QUESTION 4 Requiring that all expenditures be made by check is one of the solutions to control _______.

A. Cash Disbursements

B. Cash Receipts by Mail

C. Cash Equivalents

D. Cash over and short

QUESTION 5 The two goals of proper cash management are (1) plan cash receipts to meet cash payments when due, and (2) plan expenditures.

True False

QUESTION 6 When a petty cash fund is first established and reimbursed, the journal entries to record the transactions will debit the cash account.

True False

QUESTION 7 The bank statement balance may differ from the depositors book balance for the following reason:

A. Deductions for uncollectible items for services

B. Additions for collections and for interest

C. Errors

D. All of the above

QUESTION 9 Cash equivalents:

A. Include savings accounts

B. Include checking accounts

C. Are readily converted to a known cash amount

D. Include time deposits

QUESTION 10 Preparing a bank reconciliation on a monthly basis is an example of:

A. Establishing responsibility

B. Separation of duties

C. Protecting assets by proving accuracy of cash records

D. Poor internal control