Favorable balance of bank statement implies that

A: Credit balance

B: Debit balance

C: Bank overdraft

D: Adjusted balance

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Credit balance

A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book

A: $1000 will be added to cash book balance

B: $2000 will be deducted from cash book balance

C: $3000 will be added to cash book balance

D: $3000 will be subtracted from cash book balance

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

$3000 will be subtracted from cash book balance

$5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash book.

A: $5000 will be credited

B: $5000 will be debited

C: $10,000 will be credited

D: $10,000 will be debited

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

$5000 will be credited

An entry which is made on both sides of a cash book is called__________?

A: Cash entry

B: Contra entry

C: Payment entry

D: Compound entry

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Contra entry

Cash book records:______________?

A: Cash payments

B: Cash receipts

C: Cash payments and cash receipts

D: Neither cash payments nor cash receipts

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Cash payments and cash receipts

Cash book is prepared by____________?

A: Bank

B: Accountant of business

C: Manager of a company

D: Banks cashier

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Accountant of business

Discount received is recorded on which of the following side of a cash book?

A: Receipts

B: Payments

C: Incomes

D: Expenditures

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Payments

The closing balance of petty cash book is considered as_________?

A: Liability

B: Asset

C: Expenses

D: Income

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Asset

A credit balance in cash book indicates?

A: Bank balance

B: Cash at bank

C: Bank overdraft

D: Bank underdraft

Answer & Explanation Discussion
Save for Later (0)
Please login to bookmarkClose

No account yet? Register

Bank overdraft

1 3 4 5 6 7 40