1.It is a report that is prepared for the purpose of bringing the balances of cash per records and per bank statement into agreement.

a.bank reconciliation statement

b.bank statement

c.bank balance report

d.all of these

2.If the unadjusted balance of cash per bank statement is greater than the adjusted balance and there no other reconciling items or errors, the difference would most certainly be caused by a

a.Credit memoc. Deposits in transit

b.Debit memod. Outstanding checks

3.Which of the following does not qualify as cash equivalent for a government entity?

a.Money market placement with an original term of 1 year but matures within 3 months after the reporting date.

b.Money market placement with an original term of 3 months.

c.Temporary investments in stocks that are expected to be sold within 1 month after the reporting date.

d.All of these qualify as cash equivalents.

4.Entity A estimates a risk of loss on a recognized asset at 20%. However, Entity A can only accept a risk of 5%. Entity A then enters into a forward contract to offset the excess risk of 15%. This process is best described as

a.Risk management

b.Forward hedging

c.Hedge accounting

d.Process risk hedge

5.Which of the following may not be included as part of cash in the note disclosures?

a.Post-dated checks drawn

b.Unreplenished petty cash fund consisting of only the coins and currencies held as at the reporting date

c.Issued checks that were cancelled because they became stale

d.Treasury bills acquired 3 months before maturity date

6.The entry to record a disbursement from the petty cash fund is

a.

Expense accounts

Cash-Modified Disbursement System

(MDS), Regular

xxx

xxx

b.

Expense accounts

Petty Cash

xxx

xxx

c.

Expense accounts

Cash-Collecting Officers

xxx

xxx

d.

Expense accounts

Cash-Treasury/Agency Deposit, Regular

xxx

xxx

e.

None of these.

7.According to the GAM for NGAs, government entities shall prepare bank reconciliations

a.on a daily basis

b.on a monthly basis

c.only at year-end

d.only as needed

8.Which of the following statements is incorrect regarding the accounting for unreleased checks by a government entity?

a.Unreleased checks are reverted back to cash.

b.Unreleased checks are physically cancelled.

c.The accounting procedures for unreleased checks prescribed under the GAM for NGAs apply only to commercial checks.

d.At the start of the year, a reversing entry is made for the unreleased checks in the previous year.

9.All of the following may cause the cancellation of a check drawn by a government entity except

a.The check becomes stale.

b.Wrong spelling or unnecessary markings on the check.

c.The check is dishonored.

d.The check is prepared using a pen with red ink.

10.It is a hedge of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or an identified portion of such an asset, liability or firm commitment, that is attributable to a particular risk and could affect surplus or deficit.

a.Fair value hedge

b.Hedge of a recognized asset or liability

c.Cash flow hedge

d.Hedge of a net investment in a foreign operation