Tag: AQA

A £200 credit balance brought down in the cash columns of a firm’s cash book means that…?

Select ONE answer:

1. the firm has spent £200 more cash than it has received.
2. the firm has £200 cash in hand.
3. a mistake has been made in the recording of cash.
4. someone has stolen £200 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 3

1. Not correct
2. Not correct
3. Correct – A credit balance brought down on the cash columns of a firm’s cash book would indicate that the firm has a negative amount of cash. As this is clearly not possible, a mistake must have been made.
4. Not correct

 

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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

 

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

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.