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Petty Cash Management Quiz

Total questions: 39

Worksheet time: 20mins

Name
Class
Date
1.

The document showing how petty cash was spent is submitted to request:

a)

Salary

b)

Allowance

c)

Reimbursement

d)

Tax relief

2.

The analysis column labeled “Stationery” will typically include which of the following?

a)

Office pens

b)

Factory tools

c)

Fuel

d)

Repairs

3.

What is the term used when a petty cashier returns a record of expenses for review?

a)

Retirement of imprest

b)

Reconciliation

c)

Loan adjustment

d)

Balancing

4.

The imprest system of petty cash ensures that:

a)

Cash is increased monthly

b)

Expenses are eliminated

c)

Petty cash is fixed and replaced after use

d)

Accounts are frozen after each month

5.

What is the primary reason for keeping a separate petty cash book?

a)

To duplicate records

b)

To increase accounting workload

c)

To reduce entries in the main cash book

d)

To confuse petty staff

6.

How frequently is a petty cash book usually balanced?

a)

Once a year

b)

Weekly or monthly

c)

Daily

d)

It is never balanced

7.

Petty cash is best used for:

a)

Buying land

b)

Long-term projects

c)

Major investments

d)

Minor expenses like postage and transport

8.

Which of the following is not considered part of the petty cash expenditure process?

a)

Buying stamps

b)

Recording refreshments

c)

Paying rent

d)

Buying envelopes

9.

Who typically authorizes the payment of petty cash expenses in an imprest system?

a)

Petty cashier

b)

Main cashier

c)

Auditor

d)

Manager

10.

Spending petty cash on various minor purchases is referred to as:

a)

Adjustment

b)

Imprest issue

c)

Revaluation

d)

Retirement of imprest

11.

What kind of account is the petty cash book classified as?

a)

Ledger

b)

Final account

c)

Journal

d)

Trial balance

12.

What section of the petty cash book holds a short note explaining why the money was spent?

a)

Imprest column

b)

Amount column

c)

Details column

d)

Cash balance

13.

What happens when the petty cashier requests reimbursement?

a)

The imprest is decreased

b)

Petty cash is withdrawn

c)

Petty cash is topped up

d)

Income is declared

14.

The side of the petty cash book where received funds from the main cashier are recorded is the:

a)

Credit side

b)

Debit side

c)

Analysis column

d)

Journal entry

15.

If the set imprest is $100 and the petty cashier spends $65, what should be reimbursed?

a)

$100

b)

$65

c)

$35

d)

$165

16.

Which of the following would not usually appear in a petty cash analysis column?

a)

Refreshments

b)

Insurance

c)

Transport

d)

Postage

17.

Which entry shows that a petty cashier has received money for small office expenses?

a)

Credit purchase

b)

Revenue from sales

c)

Cash from main cashier

d)

Profit from investment

18.

What type of document is mainly required to start recording entries in a petty cash book?

a)

Bank statement

b)

Petty cash vouchers

c)

Sales journal

d)

Credit note

19.

The column that shows the full cost of a petty expense before it’s split into categories is called:

a)

Debit column

b)

Analysis column

c)

Total amount column

d)

Details column

20.

The imprest amount is recorded in the petty cash book as a:

a)

Loan

b)

Payment

c)

Receipt

d)

Expense

21.

What principle justifies keeping a petty cash book for small expenditures?

a)

Matching principle

b)

Entity concept

c)

Going concern

d)

Principle of materiality

22.

The role responsible for managing day-to-day petty cash entries is the:

a)

Chief accountant

b)

Treasurer

c)

Auditor

d)

Petty cashier

23.

What is the term for maintaining a fixed amount of petty cash by topping it up after use?

a)

Imprest system

b)

Flexible budgeting

c)

Cash control

d)

Expenditure scheme

24.

When a petty cash transaction is supported by a paper slip or form, it is known as a:

a)

Receipt

b)

Invoice

c)

Voucher

d)

Guarantee

25.

What does the voucher number in a petty cash book indicate?

a)

The price of the item

b)

A reference to the source document

c)

Amount paid

d)

List of items needed

26.

The first thing to record when starting a petty cash book is:

a)

Payment entries

b)

Expense totals

c)

Imprest received

d)

Reimbursements

27.

Which of these is an example of an expense typically recorded in the petty cash book?

a)

Machinery purchase

b)

Rent payment

c)

Stationery

d)

Salaries

28.

Why is it important to check petty cash balances regularly?

a)

To increase cash supply

b)

To maintain tax records

c)

To avoid errors and ensure accuracy

d)

To reduce profits

29.

The purpose of a petty cash book is mainly to record:

a)

Sales and purchases

b)

Minor everyday business expenses

c)

Credit transactions

d)

Investment activities

30.

In the imprest system, when the original amount is spent and replaced, the process is called:

a)

Withdrawal

b)

Income distribution

c)

Reimbursement

d)

Disposal

31.

What is the main purpose of a cash book in business?

a)

Recording goods in stock

b)

Recording cash receipts and payments

c)

Recording employee attendance

d)

Preparing tax reports

32.

Which of the following are types of cash books used in business?

a)

General and private

b)

Single and double entry

c)

Single column and three column

d)

Ledger and journal

33.

In a cash book, which column is used to record funds held in the bank?

a)

Cash column

b)

Expense column

c)

Bank column

d)

Credit column

34.

What is a contra entry in the cash book?

a)

An incorrect entry

b)

A transfer between cash and bank columns

c)

A discount transaction

d)

An overpayment

35.

What name is given to the discount offered for quick payment by a buyer?

a)

Trade discount

b)

Prompt payment reward

c)

Bulk discount

d)

Cash discount

36.

What is the job of a proofreader?

a)

Drawing business logos

b)

Designing book covers

c)

Correcting errors in written text

d)

Creating advertisements

37.

Why are alphabetic sentence drills practiced during typing lessons?

a)

To learn spelling

b)

To improve typing speed and accuracy

c)

To test grammar

d)

To learn sentence writing

38.

When proofreading, what does the term “stet” mean?

a)

Remove the word

b)

Move the text up

c)

Ignore the correction (let it stand)

d)

Add punctuation

39.

What is a brief typing activity lasting 5 to 10 minutes called?

a)

Speed test

b)

Typing tutorial

c)

Copy typing

d)

Timing drill