Introducing Cash book - JSS2 Business studies Past Questions and Answers - page 1

1

What is a cash book?

A

A book for recording only bank transactions

B

A book for recording all cash transactions

C

A book for recording only sales transactions

D

A book for recording only purchase transactions

correct option: b
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2

Which type of cash book contains only one column on each side?

A

Single column cash book

B

Two column cash book

C

Three column cash book

D

Four column cash book

correct option: a
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3

How many columns are there in a two column cash book?

A

One

B

Two

C

Three

D

Four

correct option: b
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4

What is recorded in the bank column of a cash book?

A

Bank transactions

B

Cash transactions

C

Discount transactions

D

Purchase transactions

correct option: a
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5

Which column in a cash book records discounts given or received?

A

Cash column

B

Bank column

C

Discount column

D

Purchase column

correct option: c
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6

What is the purpose of the cash column in a cash book?

A

To record bank transactions

B

To record discount transactions

C

To record cash receipts and payments

D

To record purchase transactions

correct option: c
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7

In a three column cash book, what is the third column typically used for?

A

Bank transactions

B

Cash transactions

C

Discount transactions

D

Purchase transactions

correct option: c
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8

How is the opening balance recorded in a cash book?

A

At the end of the accounting period

B

In the middle of the accounting period

C

At the beginning of the accounting period

D

It is not recorded

correct option: c
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9

What is the final step in preparing a cash book?

A

Balancing

B

Recording transactions

C

Opening balance

D

Reconciliation

correct option: a
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10

Where are the entries from the cash book posted?

A

To the general journal

B

To the general ledger

C

To the trial balance

D

To the income statement

correct option: b
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