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Grade 8 Revision sheet-------Objective styled questions

Lesson 5- Petty cashbook:

Ch 5- Petty cashbook- OBJECTIVE TYPE REVISION QUESTIONS

Q1. The balance of petty cash is :

A. an expense

B. revenue

C. an asset

D. liability

Answer: C

Q2. which book is used to record the payments of low value?

A. cashbook

B. small payments book

C. purchase book

D. petty cashbook

Answer: D

Q3. In a petty cashbook, the system followed is known as :

A. Accrual system

B. Imprest system

C. Cash system

D. None of these

Answer: B

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Q4. A business maintains an imprest system of $500 every month. During the
month of July, the following expenses were paid out by the petty cashier-
Telephone-$150 , Tiffin-$50, small repairs- $30, Taxi fare-$100. What is the
amount for restoring the pettycash for the month of August?

A. $ 300

B. $ 170

C. $ 330

D. $ 270

Answer: C

Q5. Pettycash maybe used to pay:

A. the expenses relating to postage and conveyance.

B. salary to administrative staff.

C. for the purchase of furniture and fixtures.

D. for the purchase of raw materials.

Answer: A

Q6. A petty cashbook is used to record

A. payments of high value

B. payments of low value

C. purchases of building

D. Purchases of furniture

Answer: B

Q7. The person who is responsible for the petty cash is called

A. petty cash voucher

B. Administrative assistant

C. Petty cash assistant

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D. Petty cashier

Answer: D

Q8. The petty cash Voucher is:

A. used instead of a cheque for small payments

B. the documentary evidence that a petty cash payment has been made

C. is the document taken and presented for payment for small amounts

D. A numbered document used to record the balance of the petty cash fund.

Answer: B

Q9. which of the following transactions should be entered in the petty

cashbook?

A. salary payments

B. stock issued

C. subscriptions

D. Travelling expenses

Answer: D

Q10. what is the name given to the columns in the pettycashbook?

A. Line

B. Miscellaneous

C. Imprest

D. Analysis

Answer: D

Q11. Which transaction would not belong in the petty cashbook?

A. Payment for coffee

B. payment for loan interest

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C. payment for petrol

D. payment for postage

Answer :B

Q12.Which of the following statements is true about the balance in the petty
cash account?

a. It is a liability
b. It is an asset
c. It is an expense
d. None of the above
Answer: b

Q13.

Answer : C
Q14.

Answer :B
Q15.
1. True or False: A petty cash
book is used to record high-
value cash payments.
Answer: False

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Q16.
2. What is the purpose of
maintaining a petty cash book?
a) To record large cash
payments b) To serve as a
ledger account for petty cash
transactions c) To record
transactions directly in the
ledger d) To track major
expenses of the business
Answer: b) To serve as a ledger account for petty cash transactions

Q17.
3. Fill in the blank: The imprest
system of petty cash ensures
that the petty cashier starts ---
each period with the same
_______.
Answer: Amount of money

Q18.
4. Who typically maintains the
petty cash book? a) Senior
management b) Chief cashier
c) Junior member of staff d)
External auditor
Answer: c) Junior member of staff

Q19.
5. True or False: The chief
cashier checks the work of the
petty cashier at irregular
intervals.
Answer: False

Q20.
6. What is the purpose of a petty
cash voucher? a) To track
major business expenses b) To
request petty cash from the
chief cashier c) To record small

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cash payments made by staff d)

To request a salary advance
Answer: c) To record small cash payments made by staff

Q21
7. Fill in the blank: Analysis
columns in a petty cash book
are used to divide payments
into different ________.
Answer: Categories

Q22.
8. How are entries recorded in a
petty cash book during the
period? a) Only money paid
out is recorded b) Only money
received from the chief cashier
is recorded c) Both money
received and paid out are
recorded d) No entries are
recorded during the period
Answer: c) Both money received and paid out are recorded

Q23.
9. True or False: The total of the
analysis columns in a petty
cash book should agree with
the total paid column.
Answer: True

Q24.
10.What is the purpose of
balancing the total received and
total paid columns at the end of
the period in a petty cash book?
a) To calculate the total profit
b) To determine the remaining
cash balance c) To prepare
financial statements d) To
verify the accuracy of
transactions
Answer: d) To verify the accuracy of transactions

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Q25.State whether the following sentences are true or false.

True or false

Under the imprest system the petty cashier receives the same
amount every month from the chief cashier.

Any member of staff wishing to obtain petty cash must

present the petty cashier with a petty cash voucher.

The petty cash book is not part of the double entry system.

Fraud is more difficult when a petty cash book is maintained

using the imprest system.

Using a petty cash book reduces the number of entries in the

sales ledger.

True or
false
Under the imprest system the petty cashier receives the same False
amount every month from the chief cashier.
Any member of staff wishing to obtain petty cash must present True
the petty cashier with a petty cash voucher.
The petty cash book is not part of the double entry system. False
Fraud is more difficult when a petty cash book is maintained True
using the imprest system.
Using a petty cash book reduces the number of entries in the False
sales ledger.

True or false:

Q26. the petty cash payments total should be equal to the sum of the analysis
column.

True /False

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Q27.

Q. The analysis column is used to group incomes of same category.

True/ False

IGCSE Accounting Grade 8