18 Questions
What is a cash book primarily used for?
Recording both cash receipts and disbursements
How are entries from the cash book transferred to the general ledger?
Transferred in an organized manner
What is the purpose of dividing the cash book into cash disbursements and cash receipts journals?
To record cash payments and receipts separately
How can mistakes in the cash book be easily detected?
By verifying the cash balance against the actual cash on hand
What does the term 'defalcation of money' refer to in relation to the cash book?
Detecting theft or embezzlement of funds
In what way is a cash book described as both a ledger and a journal?
It serves as a record of all financial transactions
What does a petty cash book help keep track of?
Routine and small expenses
Who is responsible for managing petty cash and keeping track of it in a business?
The chief bookkeeper
What kind of expenses are typically recorded in a petty cash book?
Routine daily expenses
What is the purpose of maintaining a cash book in a business concern?
To identify and rectify frauds or discrepancies
Who is typically responsible for entering all purchases in the debit column of a petty cash book?
The PCB accountant
In what form are minor purchases usually made when recorded in a petty cash book?
Coins and cash
What function does the cash book perform for a company?
Records all cash receipts on the debit side and cash payments on the credit side
Which type of cash book is mostly used by individuals for tracking personal finances?
Single Column Cash Book
What is a key advantage of using a Double Column Cash Book over a Single Column Cash Book?
Tracks each individual transaction in more detail
Which statement best describes the Single Column Cash Book?
Records transactions in a single column and updates total received or paid out daily
What limitation is associated with the Single Column Cash Book?
Does not track individual transactions in depth
Why do businesses prefer using Double Column Cash Books?
To show details of each transaction separately
Learn about the cash book, a financial journal that records all cash receipts, disbursements, bank deposits, and withdrawals. Understand how entries in the cash book are posted into the general ledger and how to analyze daily cash transactions. Discover how the cash in hand balance is determined through the Cash Book.
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