Accounting Multiple Choice Question – 30 August 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting

If small cash payments are initially recorded in a Petty Cash Book, rather than being recorded directly into the general ledger, there will be . . .

Select ONE answer:

  1. more entries in the general ledger.
  2. fewer entries in the general ledger.
  3. the same number of entries in the general ledger.
  4. no entries in the general ledger in respect of petty cash.

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 2

  1. Incorrect – A Cash sales should be recorded in the cash book (or cash receipts book).
  2. Correct – There will be fewer entries in the general ledger because several transactions involving petty cash will be grouped in the petty cash book and then posted, as a single total, to the general ledger.
  3. Incorrect – Goods sold on credit should be recorded in the sales journal.
  4. Incorrect

 

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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