Cash, the tangible essence of currency, represents physical money in the form of banknotes and coins. It serves as a universal medium of exchange, allowing for immediate, straightforward transactions without reliance on digital systems. From the crisp texture of freshly printed bills to the satisfying clink of metal coins, cash embodies simplicity, accessibility, and a sense of tangible value in everyday commerce. Its portability and anonymity make it a timeless tool for purchases, tipping, and emergency funds, bridging generations in an increasingly cashless world.
Table of contents
- Part 1: OnlineExamMaker – Generate and share cash quiz with AI automatically
- Part 2: 20 cash quiz questions & answers
- Part 3: AI Question Generator – Automatically create questions for your next assessment
Part 1: OnlineExamMaker – Generate and share cash quiz with AI automatically
OnlineExamMaker is a powerful AI-powered assessment platform to create auto-grading cash assessments. It’s designed for educators, trainers, businesses, and anyone looking to generate engaging quizzes without spending hours crafting questions manually. The AI Question Generator feature allows you to input a topic or specific details, and it generates a variety of question types automatically.
Top features for assessment organizers:
● Prevent cheating by randomizing questions or changing the order of questions, so learners don’t get the same set of questions each time.
● AI Exam Grader for efficiently grading quizzes and assignments, offering inline comments, automatic scoring, and “fudge points” for manual adjustments.
● Embed quizzes on websites, blogs, or share via email, social media (Facebook, Twitter), or direct links.
● Handles large-scale testing (thousands of exams/semester) without internet dependency, backed by cloud infrastructure.
Automatically generate questions using AI
Part 2: 20 cash quiz questions & answers
or
1. What is cash in financial terms?
A) A physical form of money
B) Stocks and bonds
C) Real estate investments
D) Credit card balances
Answer: A
Explanation: Cash refers to physical currency, such as coins and banknotes, that is readily available for use in transactions.
2. Which of the following is NOT considered cash?
A) Coins in a wallet
B) Bank deposits
C) Accounts receivable
D) Currency notes
Answer: C
Explanation: Accounts receivable are amounts owed by customers and are not immediately available as cash, unlike coins, bank deposits, or currency notes.
3. What does cash flow represent?
A) The movement of cash in and out of a business
B) The total assets of a company
C) Profit earned from sales
D) Inventory levels
Answer: A
Explanation: Cash flow tracks the inflow and outflow of cash, helping to assess a business’s liquidity and financial health.
4. In a cash transaction, when is payment typically made?
A) At the time of purchase
B) After receiving goods
C) On credit terms
D) At the end of the month
Answer: A
Explanation: Cash transactions involve immediate payment, distinguishing them from credit transactions where payment is deferred.
5. What is a cash equivalent?
A) Short-term, highly liquid investments
B) Physical cash stored in a safe
C) Long-term bonds
D) Real estate holdings
Answer: A
Explanation: Cash equivalents are assets that can be quickly converted to cash with minimal risk, such as treasury bills or money market funds.
6. Which statement is true about cash management?
A) It involves optimizing the use of cash resources
B) It focuses only on spending cash
C) It ignores banking relationships
D) It is irrelevant for small businesses
Answer: A
Explanation: Effective cash management ensures that cash is available for operations while minimizing idle funds and risks.
7. What is the primary purpose of a cash register?
A) To record and manage sales transactions
B) To store inventory
C) To handle employee payroll
D) To track expenses only
Answer: A
Explanation: A cash register is used in retail to process payments, calculate totals, and maintain a record of cash inflows from sales.
8. In accounting, how is cash typically classified?
A) As a current asset
B) As a liability
C) As equity
D) As long-term investment
Answer: A
Explanation: Cash is classified as a current asset on the balance sheet because it is expected to be used or converted within one year.
9. What does “cash on delivery” mean?
A) Payment is made when goods are received
B) Payment is made in advance
C) Goods are delivered on credit
D) Payment is deferred indefinitely
Answer: A
Explanation: Cash on delivery (COD) requires the buyer to pay for goods at the time of delivery, reducing risk for the seller.
10. Which factor can negatively impact cash reserves?
A) Unexpected expenses
B) Increased sales
C) High-interest savings
D) Loan repayments
Answer: A
Explanation: Unexpected expenses can deplete cash reserves quickly, whereas increased sales or high-interest savings typically add to cash.
11. What is a cash advance?
A) Borrowing cash from a credit card or line of credit
B) A discount on purchases
C) Free cash given by a bank
D) A refund on returns
Answer: A
Explanation: A cash advance allows individuals to withdraw cash using their credit card, often with high fees and interest rates.
12. How does inflation affect cash holdings?
A) It reduces the purchasing power of cash
B) It increases the value of cash
C) It has no effect on cash
D) It turns cash into investments
Answer: A
Explanation: Inflation erodes the value of cash over time, meaning that the same amount of cash buys less goods and services in the future.
13. What is petty cash?
A) A small fund for minor expenses
B) Cash from major investments
C) Cash reserves for emergencies
D) Total cash in a business
Answer: A
Explanation: Petty cash is a small amount of cash kept on hand for immediate, small expenditures, such as office supplies.
14. In a business, what is cash conversion cycle?
A) The time taken to convert investments into cash
B) The period from inventory purchase to cash receipt
C) The cycle of daily transactions
D) The process of banking deposits
Answer: B
Explanation: The cash conversion cycle measures the time a company takes to convert its investments in inventory and resources into cash from sales.
15. Why might a business prefer electronic cash over physical cash?
A) For faster and more secure transactions
B) Because it is cheaper to produce
C) It eliminates the need for banks
D) It increases physical storage
Answer: A
Explanation: Electronic cash, like digital payments, offers speed, security, and ease of tracking compared to handling physical currency.
16. What is a cash discount?
A) A reduction in price for early payment
B) A fee for using cash
C) A bonus for large purchases
D) A penalty for late payment
Answer: A
Explanation: A cash discount incentivizes customers to pay invoices early, improving the seller’s cash flow.
17. How is cash typically reported on a financial statement?
A) Under current assets
B) Under liabilities
C) In the equity section
D) In the notes only
Answer: A
Explanation: On the balance sheet, cash is listed under current assets as it represents readily available funds.
18. What risk is associated with holding too much cash?
A) Opportunity cost of not investing
B) Increased purchasing power
C) Lower interest rates
D) Reduced expenses
Answer: A
Explanation: Excess cash may not earn returns, leading to opportunity costs where it could have been invested for higher yields.
19. What is a cash budget?
A) A plan estimating cash inflows and outflows
B) A record of past cash transactions
C) A list of expenses only
D) A projection of profits
Answer: A
Explanation: A cash budget helps businesses forecast cash needs, ensuring they maintain sufficient liquidity for operations.
20. In international trade, what is cash in advance?
A) Payment made before goods are shipped
B) Payment after delivery
C) A loan for imports
D) Credit extended by exporters
Answer: A
Explanation: Cash in advance requires buyers to pay exporters before receiving goods, reducing the seller’s risk in cross-border transactions.
or
Part 3: AI Question Generator – Automatically create questions for your next assessment
Automatically generate questions using AI