A cash book that is used to record the small payments of cash is generally referred as_________?
Correct answer: D. Petty cash book
- A. Simple cash book
- B. Two column cash book
- C. Three column cash book
- D. Petty cash book
Explanation
A petty cash book is specifically maintained for recording small, frequent cash payments such as postage, stationery and local travel. A simple or columnar cash book records broader cash transactions.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Accounting Principles questions
Drawings by owner of business are generally recorded on which of the following side of a cash book?
Payment of rent expenses is recorded on which side of cash book?
Cash discount is allowed on _______ repayment of debt.
Postage stamps on hand are considered as_________?
Purchase of office equipment for cash will be recorded on which of the following sides of a cash book?
A simple or one column cash book usually has which of the following main columns?