1. Cadmium, Inc., provides consultancy services and has the following information on September 30:

Cash register tape	$648
Cash count	795
Change Fund	150

Compute the cash shortage or cash overage to be recorded by Cadmium on September 30.

a.$10 shortage

b.$3 overage

c.$3 shortage

d.$10 overage

2. Which of the following is added to the bank statement balance to arrive at the adjusted bank statement balance while preparing a bank reconciliation statement?

a.A collection fee charged

b.A deposit in transit

c.An outstanding check

d.An NSF check

3. Burlywood Corp.'s ledger balance of cash as on December 31 is $4,425. It provides the following details for the month of December:

Note collected (principal, $800.00; interest, $8.00, signed by Johnson)	$808
Error in recording check No. 2234 payable to Beta, Inc.*	50
Bank service and collection charges	15

*The amount of $445, check No. 2234 payable to Beta, Inc., was recorded as $495 ($495 $445) Determine the adjusted ledger balance of cash as on December 31.

a.$5,268

b.$3,582

c.$5,168

d.$3,682

4. Which of the following is considered a debit memo in a bank account?

a.Wire transfers received

b.Notes collected

c.Interest income

d.Checks written

5. Which of the following is an internal control guideline for better management of cash payment?

a.Petty cash should be accessible to all the employees of the company.

b.Make sure all cash payments other than petty cash are made by cash.

c.Only the person preparing the check should sign it.

d.Make certain all checks are prenumbered.