Drawings by owner of business are generally recorded on which of the following side of a cash book?
Correct answer B. Payments
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Accounting MCQs
Page 19 of Accounting multiple-choice questions with answers. Tap an option to check yourself.
Page 19 of 20
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
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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
The most common imprest system is the ____ system?
Correct answer A. Petty cash
A cash deposit made by business appears on the bank statement as ____ balance?
Correct answer B. Credit
A check returned by bank marked “NSF” means that:
Correct answer B. There are not sufficient funds in your account
Bank reconciliation statement is prepared by?
Correct answer A. Accountant of the business
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Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?
Correct answer C. Bank charges will be credited in cash book
Favorable balance of cash book implies that
Correct answer B. Debit balance of cash book
Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the ____ (prepared by business).
Correct answer C. Cash book
In the Bank reconciliation statement “Deposit in transit” is usually:
Correct answer B. Added to bank balance
Unpresented checks also referred as?
Correct answer C. Outstanding checks
A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash book?
Correct answer B. $2000 will be credited in cash book
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Standing orders are
Correct answer A. Credited in the cash book
Uncollected checks also referred as?
Correct answer B. Uncredited checks
____ are checks that are issued by the business but not yet presented to bank
Correct answer C. Outstanding checks
Bank sent debit advice of $500 to company being interest on overdraft. It wasn’t entered in cash book. Identify the correct adjustment in cash book.
Correct answer B. $500 will be credited
In bank reconciliation statement the amount of outstanding checks is added to ____ balance of cash book.
Correct answer A. Adjusted