QUESTION 1 Which of the following statements is correct about the presentation of cash? a. Cash is the most liquid and therefore the first asset listed on the balance sheet. Ob. Cash includes cash on hand, cash in the bank, and cash equivalents. Oc Cash is included on the balance sheet as a current asset. Od. All of the above are true. QUESTION 2 Receipts from cash sales of $5,700 were recorded incorrectly by the company accountant as $7,500. How should the $1.800 difference be accounted for on the bank reconciliation? a. As an addition to the balance per books b. As an addition to the balance per bank. O c. As a deduction from the balance por books. d. As a deduction from the balance per bank. QUESTION 3 The amount of an outstanding check is included on the bank reconciliation as an) a. addition to the cash balance per bank Ob deduction from the cash balance per bank c. addition to the cash balance per book. d. deduction from the cash balance per book. QUESTION 4 does Select the option which best completes the blanks in the following statement: A non-sufficient tund check is when the not have enough cash in its account to cover the payment of a written check, and the resulting adjustment on the bank reconciliation is a to/from the balance per books. a. customer, subtraction b.customer; addition c. company, subtraction d. company, addition QUESTIONS Which of the following would be deducted from the cash balance per books on a bank reconciliation? a. Outstanding checks b. Notes collected by the bank c. Deposits in transit d. Service charges QUESTION 6 When merchandise sold is assumed to be in the order in which the expenditures were made, the inventory costing method is called (Hint read choices carfully) a. average cost b.first-in-, first-out first in, last-out dlastin, first out