Advantages of Petty Cash Book - SS1 Accounting Past Questions and Answers - page 1
What is the purpose of a petty cash book?
To track small transactions
To track large transactions
To reconcile bank statements
What advantage does using a petty cash book provide?
Increased control over expenses
Increased risk of fraud
Reduced transparency
How does a petty cash book simplify accounting?
By recording all transactions in a single book
By reducing the number of transactions recorded in the primary cash book
By making it harder to reconcile accounts
What is the benefit of improved time management from using a petty cash book?
It frees up time for other important tasks
It increases the risk of errors
It reduces transparency in cash transactions
What does a petty cash book provide that can be helpful for auditing purposes?
A transparent record of all cash transactions
A record of only large transactions
A record of all credit transactions
What are some advantages of using a petty cash book?
The advantages of using a petty cash book include efficient tracking of small transactions, improved control over expenses, simplified accounting, better budgeting, increased transparency, and improved time management.