Question #1: The Petty Cash Book is both a Book of Prime Entry and part of the D
ID: 2432696 • Letter: Q
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
Explanation / Answer
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)