Cash-5

A fomal record used by many businesses to initially record their cash receipts is called -
1. Cash Receipts Journal
2. General Journal
3. Cash Disbursements Journal
4. Cash Ledger
A Cash Forecast helps to identify -
1. All of the listed answers are correct
2. Expected or Estimated Cash Receipts
3. Expected or Estimated Cash Outlays
4. None of the listed answers is correct
The most important estimate needed for preparing a Cash Forecast is -
1. Estimated Sales
2. Estimated Inventory Purchases
3. Estimated Payroll Expenses
4. Estimated Equipment Purchases
Which of the following statements is true ?
1. Even a business making a profit may encounter cash flow problems
2. Good Cash Management will probably eliminate all cash flow problems
3. The terms Cash Flow & Profits have the same meaning
4. All of the listed answers are correct
Which of the following actions would likely improve cash flow ?
1. All of the answers are correct
2. Make more Cash Sales
3. Aggressive Collection Practices
4. Shorten Customer Credit Terms
The Special Journal used to initially record cash payments is -
1. Cash Disbursements Journal
2. General Journal
3. Cash Receipts Journal
4. None of the listed answers is correct
Which of the following is a record used to monitor & control cash ?
1. All of the listed answers are correct
2. Cash Disbursements Journal
3. Cash Receipts Journal
4. Check Book
Which of the following is not normally a document or record that is used to support or verify the Cash Balance ?
1. Customer Invoices
2. Checks
3. Deposit Slips
4. Bank Statements
A "Special" Fund set up to handle small and unexpected expenditures is called -
1. Petty Cash Fund
2. Special Cash Fund
3. Emergency Cash Fund
4. None of the listed answers is correct
A formal document that is used to transfer funds from one business or individual to another business or individual is called -
1. Check
2. Deposit Slip
3. Deposit In Transit
4. Deposit Book
Which of the following is not a record that would probably be used to perform a Bank Reconciliation ?
1. None of the listed answers is correct
2. Check Book
3. Deposit Book
4. Bank Statement
For what forcasting period are you most likely to develop the best cash estimates ?
1. Short Term
2. Medium Term
3. Long Term
4. All of the listed answers are correct
Estimates used in preparing a Cash Forecast include -
1. All of the listed answers are correct
2. Sales Estimates
3. Analysis of Historical Financial Statements
4. Analysis of Customer & Supplier Credit Terms
While preparing a Cash Forecast one needs to be careful not to -
1. All of the listed answers are correct
2. Overstate Estimated Sales
3. Understate Estimated Costs & Expenses
4. Ignore Past Experience & Trends
The formal record that a bank maintains of it's customer's checks and deposits is called -
1. Bank Statement
2. Check Book
3. Deposit Book
4. None of the listed answers is correct
A good cash policy is to not -
1. None of the listed answers is correct
2. Maintain a Business Bank Account
3. Use Prenumbered Checks
4. Maintain a Separate Payroll Bank Account
A record that should be prepared each month after receiving the bank statement is -
1. Bank Reconciliation
2. Customer Aging Schedule
3. Check Book
4. Supplier Aging Schedule
The policies, procedures, activities, and safeguards put in place to protect Cash are called -
1. Internal Controls
2. Cash Budgeting
3. Cash Management
4. None of the listed answers is correct

Cash-5

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