1. WHAT IS INTEREST? A. PAYMENT FOR THE USE OF MONEY. B. AN EQUITY INVESTMENT. C. RETURN ON CAPITAL. D. LOAN. 2. WHAT BEST DESCRIBES THE TIME VALUE OF MONEY? A. THE INTEREST RATE CHARGED ON A LOAN. B. ACCOUNTS RECEIVABLE THAT ARE DETERMINED UNCOLLECTIBLE. C. AN INVESTMENT IN A CHECKING ACCOUNT. D. THE RELATIONSHIP BETWEEN TIME AND MONEY. 3. A CASH OVER AND SHORT ACCOUNT A. IS NOT GENERALLY ACCEPTED. B. IS DEBITED WHEN THE PETTY CASH FUND PROVES OUT OVER. C. IS DEBITED WHEN THE PETTY CASH FUND PROVES OUT SHORT. D. IS A CONTRA ACCOUNT TO CASH. 4. IN PREPARING ITS MAY 31, 2018 BANK RECONCILIATION, CATT CO. HAS THE FOLLOWING INFORMATION AVAILABLE: (3MARKS) BALANCE PER BANK STATEMENT, 5/31/18 $35,000 DEPOSIT IN TRANSIT, 5/31/18 5,400 OUTSTANDING CHECKS, 5/31/18 4,900 NOTE COLLECTED BY BANK IN MAY 1,250 THE CORRECT BALANCE OF CASH AT MAY 31, 2018 IS A. $40,400. B. $34,250. C. $35,500. D. $36,750