Recording and Posting of Cash Transactions Test 11

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Recording and Posting of Cash Transactions Test 11

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Weekly Quiz Competition

Question 1
1 / -0

Cash purchases are recorded in ______________.

A
Purchases Book

B
Cash Book

C
Purchases Returns Book

D
Partly in Cash Book and partly in Journal Proper

Solution

Cash purchase involves payment of cash therefore, it will be recorded in the cash book.
Question 2
1 / -0

Single Column Cash Book may show ______________.

A
only a debit balance

B
only a credit balance

C
either debit balance or a credit balance

D
neither debit nor credit balance.

Solution

Its shows only debit balance as a business can spend more than it it have. Therefore, there cannot be a negetive cash.
Question 3
1 / -0

Balance in a petty cash book is _______.

A
an expense

B
a profit

C
an asset

D
None of these

Solution

Closing balance of a petty cash book is the cash left with the petty cashier at the end of a month. Cash is an asset for an organisation. Hence, balance of cash in the petty cash book is an asset.
Therefore, C is the correct answer.
Question 4
1 / -0

The total of the amount of the bills receivable book is posted to the ______ in the ledger.

A
Dr. of bills payable account

B
Cr. of bills payable account

C
Dr. of bills receivable account

D
None of these.

Solution

The total of the amount of the bills receivable book is posted to the debit side in the ledger because Bills receivable account will usually have a debit balance. As a bill receivable is supposed to be received at maturity, it acts as a current asset for the business.
Therefore, C is the correct option.
Question 5
1 / -0

When a cheque received is endorsed, it must be entered on _____________.

A
Credit side of the cash book only

B
Debit side of the cash book only

C
Both sides of the cash book

D
No where

Solution

A bearer cheque received from a party and not deposited in the bank, can be given to any third party for making the similar payment to the latter. This is known as endorsement. On endorsement of cheque to the third party the cash column must be reduced so that it gets recorded in the cash column on the credit side of the cash book. It should be noted that when the cheque was received, it must have been recorded in the cash column on the debit (receipt) side of the cash book.
Question 6
1 / -0

Fixed assets are __________________.

A
Kept in the business for use over a long time of earning income

B
Meant for resale

C
Meant for conversion into cash as quickly as possible

D
All of the above

Solution

A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets most commonly appear on the balance sheet as property, plant, and equipment (PP&E).
Question 7
1 / -0

Bank column of the Cash Book has __________ balance.

A
Debit

B
Credit

C
Either (a) or (b)

D
Neither (a) nor (b)

Solution

The double column cash book (also known as two column cash book) has two money columns on both debit and credit sides – one to record cash transactions and one to record bank transactions.
Question 8
1 / -0

Cash account will show ______________.

A
Debit or Credit balance

B
A Credit balance

C
A Debit balance

D
None of the above

Solution

Cash account will show a debit balance.
Cash Book is a subsidiary book which records all the cash receipts and cash payments. The Balance of Cash book can never be credit as it always has debit balance or zero balance.
Question 9
1 / -0

The petty cashier generally works on _______ system.

A
Balancing

B
Accrual

C
Matching

D
Imprest
Question 10
1 / -0

A contra entry in the Cash Book means that:________.

A
Debit must be in the Bank Account and the credit in the Cash Account

B
Debit and credit entries are in any folio but in the Cash Book

C
Debit and credit entries are on the same folio of the Cash Book

D
Debit must be in the Cash Account and the credit in the Bank Account

Solution

Contra entry can be:
1.Bank A/c Dr...
To Cash A/c
or
2.Cash A/c Dr...
To Bank A/c
Credit and Debit entries are both taken into consideration into the cash book and not necessarily only bank or only cash entries are reflected.

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Re-Attempt Weekly Quiz Competition

Recording and Posting of Cash Transactions Test 11

Result

Recording and Posting of Cash Transactions Test 11

Score

-

Rank

-

SHARING IS CARING

Question 1

Purchases Book

Cash Book

Purchases Returns Book

Partly in Cash Book and partly in Journal Proper

Solution

Question 2

only a debit balance

only a credit balance

either debit balance or a credit balance

neither debit nor credit balance.

Solution

Question 3

an expense

a profit

an asset

None of these

Solution

Question 4

Dr. of bills payable account

Cr. of bills payable account

Dr. of bills receivable account

None of these.

Solution

Question 5

Credit side of the cash book only

Debit side of the cash book only

Both sides of the cash book

No where

Solution

Question 6

Kept in the business for use over a long time of earning income

Meant for resale

Meant for conversion into cash as quickly as possible

All of the above

Solution

Question 7

Debit

Credit

Either (a) or (b)

Neither (a) nor (b)

Solution

Question 8

Debit or Credit balance

A Credit balance

A Debit balance

None of the above

Solution

Question 9

Balancing

Accrual

Matching

Imprest

Question 10

Debit must be in the Bank Account and the credit in the Cash Account

Debit and credit entries are in any folio but in the Cash Book

Debit and credit entries are on the same folio of the Cash Book

Debit must be in the Cash Account and the credit in the Bank Account

Solution

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