Take this quick test on the cash book to help you prepare for your exams and interviews. If you find it difficult to answer any of these multiple choice questions (MCQs), read more about the cash book first and complete the MCQ test afterward.
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Cash Book MCQs FAQs
A cash book is a financial record of all cash transactions that occur within a business. This includes receipts, payments, and withdrawals. The cash book is used to help track the business's overall financial position.
The cash book can be used to calculate the business's Cash Flow, track inventory levels and monitor financial performance. It can also be used to help make informed business decisions.
The following information is typically included in a cash book: date, transaction type, description of the transaction, amount, and source of the cash.
The cash book is updated each time a transaction occurs. This information is then used to produce Financial Statements and other reports.
The main benefits of using a cash book are that it helps businesses track their financial position, make informed business decisions, and improve their overall financial performance.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.