Introducing Cash book - JSS2 Business studies Past Questions and Answers - page 2
What does the closing balance of a cash book represent?
Total sales
Total purchases
Difference between total receipts and total payments
Bank balance only
Which type of cash book is suitable for small businesses with straightforward cash transactions?
Single column cash book
Two column cash book
Three column cash book
Four column cash book
What type of transactions are recorded in the bank column of a cash book?
Cash transactions
Bank transactions
Discount transactions
Purchase transactions
What is the primary purpose of reconciling the cash book with bank statements?
To record transactions
To identify discrepancies
To calculate discounts
To prepare financial statements
How many columns does a three column cash book have?
One
Two
Three
Four
What is the purpose of the discount column in a cash book?
To record cash transactions
To record bank transactions
To record discounts given or received
To record purchase transactions
What is the main purpose of a cash book?
The main purpose of a cash book is to record all cash transactions, including receipts and payments, in a systematic manner to provide a clear overview of cash flows.
How many types of cash books are commonly used, and what are they?
Commonly, there are three types of cash books: single column, two column, and three column cash books.
What does the bank column in a cash book represent?
The bank column in a cash book represents transactions related to the bank account, such as deposits, withdrawals, checks issued, and checks deposited.
What are the typical columns found in a three column cash book?
A three column cash book typically contains columns for cash, bank, and discount transactions.