Cash Book Quiz-1

cash Book Quiz-1

Quiz

 

1. Which of the following is not a part of ‘cash and cash equivalents’ in a cashbook?
   1.   Money orders
   2.   Cheques
   3.   Special investments
   4.   Coins
2. What does the balance in the cash column indicate?
   1.   Credit
   2.   Debit
   3.   Both of the above
   4.   None of the above
3. What kind of entry happens in a Cashbook?
   1.   Special entry
   2.   Original entry
   3.   Secondary entry
   4.   All of the above
4. Which of the following transactions will not be included in the cashbook?
   1.   Cash receipt from Anil for ₹60,000
   2.   Purchases worth ₹70,000
   3.   Credit sales worth ₹ 80,000
   4.   Cash sales worth ₹ 10,000
5. What is the primary purpose of a cashbook?
   1.   It records receipts and payments of cash
   2.   It records payments of cash
   3.   It records receipts of cash
   4.   It helps to compute the profit and loss of a business
6. How many kinds of cashbooks are there?
   1.   1
   2.   2
   3.   3
   4.   4
7. If a business is already maintaining a cashbook, what does it not have to maintain?
   1.   Sales Book
   2.   Journal Proper
   3.   Cash and bank accounts in the ledger
   4.   Purchase book
8. The credit side of a cashbook is ________:
   1.   The loss side
   2.   The payment side
   3.   The profit side
   4.   The receipt side
9. In case of a cashbook contra entry which of these will not be considered a contra entry?
   1.   Cash is withdrawn from the bank for personal use
   2.   Cash deposited to bank
   3.   Cash is withdrawn from the bank
   4.   All of the above
10. A cheque is received from a creditor and paid into the bank on the same day. How will this transaction be recorded in the cashbook?
    1.   It will be recorded in the cash column of the cashbook
    2.   It will be recorded both in the cash and bank column of the cashbook
    3.   It will be recorded in the bank column of the cashbook
    4.   None of the above
11. In a cashbook, a contra entry involves __________:
    1.   A cash account and a bank account
    2.   A cash account and a discount account
    3.   A cash account and a sales account
    4.   A bank account and a discount account
12. The transaction that does not affect a cashbook is ___________:
    1.   Cheque received from Mr B and deposited in the bank
    2.   Cash paid to creditors for goods purchased from them
    3.   Mobile charges paid from the online company’s bank account
    4.   Depreciation expense recorded for the year
13. Which one of the following transactions will be recorded in the cashbook as a contra entry?
    1.   Cash is withdrawn from the bank for office use
    2.   A cheque that was received earlier is deposited into the company’s bank account
    3.   Cash is deposited in a company’s bank account
    4.   All of the above
14. Which of the following statements about a cashbook is not true
    1.   It is a journalised ledger
    2.   It is a double purpose book
    3.   It records liabilities
    4.   It is a dual book
15. A firm that properly maintains its cashbook does not need to maintain:
    1.   Cash account in the ledger
    2.   Cash receipt journal
    3.   Cash payment journal
    4.   All of the above
16. How do we record the overdrawn balance of a cashbook?
    1.   If debit or credit balance is not mentioned, then it will be an overdrawn balance
    2.   It is credited if the balance is mentioned as an overdrawn balance
    3.   If an overdraft balance is mentioned, then it will be debited on the debit side of the cashbook
    4.   None of the above
17. Once you add a bank column to both sides of a single cashbook, it becomes a _______:
    1.   Petty cashbook
    2.   Double column cashbook
    3.   Triple column cashbook
    4.   None of the above
18. Another name for the debit side of a cashbook is ________
    1.   Income side
    2.   Receipts side
    3.   Expense side
    4.   Payment side
19. On which side of the cashbook will you find the introduction of capital by the owner?
    1.   Expenditure
    2.   Payments
    3.   Receipts
    4.   Income
20. A cashbook serves the following purpose:
    1.   It works as a book of original entry
    2.   It works as a ledger account
    3.   It works as a book of original entry as well as a ledger account
    4.   None of the above