Petty Cash Book: Meaning/Definition - SS1 Accounting Past Questions and Answers - page 1
What is a petty cash book?
A primary ledger used to record significant cash transactions
A subsidiary ledger used to record small cash transactions
A ledger used to record bank transactions
What kind of transactions are recorded in a petty cash book?
Significant cash transactions
Routine cash transactions, such as office supplies or refreshments
Bank transactions
Why is a petty cash book maintained separately from the primary cash book?
To reduce the number of entries in the primary cash book
To make it easier to record significant cash transactions
To track bank transactions
What is the purpose of using a petty cash book?
To track and control small cash transactions
To record significant cash transactions
To record bank transactions
Define a petty cash book in simple terms.
A petty cash book is a subsidiary ledger used to record small or routine cash transactions, such as office supplies or refreshments.