Cash book

Multiple choice questions quiz

Your answer is incorrect. The correct answer is “record receipts and payments of cash” (option 2).

Your answer is incorrect. The correct answer is “special investments” (option 4).

Your answer is incorrect. The correct answer is “a book of original entry as well as a ledger account” (option 3).

Your answer is incorrect. The correct answer is “all of the above statements are correct” (option 4).

Your answer is incorrect. The correct answer is “single column cash book” (option 1).

Your answer is incorrect. The correct answer is “payment side” (option 3).

Your answer is incorrect. The correct answer is “double column cash book” (option 1).

Your answer is incorrect. The correct answer is “discount column” (option 3).

Your answer is incorrect. The correct answer is “a cash account as well as a bank account” (option 3).

Your answer is incorrect. The correct answer is “recorded on both debit and credit sides of cash book” (option 3).

Your answer is incorrect. The correct answer is “depreciation expense recorded for the year” (option 3).

Your answer is incorrect. The correct answer is “all of the above” (option 4).

Your answer is incorrect. The correct answer is “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.” (option 4).

Your answer is incorrect. The correct answer is “petty cash book” (option 2).

Your answer is incorrect. The correct answer is “petty cashier” (option 3).

Your answer is incorrect. The correct answer is “$1,000 withdrew from bank for personal use” (option 3).

Your answer is incorrect. The correct answer is “receipts side” (option 4).

Your answer is incorrect. The correct answer is “opening and closing balances of cash book” (option 1).

Your answer is incorrect. The correct answer is “is not posted to any account in the ledger” (option 4).

Explanation:

A contra entry completes the double entry within the cash book and is therefore 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.

Your answer is incorrect. The correct answer is “cash discount allowed or discount expense” (option 1).

Your answer is incorrect. The correct answer is “debit side of discount allowed account in the ledger” (option 3).

Your answer is incorrect. The correct answer is “credit side of discount received account in the ledger” (option 4).

Your answer is incorrect. The correct answer is “in the bank column on the debit side of the cash book” (option 1).

Your answer is incorrect. The correct answer is “in the cash column on the debit side of the cash book” (option 3).

Your answer is incorrect. The correct answer is “all of the above” (option 4).