Cash Book MCQS – Multiple Choice Questions

1.Cash book is a book of:

Original entry

Specialized journal

Income & expenditure

2.Cash book has column of petty cash and bank:

Yes

No

3.Cash book also records entries for accrual expenses?

Yes

No

4.Closing balance of cash book is recorded in:

Profit & loss account

Statement of changes in equity

Balance sheet

5.Prepaid insurance paid $2,000 is recorded on which side of cash book?

Credit

Debit

Not to be recorded

6.Cash book is used to record:

Receipts & payments

Receipts

Payments

None of them

7.Who is responsible to make cash book?

Project Manager

Accountant

Auditor

No one

8.Owner of the business invested $100,000 into the business, how you will record this in cash book?

Debit cash book

Credit cash book

No effect on cash book

9.When an entry affects the cash book on both side, it is called:

Compound journal entry

Contra entry

Single entry

Original entry

10.Credit balance in the cash book implies:

Cash at Bank

Overdraft

Bank balance

Letter of credit

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