Essential Book Keeping - Qp6

10 Questions | By Jacksonmatthews | Updated: Mar 20, 2022 | Attempts: 107

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Questions and Answers

1.

A petty cash book will be kept to record small cash transactions and so on, with analysis kept in the petty cash book of what the cash was spent on.
- A.
  
  True
- B.
  
  False
2.

Many businesses (particularly large businesses that use accounting software packages) will keep the cash book as an account within the general journal.
- A.
  
  True
- B.
  
  False
3.

On a periodic basis, the petty cash book transactions are summarised and transferred to the accounts.
- A.
  
  True
- B.
  
  False
4.

The ______ system is a simple system that can be used to ensure a business has enough petty cash on hand to meet its needs.
- A.
  
  Cash
- B.
  
  Imprest
- C.
  
  Petty cash
5.

When dealing with cash, it is important to properly reconcile the amounts involved.
- A.
  
  True
- B.
  
  False
6.

Cash flow is vitally important to all business and, as a result, most businesses are willing to offer a discount to customers for tardy payment.
- A.
  
  True
- B.
  
  False
7.

______ means that the company should look to the person who issued the cheque, in order to make amends to either the cheque itself.
- A.
  
  Refer to drawer
- B.
  
  No funds
- C.
  
  Please re-present
8.

______ are used by most people to pay household bills and so forth.
- A.
  
  Standing orders
- B.
  
  Direct debits
- C.
  
  Credit transfers
- D.
  
  BACS
- E.
  
  CHAPS
9.

To reconcile your bank statement, proceed as follows: (Select three)
- A.
  
  Check the balance off your current statement.
- B.
  
  Tick off the entries on the statement against the corresponding entries in your cash book to see if everything has cleared.
- C.
  
  Add debits paid in but not shown on the statement.
- D.
  
  Check regular payments like standing orders and direct debits.
- E.
  
  The balance should equal the differences between your ‘bank in’ and ‘bank out’ columns of your analysed cash book, adjusted for any brought forward amount.