Test your knowledge of cash books by answering the 6 short questions given below. We suggest that you try to answer each question yourself before clicking on the "See answer" button. If you run into any difficulties when answering these questions, you should read our cash book article in the explanation section of this website.
1.
What is the cash book?
2.
What are the different kinds of cash book?
3.
What is a three-column cash book?
4.
What is s contra entry?
5.
What is a petty cash book?
6.
What is the imprest system of petty cash book?
You can also check:
Cash Book Q&A 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 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.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
