Question

Question #1: The Petty Cash Book is both a Book of Prime Entry and part of the Double Entry System.

True

False

Question #2: Business have to choose whether to accept either cheques or cash payments when accepting payment from a customer.

True

False

Question #3: If a Supplier offers the business a discount for quick payment, we do not record this in the cash book.

True

False

Question #4: The DISCOUNT ALLOWED column in the Cash Book is like a mini “Sales Day Book” .

True

False

Question #5: Cash/Settlement discounts are system by which the recipient of the invoice is offered a discount for payment by a certain date.

True

False

Answer 1

Ans.1 The Petty Cash Book is both a Book of Prime Entry and part of the Double Entry System (TRUE)

Ans.2 Business have to choose whether to accept either cheques or cash payments when accepting payment from a customer (TRUE)

Ans.3 If a supplier offer the business a discount for quick payment we do not record this in the cash book  (FALSE)

Ans.4  The DISCOUNT ALLOWED column in the cash book is like a mini "Sales Day Book" (FALSE)

Ans. 5 Cash/Settlement discounts are system by which the recipient of the invoice is offered a discount for payment by a certain date (TRUE)