Standing orders are ________
Correct answer: A. Credited in the cash book
- A. Credited in the cash book
- B. Debited in the cash book
- C. Entered in the bank statement
- D. Entered in the petty cash balance
Explanation
A standing order is a regular payment made automatically by the bank on the business’s instruction, so it reduces the bank balance and is credited in the cash book. It first appears in the bank statement and must then be recorded in the cash book.
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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.
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