POA Sec 3 Chap 6 Quiz
This flashcard set focuses on interpreting debit balances in the cash in hand account. A debit balance of $100 indicates that the business currently has $100 in physical cash on hand, available in the office.
There is a debit balance of $100 in the cash in hand account. This means thta
$100 remains in the office of the business
Cash has been overspent by $100
Total cash paid out is $100
Total cash received is $100
$100 remains in the office of the business
Key Terms
There is a debit balance of $100 in the cash in hand account. This means thta
$100 remains in the office of the business
Cash has been overspent by $100
Total cash paid out is $100
Total cash received is $100
$100 remains in the office of the business
Cash of $500 taken from the office was banked into the business bank account. What is the journal entry to record the transaction?
Debit Credit
Cash in hand Cash at bank
Cash at bank Cash in hand
Cash in hand Bank Overdraft
Bank overdraft Cash in hand
Cash at bank Cash in hand
When will a bank overdraft occur?
When a business has insufficient funds in the bank account to settle a cheque issued
Which of the following is a reason why a cheque is dishonoured
The amount of the cheque is low
The cheque is from a different bank from the payee’s bank
The cheque is not presented at the end of the month
The date on the cheque is more than 6 months
The date on the cheque is more than 6 months
Give reasons why cheques are rejected
Cheque has expired
Cheque is post dated
Information on the cheque is incomplete
Information on the cheque is inconsistent
P...
Which of the following is a reason for giving cash discounts?
To encourage customers to buy more goods
To encourage customers to buy goods on discount
To encourage customers to pay earlier, before the end of the credit period
To encourage customers to pay exactly on the last day of the credit period
To encourage customers to pay earlier, before the end of the credit period
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| Term | Definition |
|---|---|
There is a debit balance of $100 in the cash in hand account. This means thta | $100 remains in the office of the business |
Cash of $500 taken from the office was banked into the business bank account. What is the journal entry to record the transaction? | Cash at bank Cash in hand |
When will a bank overdraft occur? | When a business has insufficient funds in the bank account to settle a cheque issued |
Which of the following is a reason why a cheque is dishonoured | The date on the cheque is more than 6 months |
Give reasons why cheques are rejected | Cheque has expired Cheque is post dated Information on the cheque is incomplete Information on the cheque is inconsistent Payee has insufficient funds in the bank |
Which of the following is a reason for giving cash discounts? | To encourage customers to pay earlier, before the end of the credit period |
The journal entry to record discount allowed is | Debit Credit Discount allowed Trade receivables |
The journal entry to record discount received is | Debit Credit Trade payables Discount received |
Define cash discount. Explain why cash discounts are given | A cash discount is given to customers who buy on credit, in order to encourage the customers to pay earlier |
Explain 2 differences between trade discount and cash discount | A cash discount is given to encourage early payment whereas a trade discount is given to encourage the customers to buy in larger quantities |
Jin Convenience Store purchased inventory worth $4,570 from Health Drinks Supplies. A cheque was issued when the goods was delivered. State the journal Jin Convenience Store would record the transaction in? | Cash Book |
Jin Convenience Store purchased goods worth $10,320 from Chomp Snack Enterprise on credit. State the journal Jin Convenience Store would record the transaction in | Purchase Journal |
Jin Convenience Store returned good near expiry to Healthy Drinks Supplies. A cash refund of $420 was received immediately. State the journal Jin Convenience Store would record the transaction in | Cash Book |
Latifah Kitchen Supplies sold goods worth #1,438 to start Supermarket. A cheque was received when the goods are delivered and banked in immediately. State the journal Latifah Kitchen Supplies would record the transaction in | Cash Book |
Latifah Kitchen supplies sold goods worth $24,000 to Moved Department Store on credit. State the journal Latifah Kitchen Supplies would record the transaction in | Sales Journal |
Start Supermarket returned goods worth $900 to Latifah Kitchen Supplies as they were of the wrong specifications. A cheque was refunded. State the journal Latifah Kitchen Supplies would record the transaction in | Cash Book |
The petty cash has an imprest amount of $250 and the expenses paid out from the fund are cleaning 330, coffee and tea $20, postage $6 and stationary $21. The reimbursement drawn by the chief cashier to the petty cashier will be ____ | $77 |
The amount of reimbursement to the petty cash fund at the end of the period equals __________ | the total payments from the petty cash fund in that period |
The balance left in the Petty Cash Book is $45 and a reimbursemnt of $155 is made. The imprest amount is ____ | $200 |
The method used to prevent money from the petty cash to be stolen is called the _______ system | imprest |
The document used to record payments from the petty cash fund is called the ______ | petty cash voucher |