Courses » SS1 » SS1 Accounting » Accounting Exam Topics » Advantages of Petty Cash Book - Questions and Answers

Advantages of Petty Cash Book - SS1 Accounting Past Questions and Answers - page 1

1

What is the purpose of a petty cash book?

A

To track small transactions

 

B

To track large transactions

C

To reconcile bank statements 

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2

What advantage does using a petty cash book provide?

A

Increased control over expenses

 

B

Increased risk of fraud

C

Reduced transparency

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3

How does a petty cash book simplify accounting?

A

By recording all transactions in a single book

B

By reducing the number of transactions recorded in the primary cash book 

C

By making it harder to reconcile accounts

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4

What is the benefit of improved time management from using a petty cash book?

A

It frees up time for other important tasks

B

It increases the risk of errors

C

It reduces transparency in cash transactions

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5

What does a petty cash book provide that can be helpful for auditing purposes?

A

A transparent record of all cash transactions 

B

A record of only large transactions 

C

A record of all credit transactions

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6

What are some advantages of using a petty cash book?

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