Online Test — Cash Book
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
The cash book is:
Only a journal
Only a ledger
Both a journal and a ledger
A source document
Explanation: It is both a journal and a ledger (the cash account itself).
Question 2 of 15
Receipts are recorded on the ____ side of the cash book.
Credit
Debit
Either
Bank only
Explanation: Receipts → debit side; payments → credit side.
Question 3 of 15
The cash book can never show a:
Debit balance
Credit balance
Nil balance
Opening balance
Explanation: You cannot pay out more cash than you hold.
Question 4 of 15
A single column cash book records only:
Bank transactions
Cash transactions
Discount
Credit sales
Explanation: It has one column for cash only.
Question 5 of 15
A double column cash book commonly has columns for cash and:
Stock
Bank
Capital
Sales
Explanation: Cash and bank columns.
Question 6 of 15
A triple column cash book has columns for:
Cash, bank and capital
Discount, cash and bank
Sales, purchases and cash
Cash, stock and bank
Explanation: Discount, cash and bank columns.
Question 7 of 15
Discount allowed appears in the discount column on the ____ side.
Credit
Debit
Bank
Neither
Explanation: Discount allowed (an expense) is on the debit side.
Question 8 of 15
Discount received appears on the ____ side.
Debit
Credit
Cash
Neither
Explanation: Discount received (a gain) is on the credit side.
Question 9 of 15
The discount columns of a cash book are:
Balanced
Only totalled
Ignored
Carried down
Explanation: They are totalled and posted, not balanced.
Question 10 of 15
Cash deposited into the bank is an example of a:
Contra entry
Credit sale
Opening entry
Closing entry
Explanation: Money between cash and bank of the same firm is a contra entry.
Question 11 of 15
A contra entry is marked with the letter:
B
C
P
T
Explanation: Contra entries are marked 'C'.
Question 12 of 15
A contra entry needs ____ posting to the ledger.
Double
No further
Triple
Reverse
Explanation: Both sides are inside the cash book, so no further posting.
Question 13 of 15
Small day-to-day expenses are recorded in the:
Journal proper
Petty cash book
Sales book
Ledger
Explanation: The petty cash book records small expenses.
Question 14 of 15
Under the imprest system, the petty cashier is reimbursed:
A fixed amount regardless of spending
Exactly the amount spent
Nothing
Double the imprest
Explanation: Reimbursement equals the amount spent, restoring the imprest.
Question 15 of 15
The petty cash book usually uses an ____ format.
Analytical (columnar)
Single line
Random
Reverse
Explanation: Analysis columns classify the small expenses.