Accounting Multiple Choice Question – 13 August 2019

A £100 debit balance brought down in the cash column of a firm’s Cash Book means that…?

Select ONE answer:

1. the firm has £100 cash in hand
2. the amount of cash paid out exceeds the amount of cash received by £100
3. the total of cash paid out is £100.
4. the total of cash received is £100.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct
2. Cash paid out cannot exceed cash received.
3. The total of cash paid out could be £100 but only if the total of cash received was £200.
4. The total of cash received could be £100 but only if there was no cash paid out.

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