Page 57 - DMGT403_ACCOUNTING_FOR_MANAGERS

Accounting for Managers

Notes 3.11 Self Assessment

Fill in the blanks:
1. Only ................................. are recorded in the cash book.

2. Cash payments are recorded on the .............................. of the cash book.
3. According to the rules of accounting, all the business transactions are firstly recorded in
journal and then posted in .........................................

4. The .................................. is an incentive given or received for prompt payment.
5. The ........................... records all the transactions which are very small in terms of money.
6. An .................................... is given to the buyer when sales are made on credit
7. Purchase return book is also known as ...................................
Choose the correct Answer

8. Cash book is to record the:
(a) Cash receipts
(b) Cash Payments

(c) Both (a) & (b)
(d) Cash receipts, payment, Bank Receipts, payments, Discount received and paid
9. Sales book is to record the:
(a) The entire sales volume
(b) The cash sales only

(c) The credit sales only
(d) The credit sales with the discounts
10. When equity (net assets) is subtracted from total assets the amount remaining is known as
which of the following?
(a) Total revenue
(b) Total liabilities

(c) Total expenses
(d) Net income or net loss
(e) All of the above

3.12 Review Questions

1. Illustrate the preparation of records for non cash transactions with suitable examples.
2. Explain the nature of petty cash book.

3. What is the difference between a petty cash book and a simple cash book?

52 LOVELY PROFESSIONAL UNIVERSITY