Y10 Accounting - C4 Double Entry Book-keeping (Part B)

What are the three main types of ledgers mentioned in the text?

• Sales ledger, Expense ledger, Asset ledger

• Sales ledger, Credit ledger, Asset ledger

• Cash ledger, Purchase ledger, Nominal ledger

• Sales ledger, Purchase ledger, Nominal ledger

What is the primary function of the cash book?

• To track inventory levels

• To record the movement of money

• To record only cash transactions

• To maintain records of all bank transactions

What is a contra entry?

• A transaction that appears on both sides of the cash book

• A payment made by cheque

• A discount given to customers

• A type of bank transfer

Which of the following is NOT a type of payment mentioned?

• Cash payment

• Direct debit

• Cheque

• Credit transfer

What does a bank overdraft represent?

• An asset of the business

• A type of income

• A type of expense

• A liability of the business

What is the difference between cash discount and trade discount?

• Both are the same

• Cash discount is a type of loan; trade discount is a type of payment

• Cash discount is for bulk purchases; trade discount is for prompt payment

• Cash discount is for prompt payment; trade discount is for bulk purchases

What happens when a cheque is dishonoured?

• It is returned to the business that issued it

• It is automatically deposited

• It is converted into cash

• It is accepted by the bank

What is recorded in the discount allowed column of the cash book?

• Total purchases

• Discount received from suppliers

• Total sales

• Discount given to customers

Which ledger contains accounts of assets, liabilities, income, and expenses?

• Sales ledger

• Purchase ledger

• Cash ledger

• Nominal ledger

What is the purpose of dividing the ledger into specialized areas?

• To reduce the number of transactions

• To increase complexity

• To make it more convenient to use

• To eliminate errors