Cash Book Practice

A cash book is used to

• compute the profit or loss of a business

• record receipts and payment of cash and cheque

• record only receipts of cash

• record only payments of cash

D. Adams would debit his cash book when he

• Sold goods for cash

• Paid cash to office cleaner

• Bought goods for cash

• Paid installment on loan

Cash sales of $500 would be entered under which column of the cash book

• Bank column of the cash book

• Cash column of the cash book

• Both cash and bank column

• none of the above

Which of the following documents are NOT used to record entries in the cash book?

• Cheques

• Invoices

• Payments

• Receipts

Paid telephone expenses of $35 by cheque would be entered on which side and column of the cash book

• Payment side under the bank column

• Payment side under the cash column

• Receipt side under the bank column

• Receipt side under the cash column

A cheque is an order to a banker to

• Withdraw a sum of money from an bank account

• Prepare a bank statement for a business at once

• Deposit a sum of money in the business bank account

• Pay money to someone on demand

Which of the following is true? The Cash book

• Is an extension of the ledger

• Always has two columns

• Records receipts and payments of cash and cheques

• Has a debit and a credit side

Which of the following transactions will NOT affect the cash book

• Cash paid to a creditor for goods purchased from him

• Check received from Mr. Robert and deposited into bank

• Depreciation expense recorded for the year

• Telephone charges paid using online company's bank account

A cash book used to record day to day minor expenses is known as:

• General cash book

• Petty Cash book

• Additional cash book

• Extra cash book

A credit balance in the Cash Book indicates that

• There is a balance in the bank

• Too much cash us paid out of the office

• The bank balance is overdrawn

• Too much discounts were allowed.