Multiple choice

Salaries due for the month of March will appear

  1. on the receipt side of the cash book

  2. on the payment side of the cash book

  3. as a contra entry

  4. nowhere in the cash book
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Outstanding salaries (salaries due but not paid) are an accrued expense. They are recorded through a journal entry and appear in the ledger, NOT in the cash book. The cash book only records actual cash transactions.

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