The cash book records____.

(a)

All cash receipts

(b)

All cash payments

(c)

Both (a) and (b)

(d)

All credit transactions

A cash book with discount, cash and bank column is called_______

(a)

Simple cash book

(b)

Double column cash book

(c)

Three column cash book

(d)

Petty cash book

Which of the following is recorded as contra entry?

(a)

Withdrew cash from bank for personal use

(b)

Withdrew cash from bank for office use

(c)

Direct payment by the customer in the bank account of the business

(d)

When bank charges interest

The balance in the petty cash book is_____.

(a)

An expense

(b)

A profit

(c)

An asset

(d)

A liability

Petty Cash may be used to pay __________

(a)

Salaries to Staff

(b)

Purchase of furniture and fittings

(c)

Expenses relating to post and telegrams

(d)

Purchased of old machinery