Introducing Cash book - JSS2 Business studies Past Questions and Answers - page 2

11

What does the closing balance of a cash book represent?

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A

Total sales

B

Total purchases

C

Difference between total receipts and total payments

D

Bank balance only

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12

Which type of cash book is suitable for small businesses with straightforward cash transactions?

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A

Single column cash book

B

Two column cash book

C

Three column cash book

D

Four column cash book

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13

What type of transactions are recorded in the bank column of a cash book?

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A

Cash transactions

B

Bank transactions

C

Discount transactions

D

Purchase transactions

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14

What is the primary purpose of reconciling the cash book with bank statements?

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A

To record transactions

B

To identify discrepancies

C

To calculate discounts

D

To prepare financial statements

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15

How many columns does a three column cash book have?

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A

One

B

Two

C

Three

D

Four

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16

What is the purpose of the discount column in a cash book?

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A

To record cash transactions

B

To record bank transactions

C

To record discounts given or received

D

To record purchase transactions

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17

What is the main purpose of a cash book?

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18

How many types of cash books are commonly used, and what are they?

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19

What does the bank column in a cash book represent?

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20

What are the typical columns found in a three column cash book?

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