AP1 Unit 1 MCQ: Cash Book1. Which one of the following describes %22Trade Discount%22?
The amount deposited into the bank is $700., The business has $700 in the bank account., The bank account has been overdrawn by $700., The amount received exceed the amount paid out by $700.,
2. The total of the discount column on the debit side of the Cash Book is posted to the
$2,400 debit., $2,400 credit., $2,600 debit. web tool , $2,600 credit.,
3. In a business%27s books, the Cash at Bank ledger account shows a credit balance of $7,800. What does this mean?
Debit side of the Discount Allowed account., Credit side of the Discount Allowed account., Debit side of the Discount Received account., Credit side of the Discount Received account.,
4. A debit balance of $400 in the bank column in the Cash Book shows that
There is $400 cash in hand., There is $400 cash at the bank., The bank account is overdrawn by $400., The owner has contributed $400 cash to the business bank account.,
5. If the bank account shows a credit balance of $2,500, the account holder deposits $500 and draws a cheque for $400, the balance in the bank account should be
Paid rent by cheque., Bought goods paying by cash., Bought office equipment on credit., Owner paid for his family vacation using a business cheque.,
6. There is a debit figure of $500 in the Discount Allowed column and $3,500 in the Bank column in the Cash Book. Calculate the percentage of discount given to the trade receivable in this case (round off to 2 decimal points).
The business has paid the bank $7,800., The business has a bank overdraft of $7,800., The business has deposited $7,800 into its Bank account., The amount $7,800 inside the Bank account belonged to the business.,
7. A credit balance of $700 in the %22Bank%22 column of the Cash Book shows that
The cheque is post-dated., The information on the cheque is incomplete., The cheque was issued and dated 3 months ago., The cheque was issued and dated 6 months ago.,
8. Which one of the following is NOT the reason for cheque rejection by Bank?
It is a reduction in the invoiced amount which is the amount owned., It is recorded in the ledger account., It is given to encourage its customers to buy in large quantities, and to encourage customer patronage and loyalty., It is given to encourage its credit customers to settle their debts wihtin a shorter time period than the credit period given.,
9. Which one of the following is recorded on the CREDIT side of the Cash Book?
12.50%25., 14.29%25 english , 16.67%25, 25.00%25,