Please answer

11. A cash equivalent is a short-term, highly liquid investment that is convertible into known amount of cash:

a. is acceptable as a means to pay current liabilities.

b. has a current market value that is greater than original cost

c. is so near maturity that it presents insignificant risk of change in interest rate.

d. bears an interest rate that is at least equal to the prime rate of interest at the date of liquidation.

12. Which of the following is not true?

a. The imprest petty cash system in effect adheres to the rule of disbursement by check.

b. Entries are made to the Petty Cash account only to increase or decrease the size of the fund or to adjust the balance if not replenished at year-end.

c. The Petty Cash account is debited when the fund is replenished.

d. All of these answer choices are not true.

13. Petty cash fund:

a. is reported as part of cash balance at established amount.

b. should be replenished at the end of the accounting period.

c. will increase but never decrease.

d. always assumed unrestricted and use in operation.

14. In preparing the proof of cash, a bank made an error for a deposit made during the period, the amount of deposit is P200,000 but it was credited by bank at P220,000. The error was detected and corrected by the bank in the same period. How would this affect the proof of cash?

a. Add to both receipts and disbursements of P20,000.

b. Add to receipts of P20,000 and add to ending balance of P20,000.

c. Deduct to both receipts and disbursements of P20,000.

d. Deduct to receipts of P20,000 and deduct to ending balance of P20,000.

15. A collection from a customer during the current month for P2,000,000 was debited in the book at P200,000. This error was discovered and correct in the same month. How would this affect the proof of cash in the book?

a. P1,8000,000 deducted in disbursements, P1,800,0000 deducted in ending balance.

b. P1,8000,000 deducted in disbursements, P1,800,0000 deducted in receipts.

c. P1,8000,000 added in disbursements, P1,800,0000 added in ending balance.

d. No effect

16. After preparing the proof of cash, the adjusted balances of previous and current months cash balances are not equal. How would this be interpreted when cash balance per book is higher by P5,000 than cash balance per bank.

a. Bank balance is correct, no adjustments shall be made.

b. Bank balance is correct, cash shortage is adjusted in book.

c. Book balance is correct, cash overage is adjusted in bank.

d. Book balance is correct, cash overage is adjusted in book.

e. Bank balance is correct, cash overage is adjusted in book.

17. How would the cash collections during the current month used in payment of cash expense on the same day will be treated in proof of cash?

a. added in bank receipts and bank ending balance.

b. deducted in book receipts and added in book ending balance.

c. added in bank receipts and added in bank disbursements.

d. deducted in book receipts and deducted in book ending balance.

18. An NSF check in current period was returned by bank, it was redeposited in the same period. The book recorded the return of check as a reduction in cash receipts while the redeposit is recorded as cash receipts. How would this be treated in proof of cash.

a. no adjustment.

b. deducted in receipts and added in disbursement.

c. added in receipts and added in disbursements.

d. deducted in disbursement and deducted in receipts.

On December 31, 2021, the petty cash fund of Mulan Company has an imprest balance of P30,000 and includes the following items:

Coins

P3,000

Currencies

4,900

Petty cash vouchers:

#5501 Transportation

6,540

#5502 Postage

760

#5503 Miscellaneous

5,500

#5504 Meals

4,320

Check drawn by Mulan Company payable to Cash

2,000

Accommodation Check

2,400

9. How much is the balance of petty cash fund as of December 31, 2021?

a. P12,300

b. P10,300

c. P9,900

d. P7,900

10. How much is the amount of shortage or overage in petty cash fund?

a. P580

b. P2,580

c. P19,700

d. P20,100