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The Cash Book

Quiz by Guerline Joseph

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10 questions
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  • Q1
    Which source document(s) is recorded in the cash book?
    receipts and payments
    debit note
    credit note
  • Q2
    Which of the following statement is true?
    The cash book is both a journal and a ledger
    The cash book records small payments
    The cash book records cash transactions
    It records cash and credit transactions
  • Q3
    Which of the following is recorded on the debit side of the cash book?
    Discount allowed
    Discount received
    Bank payments
    Cash payments
  • Q4
    What is another term used for the folio column within a cash book?
    Discount allowed
    Post ref
    Discount received
  • Q5
    This encourages the customer to purchase goods in bulks.
    Cash discount
    Debit note
    Trade discount
    Credit note
  • Q6
    If the customer is given a discount this is recorded under the _________ account.
    discount received
    discount allowed
  • Q7
    The total of the discount received is recorded on the _________ side of the general ledger.
  • Q8
    The Cash Book, BANK COLUMNS, shows $5,125 debit and $5,950 credit. How should the balance of the Bank account be described?
    $825 available balance
    $825 undersubscribed
    $825 overdrawn
    $825 on account
  • Q9
    In which of the following books of original entry are cash discounts recorded?
    Two-Column Cash Book
    Petty Cash Book
    Three-Column cash book
  • Q10

    A purchase discount is recorded in a general ledger account called

    discount received 

    discount allowed


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