Podcast
Questions and Answers
What is a cash book primarily used for?
What is a cash book primarily used for?
- Recording only daily cash receipts
- Recording only bank deposits
- Recording only bank withdrawals
- Recording both cash receipts and disbursements (correct)
How are entries from the cash book transferred to the general ledger?
How are entries from the cash book transferred to the general ledger?
- Ignored as they are not important
- Transferred in an organized manner (correct)
- Manually rewritten in a random order
- Automatically synced in real-time
What is the purpose of dividing the cash book into cash disbursements and cash receipts journals?
What is the purpose of dividing the cash book into cash disbursements and cash receipts journals?
- To complicate accounting procedures
- To record cash payments and receipts separately (correct)
- To avoid recording transactions correctly
- To eliminate the need for a general ledger
How can mistakes in the cash book be easily detected?
How can mistakes in the cash book be easily detected?
What does the term 'defalcation of money' refer to in relation to the cash book?
What does the term 'defalcation of money' refer to in relation to the cash book?
In what way is a cash book described as both a ledger and a journal?
In what way is a cash book described as both a ledger and a journal?
What does a petty cash book help keep track of?
What does a petty cash book help keep track of?
Who is responsible for managing petty cash and keeping track of it in a business?
Who is responsible for managing petty cash and keeping track of it in a business?
What kind of expenses are typically recorded in a petty cash book?
What kind of expenses are typically recorded in a petty cash book?
What is the purpose of maintaining a cash book in a business concern?
What is the purpose of maintaining a cash book in a business concern?
Who is typically responsible for entering all purchases in the debit column of a petty cash book?
Who is typically responsible for entering all purchases in the debit column of a petty cash book?
In what form are minor purchases usually made when recorded in a petty cash book?
In what form are minor purchases usually made when recorded in a petty cash book?
What function does the cash book perform for a company?
What function does the cash book perform for a company?
Which type of cash book is mostly used by individuals for tracking personal finances?
Which type of cash book is mostly used by individuals for tracking personal finances?
What is a key advantage of using a Double Column Cash Book over a Single Column Cash Book?
What is a key advantage of using a Double Column Cash Book over a Single Column Cash Book?
Which statement best describes the Single Column Cash Book?
Which statement best describes the Single Column Cash Book?
What limitation is associated with the Single Column Cash Book?
What limitation is associated with the Single Column Cash Book?
Why do businesses prefer using Double Column Cash Books?
Why do businesses prefer using Double Column Cash Books?
