Tag: petty cash book

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Multiple choice business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

A document for disbursement or payment of small amount from petty cash fund is known as ___________.

  1. Payment voucher

  2. Petty receipt

  3. Petty cash voucher

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A petty cash voucher is a document that is issued when a payment is made from a petty cash fund. A petty cash fund is created to disburse small amount of expenses that take place on a daily basis.

Multiple choice business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

Petty cash vouchers should be _____________ numbered.

  1. Randomly

  2. Serially

  3. Chronologically

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A petty cash voucher is a document that is issued when a payment is made from a petty cash fund. A petty cash fund is created to disburse small amount of expenses that take place on a daily basis. Petty cash vouchers should be serially numbered for the convenience of auditing and to help in having a easy check on the transactions. 

Multiple choice business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

A document with the help of which a particular amount is withdrawn from the petty cash fund is known as ___________ voucher.

  1. Journal

  2. Cash

  3. Memo

  4. Receipt
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A petty cash voucher/cash voucher is a document that is issued when a payment is made from a petty cash fund. A petty cash fund is created to disburse small amount of expenses that take place on a daily basis.

Multiple choice business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

A cashier shall make use of ___________ vouchers to reconcile the balances of the petty cash funds.

  1. Journal

  2. Memo

  3. Receipt

  4. Cash
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A cash memo/ petty cash memo is a document that is used when money is being withdrawn from the petty cash fund. A petty cash fund is created to meet all the petty/small transactions that take place in the organisation on daily basis. A cashier can check the cash memo to reconcile all the transactions as they are the record to all the transactions of petty cash fund. 

Multiple choice business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

State whether true or false:
There is no set format of an accounting voucher.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. Accounting voucher is a document that acts as a proof of a transaction. There is no set format of accounting voucher. There are different types of voucher internal or external, cash voucher, petty cash voucher, etc. 

Multiple choice business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

For auditing the business transactions, __________ voucher is the document which gives proper information to the auditor of every accounting transaction.

  1. Cash

  2. Memo

  3. Receipt

  4. Journal
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A journal voucher is a very helpful document in auditing as it is a voucher that consists of all the details of transactions like the date of transactions, amount, etc. A journal voucher is prepared for every transaction. They are serially numbered for convenience purpose so that journal can be prepared.  

Multiple choice business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

State whether true or false:
Accounting vouchers are those which comprise unreliable and limited information.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

False. Voucher is a document that acts as an evidence that the payment is made or that a particular transaction has occurred. Vouchers are made for every transactions, they are serially numbered and help to check the authenticity of a particular transaction.

Multiple choice business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

It is not possible to make a journal entry without a proper ___________ voucher which gives all details of an accounting transaction.

  1. Cash

  2. Debit

  3. Credit

  4. Journal
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A Journal voucher is a voucher that consists of all the details of transactions like the date of transactions, amount, etc. A journal voucher is prepared for every transaction. It is the basis for making a journal. They are serially numbered for convenience purpose so that journal can be prepared.  A journal voucher keeps a record of all the transactions hence helps in the recording or transactions and making of journal.

Multiple choice business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

Cash vouchers are of ______________ types.

  1. One

  2. Two

  3. Three

  4. Four
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cash vouchers are of two types viz. debit voucher and credit voucher. A debit voucher is prepared when cash payments are received whereas a credit voucher is prepared when cash payments are made. They are the documentary evidence for payment of cash or for receiving cash. 

Multiple choice business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

State whether true or false:
In order to verify the accounting transactions, vouchers are considered as a reliable document.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. Voucher is a document that acts as an evidence that the payment is made or that a particular transaction has occurred. Vouchers are made for every transactions, they are serially numbered and help to check the authenticity of a particular transaction.