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Which of the following is false regarding the cash book: A. All credit and cash transaction are recorded. B. Opening balance of cash is shown in Dr side of the cash book as ‘To Balance b/d’ C. Only transactions of cash receipt and payments are recorded D. This book cannot show a credit balance?
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Which of the following is false regarding the cash book: A. All credit...
False Statement: D. This book cannot show a credit balance.
Explanation:
The cash book is a financial record that is used to track all cash transactions of a business. It serves as a subsidiary book and is an essential part of the double-entry bookkeeping system. The cash book records all cash receipts and payments made by a business, providing a clear and systematic record of the company's cash flow.
A. All credit and cash transactions are recorded: True
- The cash book records both credit and cash transactions. It includes all cash receipts and payments made by the business, whether in the form of cash or through other means such as checks, debit cards, or electronic transfers.
B. Opening balance of cash is shown in Dr side of the cash book as ‘To Balance b/d’: True
- The opening balance of cash is shown on the debit side of the cash book as "To Balance b/d" (balance brought down). This represents the amount of cash available at the beginning of the accounting period.
C. Only transactions of cash receipt and payments are recorded: False
- This statement is false. The cash book does not only record transactions of cash receipt and payments but also includes transactions involving discounts, bank charges, interest earned or paid, and other cash-related items.
D. This book cannot show a credit balance: False
- This statement is false. The cash book can show a credit balance in certain situations. For example, if the business receives more cash than it pays out in a given period, there will be a surplus of cash resulting in a credit balance in the cash book.
In conclusion, statement D is false. The cash book can indeed show a credit balance, depending on the cash inflows and outflows of the business.
Explanation:
The cash book is a financial record that is used to track all cash transactions of a business. It serves as a subsidiary book and is an essential part of the double-entry bookkeeping system. The cash book records all cash receipts and payments made by a business, providing a clear and systematic record of the company's cash flow.
A. All credit and cash transactions are recorded: True
- The cash book records both credit and cash transactions. It includes all cash receipts and payments made by the business, whether in the form of cash or through other means such as checks, debit cards, or electronic transfers.
B. Opening balance of cash is shown in Dr side of the cash book as ‘To Balance b/d’: True
- The opening balance of cash is shown on the debit side of the cash book as "To Balance b/d" (balance brought down). This represents the amount of cash available at the beginning of the accounting period.
C. Only transactions of cash receipt and payments are recorded: False
- This statement is false. The cash book does not only record transactions of cash receipt and payments but also includes transactions involving discounts, bank charges, interest earned or paid, and other cash-related items.
D. This book cannot show a credit balance: False
- This statement is false. The cash book can show a credit balance in certain situations. For example, if the business receives more cash than it pays out in a given period, there will be a surplus of cash resulting in a credit balance in the cash book.
In conclusion, statement D is false. The cash book can indeed show a credit balance, depending on the cash inflows and outflows of the business.
Community Answer
Which of the following is false regarding the cash book: A. All credit...
Option.A
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Which of the following is false regarding the cash book: A. All credit and cash transaction are recorded. B. Opening balance of cash is shown in Dr side of the cash book as ‘To Balance b/d’ C. Only transactions of cash receipt and payments are recorded D. This book cannot show a credit balance?
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Which of the following is false regarding the cash book: A. All credit and cash transaction are recorded. B. Opening balance of cash is shown in Dr side of the cash book as ‘To Balance b/d’ C. Only transactions of cash receipt and payments are recorded D. This book cannot show a credit balance? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Which of the following is false regarding the cash book: A. All credit and cash transaction are recorded. B. Opening balance of cash is shown in Dr side of the cash book as ‘To Balance b/d’ C. Only transactions of cash receipt and payments are recorded D. This book cannot show a credit balance? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is false regarding the cash book: A. All credit and cash transaction are recorded. B. Opening balance of cash is shown in Dr side of the cash book as ‘To Balance b/d’ C. Only transactions of cash receipt and payments are recorded D. This book cannot show a credit balance?.
Which of the following is false regarding the cash book: A. All credit and cash transaction are recorded. B. Opening balance of cash is shown in Dr side of the cash book as ‘To Balance b/d’ C. Only transactions of cash receipt and payments are recorded D. This book cannot show a credit balance? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Which of the following is false regarding the cash book: A. All credit and cash transaction are recorded. B. Opening balance of cash is shown in Dr side of the cash book as ‘To Balance b/d’ C. Only transactions of cash receipt and payments are recorded D. This book cannot show a credit balance? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is false regarding the cash book: A. All credit and cash transaction are recorded. B. Opening balance of cash is shown in Dr side of the cash book as ‘To Balance b/d’ C. Only transactions of cash receipt and payments are recorded D. This book cannot show a credit balance?.
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