MCQs 1 To 10 Cash MCQ 1. When goods are purchased for cash, the entry will be recorded in the?

(a) Cash book

(b) Purchases book

(c) Journal

(d) None

2. The balance of petty cash is?

(a) An asset (b) A liability

(c) An expense

(d) An income

3. All of the following are not considered cash except?

(a) Postage and stamps

(b) Securities

(c) Investments

(d) Cheque

4. Entry representing the reversal or cancellation of an entry on the other side is called?

(a) Closing entry

(b) Contra entry

(c) Bank overdraft

(d) Adjusting entry

5. The debit side discount column of three column cash book is called?

(a) Trade discount

(b) Cash discount

(c) Discount allowed

(d) Discount received

6. The total of the Discounts Allowed column in the Cash Book is posted to?

(a) The debit of the Discounts Received account

(b) The debit of the Discounts Allowed account

(c) The credit of the Discounts Allowed account

(d) The credit of the Discounts Received account

7. Cash discount is provided?

(a) Early payment

(b) Late payment

(c) Bulk purchase

(d) Bulk sales

8. Which of the following explains the imprest system of operating petty cash?

(a) Weekly expenses cannot exceed a set amount

(b)The exact amount of expenses is reimbursed at intervals to maintain a fixed float

(c) All expenses out of the petty cash must be properly authorized

(d) Regular equal amounts of cash are transferred into petty cash at intervals

9. Which of the following payment is made from petty cash?

(a) Purchase of non-current asset

(b) Payment to creditors

(c) Cash deposited into bank

(d) Payment of postage & telegrams

10. Which of the following transactions does not decrease cash?

(a) Purchasing inventory for cash

(b) Accruing operating expenses

(c) Paying trade accounts payable

(d) Purchasing securities that are not cash equivalents MCQs

11 To 20 11. The cash book called?

(a ) Dual Book

(b) Journalized ledger

(c) Book of prime and secondary entry

(d) All of before

12. The Debit balance of cash book indicates?

(a) Net income

(b) Cash in hand

(c) Difference between debtors and creditors

(d) None

13. In triple column cash book, cash withdrawn from bank for office use will appear in?

(a) Both sides of the cash book

(b) Debit side of the cash book only

(c) Credit side of the cash book only

(d) All of above

14. If a cheque sent for collection is dishonored, the debit is given to?

(a) Suppliers A/c

(b) Bank A/c

(c) Customers A/c

(d) All of above

15. Petty cash may be used to pay?

(a) Salaries to staff

(b) Expenses relating to post and telegrams

(c) Purchase of furniture and fittings

(d) All of Above

16. The discount column of a triple column cash book records?

(a) Trade discount

(b) Cash discount

(c) Quality discount

(d) Seasonal discount

17. In which books of prime entry would the following transactions be entered? A credit sale for Rs. 387 and a cash sale of Rs. 200 less 10% discount for cash payment

(a) Sales day book and cash book

(b) The petty cash book and sales day book

(c) The purchase day book and sales day book

(d) The journal and cash book

18. On Jan 1st 2002, Rs. 1,000 given to petty cashier, he has spent Rs.860 during the month of January. On Feb 1st to make the imprest he will receive cheque for Rs.______________?

(a) Rs. 1,000

(b) Rs. 860

(c) Rs. 1,860

(d) None

19. When cash is drawn from bank for business use the entry type will be?

(a) Contra entry

(b) Compound entry

(c) General entry

(d) Double entry

20. All of the following are other receivables except?

(a) Income taxes refundable

(b) Accrued revenue

(c) Petty cash

(d) Advances to employees MCQs 1 To 10 Cash MCQ