Cash-4

A document signed by a payor instructing a bank to pay a specified amount -
1. Check
2. Deposit
3. Service Charge
4. Bank Note
The policies and procedures used to protect assets and promote efficiency is -
1. Internal Control System
2. Bookkeeping System
3. Management System
4. Surveilance System
An asset that is cash or easily converted into cash is called a -
1. Liquid Asset
2. Near Cash Asset
3. Current Asset
4. Fixed Asset
A document used to authorize and place an order with a supplier is -
1. Purchase Order
2. Receiving Report
3. Invoice
4. Voucher
An analysis used to explain the difference between the book and bank balance is -
1. Bank Reconciliation
2. Bank Draft
3. Bank Analysis
4. Bank Discrepancy Report
Document used to verify the quanitites and conditions of goods received is -
1. Receiving Report
2. Purchase Order
3. Invoice
4. Exception Report
The extent that a business can impliment internal controls is limited by -
1. Cost-Benefit Principle
2. Affordability Rule
3. Employee Ratio Rule
4. Performance Principle
Outstanding checks are -
1. Deducted from the bank statement's balance
2. Added to the bank statement's balance
3. Added to the book balance of cash
4. Deducted from the book balance of cash
The proper treatment of deposits not recorded by the bank (deposits in transit) -
1. Add them to the bank statement's balance
2. Deduct them from the bank statement's balance
3. Add them to the book balance of cash
4. Deduct them from the book balance of cash
A business making an "excellent" profit -
1. Sometime experiences cash flow problems
2. Never experiences cash flow problems
3. Always experiences cash flow problems
4. None of the listed answers is correct
The proper treatment of a customer's returned check (NSF) is -
1. Deduct the amount from the book balance of cash
2. Add the amount to the book balance of cash
3. Deduct the amount from the bank statement's balance
4. Add the amount to the bank statement's balance
A positive cash flow results when -
1. Cash coming in exceeds cash going out
2. Cash going out exceeds cash coming in
3. Cash coming in equals cash going out
4. Cash balance exceeds accounts receivable balance
Document used to summarize and deposit the daily receipts is -
1. Deposit Slip
2. Bank Statement
3. Check Book
4. General Ledger
Checks written but that have not been processed by the bank are called -
1. Outstanding Checks
2. Checks In Transit
3. Deposits In Transit
4. Pending Checks
The term used for the tool that helps a business analyze its cash needs
1. All the terms listed refer to the tool
2. Cash Flow Forecast
3. Cash Flow Projection
4. Cash Flow Budget
Which of the following is not a good cash management practice ?
1. Pay bills from daily cash receipts
2. Maintain an accurate check book
3. Make all disbursement by check whenever possible
4. Prepare cash forecasts
A record maintained by the bank that lists all deposits and disbursements is -
1. Bank Statement
2. Cash Balance Statement
3. General Ledger Cash Account
4. Cash Journals
The special journal used to record all cash receipts is -
1. Cash Receipts Journal
2. Cash Payments Journal
3. Petty Cash Journal
4. General Journal
Which special journal does not normally record cash transactions ?
1. Sales Journal
2. Cash Receipts Journal
3. Cash Disbursements Journal
4. Payroll Journal
A tool used to help manage the collection of balances owed by customers is -
1. Accounts Receivable Aging Report
2. Accounts Payable Aging Report
3. Cash Disbursements Report
4. Bank Reconciliation
A special fund set up to handle small and unexpected expenditures is -
1. Petty Cash Fund
2. Cash Payments Fund
3. Emergency Fund
4. None of the listed answers is correct
An internal control many small businesses are unable to fully implement is -
1. Segregation of Duties
2. Separate Bank Accounts
3. Good Record Keeping
4. Pre-numbered documents such as checks and invoices
Normally, the first estimate made when preparing a Cash Forecast -
1. Sales Estimate
2. Purchases Estimate
3. Tax Estimate
4. Payroll Estimate

Cash-4

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