Worksheetsaccountancy quiz
Total questions: 10
Worksheet time: 4mins
In which book are cash transactions recorded immediately?
Ledger
Journal
Cash Book
Trial Balance
What is the purpose of a journal entry in accounting?
To record financial statements
To record business transactions
To calculate taxes
To prepare budgets
What information is recorded in the third column of three column cash book?
Cash payments
Cash receipts
Discounts allowed
Discounts received
According to the double-entry accounting principle, every transaction affects at least how many accounts?
one
two
three
four
What is the primary advantage of using a three-column cash book over a single-column cash book? a. Simplicity b. Better analysis of cash transactions c. Requirement by law d. Faster recording of transactions
Simplicity
better analysis of cash transactions
Requirement by law
faster recording of transactions
A cashbook serves the following purpose:
It works as a ledger account
it works as a book of original entry as well as a ledger account
It works as a book of original entry
None of the above
The journal proper is used for recording:
Routine business transactions
Only cash transactions
non-routine or special transactions
Only sales transactions
In a cashbook, a contra entry involves __________:
A cash account and a bank account
A cash account and a sales account
A cash account and a discount account
A bank account and a discount account
The total of the discount column on the debit side of a cashbook is posted to the:
Debit side of the discount allowed account in the ledger
Credit side of the discount allowed account in the ledger
Debit side of the discount received account in the ledger
Credit side of the discount received account in the ledger
When an error is discovered in the cash book, what is the correct sequence of steps for correction?
Identify error, journal entry, ledger adjustment
identify error, ledger adjustment, journal entry
Journal entry, identify error, ledger adjustment
Ledger adjustment, identify error, journal entry
