1. Which of the following should not be considered cash?

a.Petty cash fund

b.Money order

c.Coin and currency

d.IOU

2. Which of the following is usually considered cash?

a.Certificate of deposit

b.Checking account

c.Money market certificate

d.Postdated check

3. Which of the following should not be included in cash?

a.Travel cash advance

b.Certified check

c.Personal check

d.Manager check

4. All of the following may be included in cash, except

a.Currency

b.Money market instrument

c.Checking account balance

d.Saving account balance

5. Technically, cash may not include

a.Foreign currency

b.Money order

c.Restricted cash

d.Undeposited customer check

7.All of the following can be classified as cash and cash equivalents, except

a.Redeemable preference shares due in 60 days

b.Commercial papers due for repayment in 90 days

c.Equity investments

d.A bank overdraft

8.Cash equivalents do not include

a.Money market funds

b.High grade marketable equity investments

c.BSP treasury bills

d.Commercial papers

9.The internal control feature specific to petty cash is

a.Separation of dutiesc. Proper authorization

b.Assignment of responsibilityd. Imprest system

10.A cash over and short account

a.Is not generally accepted.

b.Is debited when the petty cash fund proves out over.

c.Is debited when the petty cash fund proves out short.

d.Is a contra account to cash

11.Petty cash fund is

a.Separately classified as current asset

b.Money kept on hand for making minor disbursements of coin and currency rather

than by writing checks

c.Set aside for the payment of payroll

d.Restricted cash

12.A bank reconciliation is

a.A financial statement that lists all of the bank account balances of an entity.

b.A merger of two banks that previously were competitors.

c.A statement sent by the bank to depositor on a monthly basis.

d.A schedule that accounts for the differences between cash balance shown on the bank statement and the cash balance shown on the general ledger.

13.Which of the following items must be added to the cash balance per ledger in preparing a bank reconciliation which ends with adjusted cash balance?

a.Note receivable collected by bank in favor of the depositor and credited to theaccount of the depositor

b. NSF customer check

c.Service charge

d.Erroneous bank debit

14.Which of the following would be added to the balance per bank statement to arrive at the correct cash balance?

a.Outstanding check

b.Bank service charge

c.Deposit in transit

d.A customer mote collected by the bank on behalf of the depositor

15.Which of the following must be deducted from the bank statement balance in preparing a bank reconciliation which ends with adjusted cash balance?

a. Deposit in transit

b.Outstanding check

c.Reduction of loan charged to the account of the depositor

d.Certified check

16.If the balance shown in the bank statement is less than the correct cash balance and neither the entity nor the bank has made any errors, there must be

a.Deposits credited by the bank but not yet recorded by the depositor

b.Outstanding checks

c.Deposits in transit

d.Bank charges not yet recorded by the depositor

17.If the cash balance shown in the accounting record is less than the correct cashbalance and neither the entity nor the bank has made any errors, there must be

a. Deposits credited by the bank but not yet recorded by the depositor

b.Deposits in transit

c.Outstanding checks

d.Bank charges not yet recorded by the depositor

18.Bank reconciliations are normally prepared on a monthly basis to identifyadjustments needed in the depositor's records and to identify bank errors.

19.Adjustments on the part of the depositor should be recorded for

a. Bank errors, outstanding checks and deposits in transit.

b.All items except bank errors, outstanding checks and deposits in transit.

c.Book errors, bank errors, deposits in transit and outstanding checks.

d.Outstanding checks and deposits in transit.

20.Bank statements provide information about all of the following, except

a.Checks cleared during the period

b.NSF checks

c.Bank charges for the period

d.Errors made-by the depositor

21.Which statement in relation to a certified check is not true?

a.A certified check is a liability of the bank certifying it.

b.A certified check will be accepted by many persons who would not otherwise accept a personal check.

c.A certified check is one drawn by a bank upon itself.

d.A certified check should not be included in the outstanding checks.

22.Which statement in relation to bank reconciliation is true?

a.Bank service charge will cause the cash balance per ledger to be higher than that reported by the bank, all other things being equal.

b.Credit memos will cause the cash balance per ledger to be higher than that reported by the bank, all other things being equal.

c.Outstanding checks will cause the cash balance per ledger to be greater than the balance reported by the bank, all other things being equal.

d.The cash amount reported in the statement of financial position must be the balance reported in the bank statement.