1. A bank reconciliation is

Select one:

a.A formal statement that lists all of the bank account balances of the entity.

b.A schedule that accounts for the difference between an entitys cash balance as shown in the bank statement and the cash balance shown in the general ledger.

c.A statement sent by the bank to depositor on a monthly basis.

d.A merger of two banks that previously were competitors.

2. The overall objective of financial reporting is to provide information Select one:

a.About financial performance b.About asset, liability and equity c.That allows owners to assess management performance d.That is useful for decision making

3. Under existing accounting rules, cash is considered as a

Select one: a.Fixed asset b.Non-monetary asset c.Financial asset d.Depreciable asset

4.Which statement is true about the Conceptual Framework for Financial Reporting?

Select one: a.The Conceptual Framework is not a Standard. b.In cases of conflict, the requirements of the relevant IFRS prevail over those of the Conceptual Framework. c.All of these statements are true about the Conceptual Framework. d.The Conceptual Framework describes the objective of financial reporting and the concepts for general purpose financial statements.

5.When a petty cash fund is used, which of the following is true?

Select one: a.The balance of the petty cash fund should be reported on the balance sheets as investment b.Entries that include a credit to the cash account should be recorded at the time the payment from the petty cash fund is made. c.The petty cashier summaries of petty cash payments serve as a journal entry that is posted to the appropriate general ledger account. d.The reimbursement of the petty cash fund should be credited to the cash account.

6.Which of the following is most likely not considered as cash for financial reporting purposes?

Select one:

a.Stale checks issued to creditors

b.Bank drafts and money orders c.Undelivered checks to trade suppliers d.Post-dated checks from customers

7.Which of the following provides the why or the goal and purpose of accounting?

Select one:

a.Element of financial statements

b.Qualitative characteristic of accounting information c.Objective of financial reporting d.Measurement and recognition concept

8.Cash equivalents are short-term and highly liquid investments that are Select one: a.Readily convertible into cash and acquired 3 months before maturity b.Readily convertible into cash and acquired one year before maturity c.Classified as available-for-sale securities d.Readily convertible into cash and acquired 6 months before maturity

9.Cash set aside for a particular purpose (i.e. restricted)

Select one:

a.is still classified as current asset regardless of the purpose for its establishment

b. is recorded in off-balance sheet records c.is immediately classified as non-current d.May be classified as current or non-current depending on the purpose for its establishment

10. All of the following can be classified as cash and cash equivalents, except?

Select one:

a.Redeemable preference shares acquired and due in 60 days b.Bank overdraft c.Equity investments d.Commercial papers held and due for repayment in 90 days

11. Which of the following statements is incorrect?

Select one:

a.The accounting functions should be separate from the custodianship of entity assets

b.The responsibility for receiving merchandising and paying for it should usually be given to one person

c.Certain clerical personnel in an entity should be rotated among various jobs.

d.An entity personnel should be given well defines responsibilities.

12. A proof of cash

Select one: a.is a summary of cash receipts and cash payments.

b.is a formal statement showing the total cash receipts during the year.

c.is a physical count of currencies on hand at the end of reporting period.

d.is a four-column bank reconciliation showing reconciliation of cash balances per book and per bank at the beginning and end of the current month and reconciliation of cash receipts and cash disbursement of the bank and the depositor during the current month.

13. Which of the following items must be added to the cash balance per ledger in preparing a bank reconciliation which ends with adjusted balance?

Select one:

a.Service charge b.Erroneous bank credit c.Note receivable collected by the bank in favor of the depositor and credited to the account of the depositor. d.NSF customer check

14. Cash equivalents are

Select one:

a.Short-term and highly liquid investments that are readily convertible into cash and acquired three months before maturity b.Short-term and highly liquid marketable equity securities c.Short-term and highly liquid investments that are readily convertible into cash with remaining maturity of three months d.Short-term and highly liquid investments that are readily convertible into cash

15. Thor Company provided the following data on December 31, 2018:

Checkbook balance

4,000,000

Bank statement balance

5,000,000

Cash in sinking fund

2,000,000

Check drawn on Thors account, payable to supplier, dated and recorded on December 31, 2018 but not mailed until January 15, 2019 amounted to P500,000.

On December 31, 2018, what amount should be reported as cash under current assets?

Select one:

a.3,500,000

b.6,500,000

c.4,500,000

d. 5,500,000

16. The objective of financial reporting in the Conceptual Framework Select one: a.Is the foundation for the Conceptual Framework. b.All of the choices are correct regarding the objective of financial reporting. c.Is not found in the Conceptual Framework. d.Includes the qualitative characteristics that make accounting information useful.

17. Tranvia Company had the following balances on December 31, 2018:

Cash in checking account

350,000

Cash in money market account

750,000

Treasury bill, purchased November 1, 2018, maturing January 31, 2019

3,500,000

Time deposit purchased December 1, 2018, maturing March 31, 2019

4,000,000

What amount should be reported as cash and cash equivalents on December 31, 2018?

Select one:

a.8,600,000 b.4,600,000 c.1,100,000 d.3,850,000

18. Which of the following shall not be considered cash for financial reporting purposes?

Select one:

a.Money orders, certified and bank drafts b.Postdated checks and IOUs c.Petty cash funds and change funds d.Coin, currency and available funds

19. Which statement is not a specific objective of financial reporting?

Select one:

a.To provide information about entity resources, claims against those resources and changes in those resources.

b.To provide information that is useful in investment and credit decisions. c.To provide information that is useful in assessing cash flow prospects. d.To provide information on the liquidation value of an entity.

20. Bank overdraft

Select one:

a.Which cannot be offset is classified as current liability b. Which cannot be offset is classified as noncurrent liability c.Is a debit balance in a cash in bank account d.Is offset against demand deposit account in another bank