IGCSE Accounting Cash Book (Basics)

What is the purpose of a cash book in accounting?

• To record all cash transactions

• To record employee salaries

• To calculate total assets

• To track inventory levels

What are the two sides of a cash book?

• Left side and right side

• Debit side and credit side

• Positive side and negative side

• Income side and expense side

A business sells to its customer, Anne on credit. What is the double-entry for this transaction ?

• DR. Bank

  CR. Sales

• DR. Trade Receivable - Anne

  CR. Sales

• DR. Sales

  CR. Trade Receivable - Anne

• DR. Purchases

  CR. Trade Payable - Anne

A business sells to its customer on credit. Which 2 specialist ledgers should we record in ?

• DR. Purchases ledger
  CR. Cash book

• DR. Nominal ledger
  CR. Sales ledger

• DR. Sales ledger
  CR. Nominal ledger

• DR. Cash book

  CR. Sales ledger

What is the importance of maintaining an accurate cash book in accounting?

• It has no importance in accounting

• It is only used for tax purposes

• It only records non-cash transactions

• It helps in tracking all cash transactions, ensuring proper record-keeping, and providing a clear picture of the financial position of the business.