts Allowed account

(c) The credit of the Discounts Allowed account

(d) The credit of the Discounts Received account

Correct! Wrong!

7. Cash discount is provided?

(a) Early payment

(b) Late payment

(c) Bulk purchase

(d) Bulk sales

Correct! Wrong!

8. Which of the following explains the imprest system of operating petty cash?

(a) Weekly expenses cannot exceed a set amount

(b)The exact amount of expenses is reimbursed at intervals to maintain a fixed float

(c) All expenses out of the petty cash must be properly authorized

(d) Regular equal amounts of cash are transferred into petty cash at intervals

Correct! Wrong!

9. Which of the following payment is made from petty cash?

(a) Purchase of non-current asset

(b) Payment to creditors

(c) Cash deposited into bank

(d) Payment of postage & telegrams

Correct! Wrong!

10. Which of the following transactions does not decrease cash?

(a) Purchasing inventory for cash

(b) Accruing operating expenses

(c) Paying trade accounts payable

(d) Purchasing securities that are not cash equivalents

Correct! Wrong!

1. When goods are purchased for cash, the entry will be recorded in the?

2. The balance of petty cash is?

3. All of the following are not considered cash except?

4. Entry representing the reversal or cancellation of an entry on the other side is called?

5. The debit side discount column of three column cash book is called?

6. The total of the ‘Discounts Allowed’ column in the Cash Book is posted to?

7. Cash discount is provided?

8. Which of the following explains the imprest system of operating petty cash?

9. Which of the following payment is made from petty cash?

10. Which of the following transactions does not decrease cash?

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