Book of original entries - Cash book MCQs

11)

Introduction capital by owner of business is recorded on which side of a cash book?

A)  ReceiptsRIGHT ANSWER!!!

B)  PaymentsWRONG ANSWER

C)  IncomesWRONG ANSWER

D)  ExpendituresWRONG ANSWER


12)

Cash book with cash and discount column is mostly referred as

A)  Simple cash bookWRONG ANSWER

B)  Two column cash bookRIGHT ANSWER!!!

C)  Three column cash bookWRONG ANSWER

D)  Petty cash bookWRONG ANSWER


13)

A cash book that is used to record the small payments of cash is generally referred as

A)  Simple cash bookWRONG ANSWER

B)  Two column cash bookWRONG ANSWER

C)  Three column cash bookWRONG ANSWER

D)  Petty cash bookRIGHT ANSWER!!!


14)

A simple or one column cash book usually has which of the following main columns?

A)  BankWRONG ANSWER

B)  PaymentsWRONG ANSWER

C)  DiscountWRONG ANSWER

D)  CashRIGHT ANSWER!!!


15)

Purchase of office equipment for cash will be recorded on which of the following sides of a cash book?

A)  ReceiptsWRONG ANSWER

B)  PaymentsRIGHT ANSWER!!!

C)  IncomesWRONG ANSWER

D)  ExpendituresWRONG ANSWER


16)

Postdated checks are considered as

A)  CashWRONG ANSWER

B)  Bank balanceWRONG ANSWER

C)  Accounts receivableRIGHT ANSWER!!!

D)  Cash reserveWRONG ANSWER


17)

Postage stamps on hand are considered as

A)  BankWRONG ANSWER

B)  Prepaid expensesRIGHT ANSWER!!!

C)  Accounts receivable WRONG ANSWER

D)  CreditorWRONG ANSWER


18)

Petty cash fund is supposed to be replenished

A)  Every dayWRONG ANSWER

B)  Every half yearWRONG ANSWER

C)  Every yearWRONG ANSWER

D)  At the end of every accounting periodRIGHT ANSWER!!!


19)

Which of the following is generally not the party to a check?

A)  PayeeWRONG ANSWER

B)  PayerWRONG ANSWER

C)  BankWRONG ANSWER

D)  SellerRIGHT ANSWER!!!


20)

A credit balance in cash book indicates

A)  Bank balanceWRONG ANSWER

B)  Cash at bankWRONG ANSWER

C)  Bank overdraftRIGHT ANSWER!!!

D)  Bank underdraftWRONG ANSWER