Neco Model Questions Vol1 2019 Financial Accounting Question 14

Practice objective / multiple choice question 14 from the 2019 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2019 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 14 NECO_MODEL_QUESTIONS_VOL1 • 2019 • FINANCIAL_ACCOUNTING • objective

On 15 July, ABC Ltd paid (₦45{,}000) cash for office supplies and at the same time received (₦20{,}000) from a customer into the bank. Which book of original entry should be used to initially record this compound transaction, and why?

Answer Options

Correct Answer A. Cash Book, because it records both cash payments and bank receipts in one entry.
B. Sales Journal, because it is used for recording cash sales and receipts from customers.
C. Petty Cash Book, because it handles small cash disbursements and receipts separately.
D. General Journal, because it records all transactions in chronological order.
Correct Answer
A
Correct Option:
Cash Book, because it records both cash payments and bank receipts in one entry.

About This Question

This is Neco Model Questions Vol1 2019 Financial Accounting Question 14. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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