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