Home » MCQs » Book of original entries - Cash book MCQs

1)

The closing balance of petty cash book is considered as

A)  LiabilityWRONG ANSWER

B)  AssetRIGHT ANSWER!!!

C)  ExpensesWRONG ANSWER

D)  IncomeWRONG ANSWER


2)

Payment of rent expenses is recorded on which side of cash book?

A)  ReceiptsWRONG ANSWER

B)  PaymentsRIGHT ANSWER!!!

C)  IncomeWRONG ANSWER

D)  ExpenseWRONG ANSWER


3)

An entry which is made on both sides of a cash book is called

A)  Cash entryWRONG ANSWER

B)  Contra entryRIGHT ANSWER!!!

C)  Payment entryWRONG ANSWER

D)  Compound entryWRONG ANSWER


4)

A cash book with cash, bank and discount column is commonly referred as

A)  Cash bookWRONG ANSWER

B)  Two columns cash bookWRONG ANSWER

C)  Three columns cash bookRIGHT ANSWER!!!

D)  Petty cash bookWRONG ANSWER


5)

Cash book records

A)  Cash paymentsWRONG ANSWER

B)  Cash receiptsWRONG ANSWER

C)  Cash payments and cash receiptsRIGHT ANSWER!!!

D)  Neither cash payments nor cash receipts WRONG ANSWER


6)

Cash discount is allowed on _______ repayment of debt

A)  Lump sumWRONG ANSWER

B)  PromptRIGHT ANSWER!!!

C)  ActualWRONG ANSWER

D)  None of themWRONG ANSWER


7)

Cash book is prepared by

A)  BankWRONG ANSWER

B)  Accountant of businessRIGHT ANSWER!!!

C)  Manager of a companyWRONG ANSWER

D)  Bank's cashierWRONG ANSWER


8)

The most common imprest system is the ________ system

A)  petty cashRIGHT ANSWER!!!

B)  Cash bookWRONG ANSWER

C)  Cash receiptWRONG ANSWER

D)  DiscountWRONG ANSWER


9)

Discount received is recorded on which of the following side of a cash book?

A)  ReceiptsWRONG ANSWER

B)  PaymentsRIGHT ANSWER!!!

C)  IncomesWRONG ANSWER

D)  ExpendituresWRONG ANSWER


10)

Drawings by owner of business are generally recorded on which of the following side of a cash book?

A)  ReceiptsWRONG ANSWER

B)  PaymentsRIGHT ANSWER!!!

C)  IncomesWRONG ANSWER

D)  ExpendituresWRONG ANSWER








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