Cash Book Quiz-2

Cash Book Quiz-2

Quiz

 

1. Cash in hand A/c may have
   1.   Only credit balance.
   2.   Only debit balance.
   3.   Debit or credit balance.
   4.   None of the above
2. Which individual is typically responsible for maintaining the petty cash book?
   1.   Chief Financial Officer (CFO)
   2.   External auditor
   3.   Petty cash custodian
   4.   Bank manager
3. Which type of cash book is commonly used by nonprofit organizations or small businesses for tracking cash expenditures?
   1.   Single column cash book
   2.   Double column cash book
   3.   Triple column cash book
   4.   Petty cash book
4. If a company receives cash from a debtor, which column(s) in the cash book will be affected?
   1.   Cash column
   2.   Bank column
   3.   Cash and Bank columns
   4.   Credit column
5. The balance of cash book shows
   1.   Net income.
   2.   Cash in hand.
   3.   Net expenditure.
   4.   Net bank balance.
6. In a petty cash book, what is the main difference between the debit and credit sides?
   1.   Debit side records cash purchases, credit side records credit purchases
   2.   Debit side records receipts, credit side records payments
   3.   Debit side records payments, credit side records receipts
   4.   Debit side records cash, credit side records bank transactions
7. Which of the following is both a book of journal and ledger?
   1.   Cash book
   2.   General journal
   3.   Purchases journal
   4.   Sales journal
8. Bank overdraft is shown on the———side of the Cash book:
   1.   Debit
   2.   Credit
   3.   Either Debit or Credit
   4.   None
9. Simple petty cash book is like a
   1.   cash book
   2.   statement
   3.   journal
   4.   None of these
10. When a cash book shows a credit balance, what does this indicate?
    1.   The business owes money to the bank
    2.   The business owes money to creditors
    3.   The business has more cash than its liabilities
    4.   The busines is in financial trouble
11. Which of the following transactions would be recorded in the cash column of a double column cash book?
    1.   Cash sales
    2.   Credit sales
    3.   Purchase on credit
    4.   Payment made by check
12. What type of transaction would be recorded in the bank column of a cash book?
    1.   Cash received from customers
    2.   Cash paid for expenses
    3.   Cash purchases
    4.   Deposit into the bank account
13. Which of the following is NOT a purpose of the cash book?
    1.   Monitoring cash balances
    2.   Recording credit sales
    3.   Reconciling bank statements
    4.   Tracking cash receipts and payments
14. Which statement is true regarding a cash book with a credit balance in the bank column?
    1.   The business has overdrawn its bank account
    2.   The business has more cash payments than cash receipts
    3.   The business has more cash payments than bank deposits
    4.   The business has more cash in the bank than the amount shown
15. In a cash book, which side is used to record cash receipts?
    1.   Left side
    2.   Right side
    3.   Top side
    4.   Bottom side
16. Which type of cash book is suitable for a business that conducts mostly cash transactions?
    1.   Single column cash book
    2.   Double column cash book
    3.   Triple column cash book
    4.   Petty cash book
17. Cash withdrawn from bank for office use will be entered in which columns of Cash / Bank Book
    1.   Cash column in Debit side only
    2.   Cash column in Credit side only
    3.   Cash column in Debit side and Bank Column in Credit side.
    4.   Bank column in Debit side & Cash column in Credit side.
18. What is the main advantage of using a cash book in accounting?
    1.   It helps prevent fraud
    2.   It eliminates the need for bank accounts
    3.   It provides a detailed record of cash transactions
    4.   It automatically generates financial statements
19. What is the purpose of a petty cash book in accounting?
    1.   To record large cash transactions
    2.   To record only cash sales
    3.   To track small cash expenditures
    4.   To record credit transactions
20. The balance of Bank column of Cash Book is ———-balance :
    1.   Debit
    2.   Credit
    3.   Either Debit or Credit
    4.   None