How is the closing balance of the petty cash book treated?
Correct answer B. Asset
Topic / 36 questions
Cash Book MCQs
Page 2 of Cash Book multiple-choice questions with answers. Tap an option to check yourself.
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What does a credit balance in the bank column of a cash book show?
Correct answer D. Bank overdraft
When should a petty cash fund be replenished?
Correct answer C. At the end of every accounting period
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How are post-dated cheques received treated?
Correct answer D. Accounts receivable
Which of the following is not normally a party to a cheque?
Correct answer C. Seller
What is a cash book with columns for cash and discount usually called?
Correct answer B. Two column cash book
Which main column does a simple, single-column cash book usually have?
Correct answer A. Cash
On which side of a cash book is a cash purchase of office equipment entered?
Correct answer A. Payments
How are unused postage stamps held by a business treated?
Correct answer A. Prepaid expenses
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What is the cash book used to record small cash payments usually called?
Correct answer C. Petty cash book
On which side of the cash book are the owner’s drawings usually recorded?
Correct answer B. Payments
On which side of the cash book is the payment of rent recorded?
Correct answer C. Payments
Cash discount is allowed for what kind of repayment of a debt?
Correct answer A. Prompt
On which side of a cash book is capital introduced by the owner recorded?
Correct answer A. Receipts
What is a cash book with cash, bank and discount columns usually called?
Correct answer A. Three columns cash book
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Which is the most common example of an imprest system?
Correct answer C. Petty cash