1. Which is a true statement?

   1. Cash and cash equivalents are normally listed as a single cash amount on the balance sheet.
   2. Cash and cash equivalents must be listed separately to obtain a line of credit.
   3. Cash equivalents are listed separately from cash on the balance sheet.
   4. Cash equivalents are listed under compensating balance on the balance sheet.

   2. Which is a false statement?

   1. Both large and small companies must manage cash flow.
   2. Cash equivalents include U.S. Treasury bills, commercial paper, and money market funds.
   3. To receive a line of credit, the bank may require a company to maintain a minimum cash balance.
   4. Large companies are required by law to use an asset managing company.

   3. How are compensating balance requirements normally disclosed?

   1. On the first line of the current assets
   2. In notes to the financial statement
   3. Under the cash equivalent line on a balance sheet
   4. With the line of credit disclosure

   4. Which may banks require for a company to obtain a line of credit?

   1. cash equivalents
   2. commercial paper
   3. compensating balance
   4. bank balance equal to three months cash income

   5. According to the Sarbanes Oxley Act of 2002, who is responsible for acknowledging that they are responsible for maintaining an adequate internal control system?

2. 1. Human resources
   2. All employees
   3. Legal counsel
   4. Management