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Application To Double Entry Book Keeping From Cash Book - SS1 Accounting Past Questions and Answers - page 1

1

What is the purpose of a cash book in double-entry bookkeeping?

A

To record all financial transactions of a business 

B

To record all cash transactions of a business

C

To update the general ledger

correct option: b
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2

What is the purpose of the general ledger in double-entry bookkeeping?

A

To record all financial transactions of a business

B

To record all cash transactions of a business

C

To keep detailed records of specific types of transactions

correct option: a
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3

What is the purpose of a subsidiary ledger in double-entry bookkeeping?

A

To record all financial transactions of a business

B

To record all cash transactions of a business 

C

To keep detailed records of specific types of transactions

correct option: c
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4

What is the purpose of posting entries from the cash book to the general ledger?

A

To ensure that the financial statements are accurate

 

B

To update the subsidiary ledgers

C

To keep track of cash receipts

correct option: a
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5

What is the purpose of posting entries from the cash book to the subsidiary ledgers?

A

To ensure that the financial statements are accurate

B

To update the general ledger

C

To record all cash transactions of a business

correct option: b
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6

What is the purpose of a ledger in double-entry bookkeeping?

The purpose of a ledger is to record all financial transactions of a business, including assets, liabilities, and equity.

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7

What is the difference between the general ledger and a subsidiary ledger in double-entry bookkeeping?

The general ledger is used to record all financial transactions of a business, while the subsidiary ledger is used to keep detailed records of specific types of transactions or accounts. 

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