Accounting - Study Mode
[#896] Advance payment of tax is a . . . . . . . .
Correct Answer
(A) prepaid expense
[#897] Introduction of capital by owner of business is recorded on which side of a cash book?
Correct Answer
(A) Receipts
Explanation
Solution: Introduction of capital by owner of business is recorded on Receipts side of a cash book.
[#898] Cash book with cash and discount column is mostly referred to as
Correct Answer
(B) Two columns cash book
Explanation
Solution: Two Column Cash Books - In this discounts is also recorded with cash transactions. So both discounts received and the discount that is given is recorded here. If any organization is in a general practice of giving or receiving discounts this is the preferable option.
[#899] A cash book that is used to record the small payments of cash is generally referred to as
Correct Answer
(D) Petty cash book
Explanation
Solution: A cash book that is used to record the small payments of cash is generally referred to as Petty cash book. Petty cash book can be expressed as a formal summarization of the petty cash expenditures which refers to the day-to-day normal expenditures of the business which is not related to the direct line of the business.
[#900] Purchase of office equipment for cash will be recorded on which side of a cash book?
Correct Answer
(B) Payments
Explanation
Solution: Purchase of office equipment for cash will be recorded on Payments side of a cash book. All transactions in the cash book have two sides: debit and credit. All cash receipts are recorded on the left-hand side, and all cash payments are recorded by date on the right-hand side.