Home » Quizzes » Cash book » Multiple choice questions (MCQs) quiz Cash book Multiple choice questions (MCQs) quiz Posted in: Cash book (quizzes) By: Rashid Javed | Updated on: August 25th, 2024 /25 ABOUT THIS QUIZChapter: Cash bookQuiz type: Multiple choice questions (MCQs) quizNumber of questions: 25Estimated time required: 12 - 15 minutesPassing score: 60%Your result will be displayed at the end of the quiz. 1. A cash book is used to: compute the profit or loss of a business record receipts and payments of cash record only receipts of cash record only payments of cash 2. Which of the following cannot be treated as cash? Coins Money orders Checks Special investments 3. A cash book works as: a book of original entry a ledger account a book of original entry as well as a ledger account none of the above 4. Which of the following statements is a correct statement? Cash is a current asset which is readily available to meet current obligations of a business Cash is universally accepted as a mode of payment The business activities involve a regular inflow and outflow of cash All of the above statements are correct 5. Which of the following cash books is the most identical to a traditional cash account? Single column cash book Double column cash book Three column cash book Petty cash book 6. The credit side of a cash book is also known as: the receipt side the profit side the payment side the loss side 7. If we add a bank column to both sides of a single column cash book, it becomes a: double column cash book triple column cash book petty cash book none of the above 8. Which of the following columns of a three column cash book is not balanced? Cash column Bank column Discount column All of the above columns are balanced 9. A contra entry is an entry that involves: a cash account as well as a sales account a bank account as well as a discount account a cash account as well as a bank account a cash account as well as a discount account 10. A contra entry is always: recorded on debit side of cash book recorded on credit side of cash book recorded on both debit and credit sides of cash book not recorded in cash book 11. Which one of the following transactions will not affect the cash book? Cash paid to a creditor for goods purchased from him Check received from Mr. Robert and deposited into bank Depreciation expense recorded for the year Telephone charges paid using online company's bank account 12. Which one of the following transactions will be recorded as contra entry? Cash deposited into company's bank account A previously received check deposited into company's bank account Cash withdrawn from bank for office use All of the above 13. Maha Trading Company receives a check amounting to $25,000 from Mr. John on March 20 and deposits the same into bank on March 22. How would these transactions affect the company’s cash book? On march 20, $25,000 would be recorded only in the bank column on the debit side of the cash book. No entry would be made on March 22. On March 20, $25,000 would be recorded only in the cash column on the debit side of the cash book. No entry would be made on March 22. No entry would be made on March 20. On march 22, $25,000 would be recorded only in the bank column on the debit side of the cash book. On March 20, $25,000 would be recorded only in the cash column on the debit side of the cash book. On march 22, a contra entry of $25,000 would be made. 14. A cash book used to record day to day minor expenses is known as: general cash book petty cash book additional cash book extra cash book 15. A person who is responsible for recording transactions in patty cash book is known as: general cashier additional cashier petty cashier counter cashier 16. Which of the following is not a contra entry? $5,000 deposited into bank $2,000 withdrew from bank for business purpose $1,000 withdrew from bank for personal use A check is deposited into bank on a date subsequent to its receipt 17. The debit side of a cash book is also known as: income side expense side payments side receipts side 18. Which of the following is not posted to ledger? Opening and closing balances of cash book Total of discount column on debit side Total of discount column on credit side All of the above are posted to ledger 19. A contra entry is: posted to bank account in the ledger posted to cash account in the ledger retained earnings account in the ledger is not posted to any account in the ledger Explanation:A contra entry completes the double entry within the cash book. Therefore, it is not posted to any account in the ledger. Moreover, when a cash book is maintained, the cash and bank accounts are not opened in the ledger. 20. The amounts written in the discount column on the debit side of the cash book represent: cash discount allowed or discount expense cash discount received or discount income trade discount allowed or discount expense trade discount received or discount income 21. The total of discount column on the debit side of cash book is posted to the: debit side of discount received account in the ledger credit side of discount received account in the ledger debit side of discount allowed account in the ledger credit side of discount allowed account in the ledger 22. The total of discount column on the credit side of cash book is posted to the: debit side of discount allowed account in the ledger credit side of discount allowed account in the ledger debit side of discount received account in the ledger credit side of discount received account in the ledger 23. A & Co. received a crossed check amounting to $5,000 from B & Co. The A & Co. deposited the check into bank on the same date on which it was received. The amount of the check would be written: in the bank column on the debit side of the cash book in the cash column on the debit side of the cash book in the bank column on the credit side of the cash book in the cash column on the debit side of the cash book 24. X Traders maintains a double column cash book. It received a check amounting to $1,000 from Y Traders. The check was not deposited into bank account on the same date on which it was received. The amount of the check would be written: in the bank column on the debit side of the cash book in the bank column on the credit side of the cash book in the cash column on the debit side of the cash book in the cash column on the credit side of the cash book 25. A firm that properly maintains a cash book does not need to maintain: a cash account in the ledger a cash receipt journal a cash payment journal all of the above 0% Restart quiz Next » Help us grow by sharing our content ♡
Isaac Smith December 21, 2022 Thanks sir, I have learned something from you. May God richly bless you. Reply
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Thanks sir, I have learned something from you. May God richly bless you.
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