Which of the following statements is true?
Correct answer D. The Cash Book is a subsidiary book as well as a ledger.
Topic / 21 questions
Cash Book MCQs
Cash Book MCQs cover the book used to record all cash and bank receipts and payments, including column types, discounts and petty cash. They help commerce students and banking job applicants revise bookkeeping basics, and every question shows its correct answer as soon as you select an option.
An entry which is made on both sides of a cash book is called?
Correct answer B. Contra entry
A cash book records:
Correct answer C. Both cash receipts and cash payments
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Cash book is prepared by?
Correct answer B. Accountant of business
Discount received is recorded on which of the following side of a cash book?
Correct answer B. Payments
The closing balance of petty cash book is considered as?
Correct answer B. Asset
A credit balance in cash book indicates?
Correct answer C. Bank overdraft
Petty cash fund is supposed to be replenished?
Correct answer D. At the end of every accounting period
Postdated checks are considered as?
Correct answer C. Accounts receivable
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Which of the following is generally not the party to a check?
Correct answer D. Seller
Cash book with cash and discount column is mostly referred as?
Correct answer B. Two column cash book
A simple or one column cash book usually has which of the following main columns?
Correct answer D. Cash
Purchase of office equipment for cash will be recorded on which of the following sides of a cash book?
Correct answer B. Payments
Postage stamps on hand are considered as?
Correct answer B. Prepaid expenses
A cash book that is used to record the small payments of cash is generally referred as?
Correct answer D. Petty cash book
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Drawings by owner of business are generally recorded on which of the following side of a cash book?
Correct answer B. Payments
Payment of rent expenses is recorded on which side of cash book?
Correct answer B. Payments
Cash discount is allowed on ____ repayment of debt.
Correct answer B. Prompt
Introduction capital by owner of business is recorded on which side of a cash book?
Correct answer A. Receipts
A cash book with cash, bank and discount column is commonly referred as?
Correct answer C. Three columns cash book
About Cash Book MCQs
This topic explains how a business records cash movements. Questions cover which side of the cash book shows receipts, such as capital introduced by the owner on the debit side, and how discount received appears on the credit side in the discount column. You will meet the single, double and triple column cash book, the last having cash, bank and discount columns, and the petty cash book used for small payments, often kept under the imprest system. Items also ask who prepares the cash book and how items like postage stamps on hand are treated. These questions appear in banking and accounts tests.
Exams that include Cash Book MCQs
Pakistan
- PPSC
- FPSC
- NTS
- Banking job tests
India
- SSC CGL
- IBPS Clerk
- SBI PO
Bangladesh
- Bank job exams
- Bangladesh Bank recruitment
- Government job tests
Frequently asked questions
What is a triple column cash book?
A triple column cash book has three money columns on each side: cash, bank and discount. It records cash and bank transactions together with discounts allowed on the debit side and discounts received on the credit side. It reduces the need for a separate bank account in the ledger.
What is a petty cash book?
A petty cash book records small, routine payments such as postage, stationery and travel. It is usually kept by a petty cashier under the imprest system, where a fixed amount is given at the start of a period and the amount spent is reimbursed at the end, restoring the original balance. This keeps the main cash book free of minor entries.
How many Cash Book MCQs are on MCQs360?
There are 21 Cash Book MCQs in the Accounting section of MCQs360. They are free to practise with no sign-up, and each shows its correct answer instantly, so you can check recording rules quickly and spot where you went wrong.
Last reviewed October 2026