Recording and Posting of Cash Transactions Test 1

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Recording and Posting of Cash Transactions Test 1

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Weekly Quiz Competition

Question 1
1 / -0

Book keeping is meant to show all the transactions.

A
Of the whole year

B
Of the accounting period

C
Of half year

D
All of the above
Question 2
1 / -0

Cash book is prepared on.....

A
Accrual basis

B
Cash basis

C
Hybrid basis

D
Single entry system basis
Question 3
1 / -0

The balance of the Petty Cash Book is ___________.

A
An asset

B
A liability

C
An income

D
An expenditure

Solution

Petty cash book is used to record the day to day small value transactions. Balance lying in petty cash book is as good as cash balance. Cash is an asset for the business.
Question 4
1 / -0

The credit balance in the bank account is_______.

A
An asset

B
A liability

C
An expense

D
Contingent liability

Solution

A credit balance in bank account means that the person in whose account this belongs to is under an obligation to pay the bank back the entitlement of such balances. This money has been owned to the account holder by the bank and must be repaid i.e. it is a liability.
Question 5
1 / -0

A Cheque received and paid into the bank on the same day is recorded in the ____________.

A
Cash column of the cash book

B
Bank column of the cash book

C
Both the cash and bank columns of the book

D
The credit balance as per pass book

Solution

Cash book is having two columns i.e cash and bank column. When a cheque is received and deposited on the same day in to the bank, this will be recorded in bank column of the cash book.
Question 6
1 / -0

Cash book prepared on imprest system is_________.

A
Two Column Cash Book

B
Cash Book

C
Petty Cash Book

D
Purchase Book

Solution

A large number of small payments are recorded in separate cash book such a cash book is maintained by petty cashier is called as petty cash book. The petty cashier works on the "Imprest system" under this system a definite amount is given to petty cashier at the beginning of certain period. This amount is called "Imprest amount". The petty cashier makes small payments out of this imprest amount, when he spent substantial amount he gets reimbursement of amount spent from head cashier.
Question 7
1 / -0

The discount column of a triple column cash book records __________.

A
Trade discount

B
Cash discount

C
Quantity discount

D
Seasonal discount

Solution

Cash Book may have two or three columns. When only Cash and Bank are considered while making the cash book, its a two column cash book.

Some times in a business, creditors are allowing cash discount while purchasing the goods on cash basis or the organization is allowing a cash discount while making sales in cash. In such situations, one more column of cash discount is added in cash book. This is a triple column cash book.
Question 8
1 / -0

The balance of cash account indicates ___________.

A
Net income for the Period

B
Net loss for the Period

C
Net worth of the Business

D
Net cash on Hand

Solution

All cash transactions are recorded in cash book. It is having two sides i.e. receipts and payment. Balance of cash is the difference of receipts and payment. It indicates the net position of cash on hand.
Cash on hand is current assets and to be shown in balance sheet as assets.
Question 9
1 / -0

The cash book records ____________.

A
All cash payments

B
All cash receipts

C
All cash receipts and payments

D
Only credit payments

Solution

Cash book records all cash transactions of receipts and payments. Different type of cash book is used depending on the requirement of the business i.e two column cash book, three column cash book. Cash book records all the transaction which includes revenue and capital both.
Question 10
1 / -0

Petty cash may be used to pay _________.

A
The expenses relating to postage and conveyance

B
Salaries and wages to the final staff

C
For the purchase of furniture and fittings

D
Other recurring expenses

Solution

There are two kinds of cash book i.e. Main Cash Book and Petty Cash Book. Petty cash book is used to record small value expense items.
A petty cash fund is a small amount of cash kept on hand to pay for minor expenses, such as office supplies or reimbursements. A petty cash fund will undergo periodic reconciliations, with transactions also recorded on the financial statements.

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Re-Attempt Weekly Quiz Competition

Recording and Posting of Cash Transactions Test 1

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Recording and Posting of Cash Transactions Test 1

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SHARING IS CARING

Question 1

Of the whole year

Of the accounting period

Of half year

All of the above

Question 2

Accrual basis

Cash basis

Hybrid basis

Single entry system basis

Question 3

An asset

A liability

An income

An expenditure

Solution

Question 4

An asset

A liability

An expense

Contingent liability

Solution

Question 5

Cash column of the cash book

Bank column of the cash book

Both the cash and bank columns of the book

The credit balance as per pass book

Solution

Question 6

Two Column Cash Book

Cash Book

Petty Cash Book

Purchase Book

Solution

Question 7

Trade discount

Cash discount

Quantity discount

Seasonal discount

Solution

Question 8

Net income for the Period

Net loss for the Period

Net worth of the Business

Net cash on Hand

Solution

Question 9

All cash payments

All cash receipts

All cash receipts and payments

Only credit payments

Solution

Question 10

The expenses relating to postage and conveyance

Salaries and wages to the final staff

For the purchase of furniture and fittings

Other recurring expenses

Solution

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