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Chapter – 8
Cash Book
Encircle the most appropriate answer from the following :
1. The book in which all cash transactions are primarily recorded is called
- Pass book
- Cheque book
- Cash book
- Finance book
2. When cash is received from customer, generally a receipt is issued to the debtor which is called
- Payment voucher
- Cash voucher
- Receipt voucher
- Cash payment
3. When money is paid to a creditor or supplier a receipt is obtained from him which is called
- Payment voucher
- Cash voucher
- Receipt voucher
- Cash payment
4. A document evidencing cash receipts and payments and forming the basis for making entries in the cash book
- Payment voucher
- Cash voucher
- Receipt voucher
- Cash memo
5. All cash purchases cash sales are recorded in
- Purchase book
- Sale book
- Cheque book
- Cash book
6. A cash account always shows
- Debit balance
- Credit balance
- Both 1 and 2
- Nil balance
7. The cash book is a
- Subsidiary journal
- Ledger account
- Both 1&2
- Trial balance
8. It is used to record only cash receipts and payments
- Single column cash book
- Triple column cash book
- Two column cash book
- Sales book
9. A double column cash book is used to record
- Cash transactions only
- Cash and bank transactions
- Cash, band and discount transactions
- None of these
10. It is used to record cash, bank and discount transactions on debit and credit side
- Single column cash book
- Three column cash book
- Two column cash book
- Petty cash book
11. An entry which is recorded on the both sides of cash book is called
- Simple entry
- Contra entry
- Compound entry
- Combined entry
12. The money can be deposited into bank by mean of:
- Cash book
- Pay in slip book
- Cheque book
- Pass book
13. When cheque received, deposited into bank, bank account must be
- Credited
- Debited
- Both 1&2
- None of these
14. When cash withdrawn from the bank for the personal use of the owner, must be debited to:
- Cash account
- Drawings account
- Bank account
- Capital account
15. When cash is withdrawn from the bank for the business use of the owner, must be debited to
- Cash account
- Drawings account
- Capital account
- Bank account
16. Our cheque to Ali and Bros, returned dishonored should be credited to
- Cheque account
- Ali & bros account
- Cash account
- Bank account
17. Ahmed’s cheque endorsed to Akbar should be debited in
- Cash account
- Akbar’s account
- Cheque account
- Ahmed’s account
18. Received a cheque from bilal Rs. 1900 in full settlement of his debt Rs. 2000 should be debited to
- Cash account
- Discount allowed
- Both 1 & 2
- Bank account
19. Paid to Nadeem cash Rs. 5,000 and a cheque for Rs. 4,800 in full settlement of his dues Rs. 10,000 should be credited to
- Cash account
- Discount received account
- Bank account
- All of these
20. Cash account is a
- Real account
- Personal account
- Nominal account
- Both nominal and real account
21. The debit balances of cash & bank accounts in cash book are called
- Income
- Expenses
- Assets
- Liabilities
22. The credit balance of bank account in cash book is called
- Income
- Assets
- Expense
- Liabilities
23. A customer cheque returned dishonored is recorded in
- Return outward book
- Cash book
- Return inward book
- Bill Receivable book
24. The balance of petty cash book is
- Expense
- Liabilities
- Income
- Assets
25. The term imprest system is used in relation to
- Cheque book
- Pay in slip book
- Cash book
- Petty cash book
26. A book which is used to record small expenses is called
- Expenses book
- Cash book
- Petty cash book
- Cheque book