Category: Accounting

An employee of a music store went to a bank and lodged the previous night’s takings, held overnight in the firm’s safe.

This transaction should be recorded in the store’s Cash Book as……?

Select ONE answer:

    Column to Debit                  Column to Credit

1.     Cash                                              Bank
2.     Bank                                             Cash
3.     Cash                                              Cash
4.     Bank                                             Bank

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. Not correct
2. Correct – Lodging cash on hand increases the bank balance (thus requiring a debit entry to increase the asset of bank) and reduces the cash balance (thus requiring a credit entry to decrease the asset of cash).
3. Not correct
4. Not correct

 

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A bank overdraft…?

Select ONE answer:

1. is an asset.
2. can exist on either a deposit account or a current account.
3. means that more money has been paid out of a bank current account than has been lodged into it.
4. None of the above.

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 3

1. A bank overdraft is a liability.
2. A bank overdraft cannot exist on a deposit account.
3. Correct
4. Not correct

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

The payee of a cheque is…?

Select ONE answer:

1. The bank in which the person writing the cheque has his / her account.
2. The person to whom the cheque is written.
3. The person who writes the cheque or on whose account the cheque is written.
4. None of the above.

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. This is the bank on which the cheque is drawn.
2. Correct
3. The person who writes the cheque or on whose account the cheque is written is known as the ‘drawer’ of the cheque.
4. Not correct

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

The ‘drawer’ of a cheque is…?

Select ONE answer:

1. The bank in which the person writing the cheque has his / her account.
2. The person to whom the cheque is written.
3. The person who writes the cheque or on whose account the cheque is written.
4. None of the above.

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 3

1. This is the bank on which the cheque is drawn.
2. The person to whom the cheque is written is known as the ’payee’.
3. Correct
4. Not correct

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

A paying-in slip is…?

Select ONE answer:

1. a once-off instruction to a bank to pay a specified amount from your current account.
2. the form which must be completed when lodging money into a bank account.
3. the same as a cheque.
4. None of the above.

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. a once-off instruction to a bank to pay a specified amount of money from your current account is a cheque.
2. Correct
3. a cheque is an instruction to a bank to pay a specified amount from your current account.
4. Not correct

 

This work is licensed under a Creative Commons Attribution 4.0 International License.