Financial Accounting ICOM Part 01 Top 500 + MCQS Download Pdf Chapter No 08

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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

  1. Pass book
  2. Cheque book
  3. Cash book
  4. Finance book

2. When cash is received from customer, generally a receipt is issued to the debtor which is called

  1. Payment voucher
  2. Cash voucher
  3. Receipt voucher
  4. Cash payment

3. When money is paid to a creditor or supplier a receipt is obtained from him which is called

  1. Payment voucher
  2. Cash voucher
  3. Receipt voucher
  4. Cash payment

4. A document evidencing cash receipts and payments and forming the basis for making entries in the cash book

  1. Payment voucher
  2. Cash voucher
  3. Receipt voucher
  4. Cash memo

5. All cash purchases cash sales are recorded in

  1. Purchase book
  2. Sale book
  3. Cheque book
  4. Cash book

6. A cash account always shows

  1. Debit balance
  2. Credit balance
  3. Both 1 and 2
  4. Nil balance

7. The cash book is a

  1. Subsidiary journal
  2. Ledger account
  3. Both 1&2
  4. Trial balance

8. It is used to record only cash receipts and payments

  1. Single column cash book
  2. Triple column cash book
  3. Two column cash book
  4. Sales book

9. A double column cash book is used to record

  1. Cash transactions only
  2. Cash and bank transactions
  3. Cash, band and discount transactions
  4. None of these

10. It is used to record cash, bank and discount transactions on debit and credit side

  1. Single column cash book
  2. Three column cash book
  3. Two column cash book
  4. Petty cash book

11. An entry which is recorded on the both sides of cash book is called

  1. Simple entry
  2. Contra entry
  3. Compound entry
  4. Combined entry

12. The money can be deposited into bank by mean of:

  1. Cash book
  2. Pay in slip book
  3. Cheque book
  4. Pass book

13. When cheque received, deposited into bank, bank account must be

  1. Credited
  2. Debited
  3. Both 1&2
  4. None of these

14. When cash withdrawn from the bank for the personal use of the owner, must be debited to:

  1. Cash account
  2. Drawings account
  3. Bank account
  4. Capital account

15. When cash is withdrawn from the bank for the business use of the owner, must be debited to

  1. Cash account
  2. Drawings account
  3. Capital account
  4. Bank account

16. Our cheque to Ali and Bros, returned dishonored should be credited to

  1. Cheque account
  2. Ali & bros account
  3. Cash account
  4. Bank account

17. Ahmed’s cheque endorsed to Akbar should be debited in

  1. Cash account
  2. Akbar’s account
  3. Cheque account
  4. Ahmed’s account

18. Received a cheque from bilal Rs. 1900 in full settlement of his debt Rs. 2000 should be debited to

  1. Cash account
  2. Discount allowed
  3. Both 1 & 2
  4. 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

  1. Cash account
  2. Discount received account
  3. Bank account
  4. All of these

20. Cash account is a

  1. Real account
  2. Personal account
  3. Nominal account
  4. Both nominal and real account

21. The debit balances of cash & bank accounts in cash book are called

  1. Income
  2. Expenses
  3. Assets
  4. Liabilities

22. The credit balance of bank account in cash book is called

  1. Income
  2. Assets
  3. Expense
  4. Liabilities

23. A customer cheque returned dishonored is recorded in

  1. Return outward book
  2. Cash book
  3. Return inward book
  4. Bill Receivable book

24. The balance of petty cash book is

  1. Expense
  2. Liabilities
  3. Income
  4. Assets

25. The term imprest system is used in relation to

  1. Cheque book
  2. Pay in slip book
  3. Cash book
  4. Petty cash book

26. A book which is used to record small expenses is called

  1. Expenses book
  2. Cash book
  3. Petty cash book
  4. Cheque book