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Test: Cash Book - 1 - Commerce MCQ

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30 Questions MCQ Test - Test: Cash Book - 1

Test: Cash Book - 1 for Commerce 2024 is part of Commerce preparation. The Test: Cash Book - 1 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Cash Book - 1 MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Cash Book - 1 below.

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Test: Cash Book - 1 - Question 1

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The Balance of Petty Cash is :

A.
An expense
B.
Revenue
C.
An asset
D.
Liability

Test: Cash Book - 1 - Question 2

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While balancing three column cash book, the discount columns are:

A.
Totaled but not adjusted
B.
Totaled and also adjusted
C.
Totaled but not balanced
D.
Balanced but not totaled

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Test: Cash Book - 1 - Question 3

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In petty cash Book, the system followed :

A.
Accrual System
B.
Imprest System
C.
Cash system
D.
None of these

Test: Cash Book - 1 - Question 4

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Imprest amount – Rs. 500. What will be the amount of re-imbursement if following expenses were incurred by the petty cashier during the month-Telephone =Rs. 150, Tiffin = Rs. 50, small Repairs = Rs. 30 general expenses = Rs. 100.

A.
300
B.
170
C.
330
D.
270

Detailed Solution for Test: Cash Book - 1 - Question 4

The correct option is C.

Imprest amount=500

Expenses=Telephone expenses+tiffin+small repairs +general expenses=150+50+30+100=330

Amount of reimbursement=Amount to be paid=₹300

Test: Cash Book - 1 - Question 5

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In three column Cash Book, when does contra entry occurs?

A.
Withdrawal of cash from bank
B.
Payment to creditors
C.
Withdrawal of cash from bank for personal use
D.
All of the above

Test: Cash Book - 1 - Question 6

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The balance in the petty cash book is

A.
An expense
B.
A Profit
C.
An asset.
D.
A liability

Test: Cash Book - 1 - Question 7

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Small payments are recorded in a book called:

A.
Cash Book
B.
Small payments book
C.
Purchase book
D.
Petty cash book

Test: Cash Book - 1 - Question 8

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Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:

A.
Purchase book
B.
Cash Book
C.
Petty Cash Book
D.
Journal

Test: Cash Book - 1 - Question 9

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What rate of commission is charged by the bank issuing the credit card :

A.
1% to 3%
B.
3% to 6%
C.
2% to 5%
D.
1% to 4%

Test: Cash Book - 1 - Question 10

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Cash book is a form of :

A.
Trial Balance
B.
Ledger
C.
Journal
D.
All of the above

Test: Cash Book - 1 - Question 11

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The Cash Book records

A.
All cash payments
B.
All cash payments
C.
All cash receipts and payments
D.
Cash and credit sale of goods.

Test: Cash Book - 1 - Question 12

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Cash book is a type of _______ but treated as a ________ of accounts.

A.
Subsidiary book, principal book
B.
Principal book, subsidiary book
C.
Subsidiary book, Subsidiary book
D.
Principal book, Principal book

Test: Cash Book - 1 - Question 13

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Salaries due for the month of March will appear

A.
On the receipt side of the cash book
B.
On the payment side of the cash book
C.
As a contra entry
D.
Nowhere in the cash book

Test: Cash Book - 1 - Question 14

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The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to the

A.
Credit of the discount allowed account.
B.
Debit of the discount received account.
C.
Credit of the discount received account
D.
Debit of the discount allowed account.

Test: Cash Book - 1 - Question 15

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Rent due for the month of March will appear _________of the cash book.

A.
On the receipt side
B.
On the payment side
C.
As a Contra Entry
D.
Nowhere

Test: Cash Book - 1 - Question 16

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Cheques received but deposited on the next day are recorded in :

A.
Cash column of the cash book
B.
Bank column of the cash book
C.
Both of these
D.
None of these

Detailed Solution for Test: Cash Book - 1 - Question 16

It is treated as cash received on the date of receipt and recorded in the cash column on receipts side. When the cheque is deposited the entry for deposit will be passed on the day of depositing the cheque into bank.

Test: Cash Book - 1 - Question 17

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If the debit and credit aspects of a transaction are recorded in the cash Book it is a :

A.
Contra entry
B.
Simple entry
C.
Double entry
D.
Single entry

Test: Cash Book - 1 - Question 18

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What will be journal entry when cash is withdrawn from bank for personal use ?

A.
Drawings A/C debit, Bank A/C credit
B.
Cash A/C debit, Bank A/C credit
C.
Bank A/C debit. Drawings A/C credit
D.
Bank A/C debit, Capital A/C credit

Test: Cash Book - 1 - Question 19

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Double entry in Cash Book is completed when :

A.
Salaries are paid by cheque
B.
Withdrawal of money from bank for personal use
C.
Deposited cash into bank
D.
None of these

Test: Cash Book - 1 - Question 20

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The Cash Book records

A.
All cash payments
B.
All cash payments
C.
All cash receipts and payments
D.
Cash and credit sale of goods.

Test: Cash Book - 1 - Question 21

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If Ram has sold goods for cash, the entry will be recorded

A.
In the Cash Book
B.
In the Sales Book
C.
In the Journal
D.
In the Inventory Book

Test: Cash Book - 1 - Question 22

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Petty cash may be used to pay

A.
The expenses relating to postage and conveyance.
B.
Salary to administrative staff
C.
For the purchase of furniture and fixtures
D.
For the purchase of raw material.

Test: Cash Book - 1 - Question 23

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Where two aspects of a transaction are posted in the Cash Book, such an entry is called

A.
Double entry
B.
Debit Entry
C.
Credit Entry
D.
Contra Entry

Test: Cash Book - 1 - Question 24

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While balancing three column cash book, the discount columns are:

A.
Totaled but not adjusted
B.
Totaled and also adjusted
C.
Totaled but not balanced
D.
Balanced but not totaled

Test: Cash Book - 1 - Question 25

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Which of the following is the kind of a cash book?

A.
Simple column cash book
B.
Double-column cash book
C.
Three-column cash book
D.
All of the above

Test: Cash Book - 1 - Question 26

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Imprest received of Rs. 100 was recorded as interest paid. What will be the effect on cash balance?

A.
Cash will reduce by 100.
B.
Cash will increase by 200
C.
Cash will reduce by 200.
D.
No effect on cash balance.

Detailed Solution for Test: Cash Book - 1 - Question 26

Description: Correct Entry:
Cash A/c Dr. 100
To Interest A/c 100
( Being interest received)
Wrong Entry:
Interest A/c Dr. 100
To Cash A/c 100
( Being interest paid)
The effect of the above wrong entry will be that cash balance will be reduced by Rs. 200.

Test: Cash Book - 1 - Question 27

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Contra entries are passed only when

A.
Three-column cash book is prepared
B.
Double-column cash book is prepared
C.
Simple cash book is prepared
D.
None of the above

Detailed Solution for Test: Cash Book - 1 - Question 27

Contra-entries are passed only when Double column cash book is prepared. The reason for making two entries is to comply with the principle of double entry.

Test: Cash Book - 1 - Question 28

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Which of the following is not a column of a three-column cash book?

A.
Cash column
B.
Bank column
C.
Petty cash column
D.
Discount column

Test: Cash Book - 1 - Question 29

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Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:

A.
Purchase book
B.
Cash Book
C.
Petty Cash Book
D.
Journal

Test: Cash Book - 1 - Question 30

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Rent due for the month of March will appear __________ in the Cash book.

A.
On the receipt side
B.
On the payment side
C.
As a contra entry
D.
No where

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Cash Book - 1 MCQs with Answers

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