Question 1

Which of these is not an essential feature of the imprest petty cash system?

Accepted Answer

A) Deciding on a fixed sum that becomes the imprest amount or 'float' 
B) Several people being authorised to reimburse expenses 
C) Cash in the fund together with vouchers always equalling the imprest amount 
D) Replenishment of the fund for the exact amount spent in the period 
A) Deciding on a fixed sum that becomes the imprest amount or 'float' 
B) Several people being authorised to reimburse expenses 
C) Cash in the fund together with vouchers always equalling the imprest amount 
D) Replenishment of the fund for the exact amount spent in the period B

Question 2

The statement relating to a cash budget that is true is:

Accepted Answer

A) It is a statement of expected income and expenses 
B) Non-cash items such as depreciation are included 
C) It is usually prepared on a weekly basis 
D) The shorter the time period involved the easier it is to predict future cash flows 
A) It is a statement of expected income and expenses 
B) Non-cash items such as depreciation are included 
C) It is usually prepared on a weekly basis 
D) The shorter the time period involved the easier it is to predict future cash flows D

Question 3

If the cash register tape at the end of the shift shows that the total sales recorded are $1,499 but the cash in the register is $1,425 the Cash Short and Over account is debited/credited with the difference of $74.

Accepted Answer

debited

Question 4

Kathryn's account is not in overdraft.When preparing the bank reconciliation she found that the bank had incorrectly debited her account with $120.The proper procedure is to:

Accepted Answer

A) Deduct $120 from the bank balance in the general ledger and notify the bank 
B) Deduct $120 from the bank balance in the general ledger 
C) Add $120 to the bank statement balance in the bank reconciliation and notify the bank 
D) Do nothing as the bank will adjust the error when it balances. 
A) Deduct $120 from the bank balance in the general ledger and notify the bank 
B) Deduct $120 from the bank balance in the general ledger 
C) Add $120 to the bank statement balance in the bank reconciliation and notify the bank 
D) Do nothing as the bank will adjust the error when it balances.

Question 5

The municipality of Greenvale received its monthly bank statement showing a balance of $27,629 Cr at 31 January.On this date cash received from ratepayers and not yet deposited at the bank totalled $857 and outstanding cheques were $4,321.The amount to appear as cash at bank on the 31 January balance sheet is:

Accepted Answer

A) $22,451 
B) $28,486 
C) $31,093 
D) $24,165 
A) $22,451 
B) $28,486 
C) $31,093 
D) $24,165

Question 6

Which statement relating to dishonoured cheques is true?

Accepted Answer

A) They are cheques from debtors deposited into the firm's bank account but not paid by the drawer's bank due to lack of funds or for other reasons 
B) They can be adjusted for by making a negative entry in the sales journal 
C) They must be listed in the bank reconciliation 
D) They appear as credits on the bank statement 
A) They are cheques from debtors deposited into the firm's bank account but not paid by the drawer's bank due to lack of funds or for other reasons 
B) They can be adjusted for by making a negative entry in the sales journal 
C) They must be listed in the bank reconciliation 
D) They appear as credits on the bank statement

Question 7

The deposit column of Jeremy Company's bank statement shows a direct credit of $1,000.Assuming the account is not in overdraft,when reconciling the bank account,this amount will be:

Accepted Answer

A) Deducted from the bank statement balance in the reconciliation 
B) Added to the bank statement balance in the reconciliation 
C) Deducted from the general ledger bank balance 
D) Added to the general ledger bank balance 
A) Deducted from the bank statement balance in the reconciliation 
B) Added to the bank statement balance in the reconciliation 
C) Deducted from the general ledger bank balance 
D) Added to the general ledger bank balance

Question 8

A cash budget measures?

Accepted Answer

A) Estimated liquidity 
B) Estimated profitability 
C) Estimated working capital 
D) Estimated financial position 
A) Estimated liquidity 
B) Estimated profitability 
C) Estimated working capital 
D) Estimated financial position

Question 9

The ability of an entity to pay its debts as and when they fall due is known as s________________.

Accepted Answer

The answer of The ability of an entity to pay...

Question 10

A c____________ b_____________ is a report which projects future cash receipts and payments over time.

Accepted Answer

The answer of A c____________ b_____________ is a report which...

Question 11

The _________ __________ fund is used to make cash payments for minor expenditures such as postage stamps,coffee and fares.

Accepted Answer

The answer of The _________ __________ fund is used to...

Question 12

Becker Carpets makes all sales on credit with 50% of the payment being received in the month of sale,40% in the month following sale and the remaining 10% in the subsequent month. Budgeted sales are as follows
$\begin{array} { l l } \text { January } & \$ 100000 \ \text { February } & \$ 140000 \ \text { March } & \$ 120000 \end{array}$
The budgeted balance of debtors at 31 March is:
a. $\$ 14000$
b. $\$ 60000$
c. $\$ 74000$
d. $\$ 120,000$

Accepted Answer

The answer of Becker Carpets makes all sales on credit...

Question 13

When reconciling the ledger with the bank statement assuming a positive bank balance)a returned dishonoured)cheque should be:

Accepted Answer

A) Added to the bank statement balance in the reconciliation 
B) Subtracted from the general ledger bank balance 
C) Subtracted from the bank statement balance 
D) Added to the general ledger bank balance 
A) Added to the bank statement balance in the reconciliation 
B) Subtracted from the general ledger bank balance 
C) Subtracted from the bank statement balance 
D) Added to the general ledger bank balance

Question 14

Which of these does not represent proper internal control of cash receipts?

Accepted Answer

A) Daily banking of receipts 
B) Two people opening the mail 
C) Paying accounts directly out of the cash register 
D) Balancing the cash register after each employees' shift 
A) Daily banking of receipts 
B) Two people opening the mail 
C) Paying accounts directly out of the cash register 
D) Balancing the cash register after each employees' shift

Question 15

The cornerstone of the internal control of cash is:

Accepted Answer

A) The bank reconciliation 
B) A strong safe 
C) A petty cash system 
D) The double entry accounting system 
A) The bank reconciliation 
B) A strong safe 
C) A petty cash system 
D) The double entry accounting system

Question 16

Which of these is not included in the definition of cash?

Accepted Answer

A) Bills receivable 
B) EFTPOS transactions 
C) Petty cash 
D) Cheque 
A) Bills receivable 
B) EFTPOS transactions 
C) Petty cash 
D) Cheque

Question 17

If the petty cash fund was not reimbursed at the time the financial statements were prepared:

Accepted Answer

A) Expenses would be understated and equity overstated 
B) Petty cash asset would be overstated and expenses understated 
C) Petty cash expenses would be overstated and bank would be understated 
D) Expenses would be overstated and petty cash asset would be understated 
A) Expenses would be understated and equity overstated 
B) Petty cash asset would be overstated and expenses understated 
C) Petty cash expenses would be overstated and bank would be understated 
D) Expenses would be overstated and petty cash asset would be understated

Question 18

The entry to replenish the petty cash fund at the end of the period is to debit/credit)_________ each of the various expense accounts and to debit/credit)_________ the bank account.

Accepted Answer

The answer of The entry to replenish the petty cash...

Question 19

The ratio that measures solvency by relating cash flows from operating activities to total liabilities is the:

Accepted Answer

A) gearing ratio 
B) short-term cash flow adequacy ratio 
C) cash flow adequacy ratio 
D) turnover of cash flow ratio 
A) gearing ratio 
B) short-term cash flow adequacy ratio 
C) cash flow adequacy ratio 
D) turnover of cash flow ratio

Question 20

The statement listing the differences between the ledger bank balance and the balance on the bank statement is called the b_______ r__________________ statement.

Accepted Answer

The answer of The statement listing the differences between the...

Exam 10: Cash Management and Internal Control

Which of these is not an essential feature of the imprest petty cash system?

The statement relating to a cash budget that is true is:

If the cash register tape at the end of the shift shows that the total sales recorded are $1,499 but the cash in the register is $1,425 the Cash Short and Over account is debited/credited with the difference of $74.

Kathryn's account is not in overdraft.When preparing the bank reconciliation she found that the bank had incorrectly debited her account with $120.The proper procedure is to:

Which statement relating to dishonoured cheques is true?

The deposit column of Jeremy Company's bank statement shows a direct credit of $1,000.Assuming the account is not in overdraft,when reconciling the bank account,this amount will be:

A cash budget measures?

The ability of an entity to pay its debts as and when they fall due is known as s________________.

A c____________ b_____________ is a report which projects future cash receipts and payments over time.

The _________ __________ fund is used to make cash payments for minor expenditures such as postage stamps,coffee and fares.

When reconciling the ledger with the bank statement assuming a positive bank balance)a returned dishonoured)cheque should be:

Which of these does not represent proper internal control of cash receipts?

The cornerstone of the internal control of cash is:

Which of these is not included in the definition of cash?

If the petty cash fund was not reimbursed at the time the financial statements were prepared:

The entry to replenish the petty cash fund at the end of the period is to debit/credit)_________ each of the various expense accounts and to debit/credit)_________ the bank account.

The ratio that measures solvency by relating cash flows from operating activities to total liabilities is the:

The statement listing the differences between the ledger bank balance and the balance on the bank statement is called the b_______ r__________________ statement.

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis,profitability Analysis and Capital Budgeting

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Liabilities

Analysis and Interpretation of Financial Statements

Filters

A c b_ is a report which projects future cash receipts and payments over time.

The _ __ fund is used to make cash payments for minor expenditures such as postage stamps,coffee and fares.

The entry to replenish the petty cash fund at the end of the period is to debit/credit)_ each of the various expense accounts and to debit/credit)_ the bank account.

The statement listing the differences between the ledger bank balance and the balance on the bank statement is called the b_ r____________ statement.