The closing balance of petty cash book is considered as_________?

Related Mcqs:

1. The closing balance of a petty cash book is a / an___________?

   A. Liability
   B. Gain
   C. Assets
   D. Loss

2. A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash book?

   A. $2000 will be debited in cash book
   B. $2000 will be credited in cash book
   C. $4000 will be debited in cash book
   D. $4000 will be credited in the cash book

3. Petty cash balance is a/an___________?

   A. Assets
   B. Expenditure
   C. Liability
   D. None

4. While finalizing the current year‘s accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by 50,000. As a result

   A. Previous year‘s profit is overstated and current year‘s profit is also overstated.
   B. Previous year‘s profit is understated and current year‘s profit is overstated.
   C. Previous year‘s profit is overstated and current year‘s profit is understated.
   D. There will be no impact on the profit of either the previous year or the current year.

5. A cash book that is used to record the small payments of cash is generally referred as_________?

   A. Simple cash book
   B. Two column cash book
   C. Three column cash book
   D. Petty cash book

6. Petty cash fund is supposed to be replenished?

   A. Every day
   B. Every half year
   C. Every year
   D. At the end of every accounting period

7. Which of the following is not a cause of difference in balance as per cash book and balance as per bank pass book___________?

   A. Errors in cash book
   B. Errors in pass book
   C. Cheques deposited and cleared
   D. Cheques issued but not presented for payment

8. Balance as per cash book(adjusted.=$1000, Unpresented checks=$2000, Uncredited checks=$500, Deposit in transit=$500. Compute the balance as per bank statement.

   A. $2000
   B. Zero
   C. $3000
   D. $2500

9. Difference in Bank Balance as per Pass Book and Cash Book may arise on account of_____________?

   A. Cheque issued but not presented
   B. Cheque issued but dishonoured
   C. Cheque deposited and credited by bank
   D. Both A and B

10. Debit balance = Credit balance in a trial balance indicates that:

    A. No error in recording transactions
    B. No error in posting entries to ledger accounts
    C. Account balances are correct
    D. Mathematically Capital+Liabilities=Assets