Petty Cash Book Quiz

What is a petty cash book used for?

• Recording large capital expenditures

• Recording bank transactions

• Recording small day-to-day expenses

• Preparing income statements

Which of the following is NOT typically recorded in a petty cash book?

• Stationery expenses

• Salaries

• Bus fare

• Postage

What does the "petty" in petty cash book mean?

• Temporary

• Minor

• Monthly

• Unimportant

In a columnar petty cash book, expenses are recorded:

• Only in the total column

• In the journal

• In their respective expense columns

• In the bank column

The petty cash book is usually maintained by:

• Chief Accountant

• Manager

• Petty Cashier

• Auditor

What is the purpose of the imprest system?

• To record sales

• To minimize audit risks

• To maintain a fixed amount of cash for petty expenses

• To calculate profit

Under the imprest system, the petty cash is reimbursed:

• Monthly

• Whenever it is completely spent

• To bring it back to the original imprest level

• Once a year

The total of all expense columns in a petty cash book should equal:

• Bank balance

• Income from sales

• The total payments made

• Profit

Which of the following is typically an expense column in a petty cash book?

• Capital

• Salaries

• Travelling

• Revenue

What is a voucher number used for in a petty cash book?

• Calculating totals

• Approving large purchases

• Cross-referencing supporting documents

• Recording inventory