Professional Documents
Culture Documents
Cash Quiz
Cash Quiz
1. Cash or Cash on Hand and In Banks on the balance sheet may include the
following items:
(1) Currency or cash items on hand
(2) Deposits in foreign countries which are subject to foreign exchange
restrictions
(3) Short-term placements of excess cash which can be preterminated
(4) Postdated checks
(5) Cash set aside for the acquisition or construction of noncurrent assets
(a) 1, 2 and 3 only (c) 1 and 3 only
(b) 2, 3 and 5 only (d) not given C
3. The cash balance reported in the balance sheet normally will not include:
(a) small amounts of cash (petty cash) kept on hand in the office.
(b) checks received from customers and deposited in the bank.
(c) money orders.
m
(d) temporary investments due in one year. D
er as
co
4. Which of the following is not considered cash for financial reporting purposes?
eH w
(a) petty cash funds and change funds (c) coin, currency and available
funds o.
rs e
(b) money order and certified checks (d) postdated checks and IOUs D
ou urc
28 C
vi y re
8. Each of the following measures strengthens internal control over cash receipts
sh
except:
(a) the use of a voucher system.
(b) preparation of a daily listing of all checks received through the mail.
(c) the deposit of cash receipts intact in the bank on a daily basis.
(d) the use of cash registers. A
This study source was downloaded by 100000828284650 from CourseHero.com on 06-20-2021 20:30:28 GMT -05:00
https://www.coursehero.com/file/50833759/Cash-Quizdoc/
10.The following statements relate to the petty cash fund. Which statement is true?
(a) The amount of coins and currency in the petty cash fund is the same before
the fund is reimbursed as it is afterwards.
(b) Entries to record the replenishment of the imprest petty cash fund result in
debit to various expense accounts and a credit to the petty cash funds.
(c) At any time, the sum of the cash in the petty cash fund and the total petty
cash vouchers should equal the amount for which the imprest petty cash fund
was established.
(d) Under the imprest petty cash system, it is not necessary to adjust
unreplenished petty cash expenses at end of the year.
C
11.Expenses paid out of the petty cash is recorded under two systems of accounting
for petty cash:
Imprest system Fluctuating system
m
(a) cash is debited.
er as
12.In reimbursing the petty cash fund, which of the following is true?
(c) petty cash is credited.
co
eH w
(b) petty cash is debited. (d) expense accounts are debited.
D
o.
rs e
(a) be sure that all cash receipts are being used efficiently.
(b) assist in determining if cash projects have been correct.
(c) be sure products are not being sold below cost.
(d) identify differences between cash balances reported by the company and its
ed d
bank. D
ar stu
(c) all of the reconciling items shown on a bank reconciliation must be entered in
Th
16.The reconciling item in bank reconciliation that will result in an adjusting entry by
the depositor is:
(a) outstanding checks (c) bank error
(b) deposit in transit (d) bank service charges D
This study source was downloaded by 100000828284650 from CourseHero.com on 06-20-2021 20:30:28 GMT -05:00
https://www.coursehero.com/file/50833759/Cash-Quizdoc/
19.On Dream Company’s bank reconciliation at the end of May, the amount of P500 is
deducted from the bank statement balance as a step in determining the adjusted
cash in bank balance that should appear on the balance sheet. A possible
explanation for this P500 deduction is:
(a) a check deposited by Dream has been returned by the bank marked NSF.
(b) the bank has collected a note for the account of the company.
(c) a deposit in transit in the amount of P500.
(d) the bank erroneously credited Great Company’s deposit on Dream Company’s
bank statement. D
21.Blue Company has the following cash balances at December 31, 2002:
Undeposited coins and currency P 35,000
m
Unrestricted demand deposits 1,450,000
er as
Company checks written (and deducted from the demand
deposits amount) but not scheduled to be delivered
co
eH w
until January 6, 2003 180,000
Time deposits restricted for use (expected use in 2003) 3,000,000
o.
The unrestricted demand deposits included P150,000 compensating balance but
rs e
not legally restricted as to withdrawal. How much should Blue report as cash in its
ou urc
22.The balance sheet of Mall Company as of December 31, 2002 showed the cash
aC s
23.A cash count on the morning of January 2, 2002 showed the following items in the
petty cash box of Tray Corporation:
Currencies and coins counted P12,560
Envelope containing contributions to employee’s party 90,000
Approved and paid petty cash vouchers 14,500
Employee’s IOUs 180,000
Company check for fund replenishment 92,000
The petty cash fund was established for an amount of P300,000. What is the
correct amount of petty cash on the balance sheet as of December 31, 2002?
(a) P300,000 (b) P12,560 (c) P104,560 (d) P13,500 C
24.On April 1, 2002, Mighty Company established an imprest petty cash fund for
P10,000 by writing a check drawn against its general checking account. On April
30, the fund contained the following:
Currency and coins P3,000
Receipts for office supplies 4,000
This study source was downloaded by 100000828284650 from CourseHero.com on 06-20-2021 20:30:28 GMT -05:00
Receipts for postage (still unused) 2,000
Receipts for transportation 600
https://www.coursehero.com/file/50833759/Cash-Quizdoc/
On April 25, the company wrote a check to replenish the fund. What is the
amount of replenishment under the imprest fund system?
(a) P7,000 (b) P6,600 (c) P10,000 (d) P3,000 A
25.If a petty cash fund is established in the amount of P250, and contains P150 in
cash and P95 in receipts for disbursements when it is replenished, the journal
entry to record replenishment should include credit(s) to the following account(s):
(a) petty cash, P75 (c) cash, P95; cash short and over, P5
(b) petty cash, P100 (d) cash, P100 D
27.The cash account of Isle Corporation has a balance of P96,000 on December 31,
m
2002. Your review of the cash transactions recorded in December revealed the
following:
er as
Cash receipts included customer’s checks for P4,000 dated
co
eH w
January 10, 2003.
Cash disbursements included:
o.
Check of P10,000 payable to Ace Company. The check, dated December
rs e
23,
ou urc
The current assets of Multi Company on December 31, 2001 include the following:
ed d
B. The petty cash fund consists of the following items on December 31, 2001:
Currency and coins, P2,800.
Employees’ vales, P2,000.
Currency in envelope marked “collections for birthday party”, P1,000.
Unreplenished petty cash vouchers, P2,000.
Check drawn payable to petty cashier, P2,200.
C. Included among the checks in payment of accounts payable drawn by Multi
against its current account and recorded in December 2001 are:
Check written and dated December 22, 2001 and delivered to payee on
January 5, 2002, P10,000.
Check written December 26, 2001 and dated January 21, 2002, delivered to
This study source was downloaded by 100000828284650 from CourseHero.com on 06-20-2021 20:30:28 GMT -05:00
payee on December 26, 2001, P15,000.
https://www.coursehero.com/file/50833759/Cash-Quizdoc/
28.How much is the adjusted cash on hand at December 31, 2001?
(a) P40,000 (b) P1,328,000 (c) P5,000 (d) P225,000A
29.How much is the adjusted petty cash fund balance at December 31, 2001?
(a) P40,000 (b) P1,328,000 (c) P5,000 (d) P225,000C
30.How much is the adjusted cash in bank balance at December 31, 2001?
(a) P40,000 (b) P1,328,000 (c) P5,000 (d) P225,000D
33.Cure Company’s newly hired assistant prepared the following bank reconciliation
on March 31, 2002:
Book balance P1,405,000
Add: March 31 deposit P 750,000
Collection of note 2,500,000
Interest on note 150,000 3,400,000
Total P4,805,000
Less: Care Company’s deposit to
our account P1,100,000
Bank service charge 45,000 1,145,000
m
Adjusted book balance P3,660,000
Book balance
er as
Add: Error on check no. 123
P5,630,000
45,000
co
eH w
Total P5,675,000
Less: Preauthorized payments for
o.
light and water bills P 205,000
rs e
submitted directly to the bank. The correct cash in bank balance is:
vi y re
34.If the month-end bank statement shows a balance of P36,000, outstanding checks
ed d
are P12,000, a deposit of P4,000 was in transit at month-end, and a check for
ar stu
P500 was erroneously charged by the bank against the account, the correct
balance in the bank account at month-end is:
(a) P27,500 (b) P28,500 (c) P20,500 (d) P43,500 B
is
Th
Apache Company provides the following information for the purpose of reconciling
the cash balance per book with balance per bank statement on December 31,
2001.
The bank statement showed a balance of P200,000 on December 31.
Outstanding checks as of December 31 amounted to P50,000, including a
P10,000 certified check.
Deposit in transit on December 31 was P20,000.
During December, the bank charged back NSF checks of P15,000, of which
P5,000 had been redeposited and cleared by December 27.
On December 23, the bank erroneously credited the account of Apache for
This study source was downloaded by 100000828284650 from CourseHero.com on 06-20-2021 20:30:28 GMT -05:00
P30,000 representing proceeds of loan granted to another company.
https://www.coursehero.com/file/50833759/Cash-Quizdoc/
During December, the proceeds from notes collected by the bank for Apache
amounted to P75,000, net of service charge of P2,000.
36.What is the cash balance to be shown on the balance sheet on December 31,
2001?
(a) P140,000 (b) P85,000 (c) P150,000 (d) P180,000C
37.What is the cash balance per Apache Company’s ledger on December 31, 2001?
(a) P200,000 (b) P85,000 (c) P150,000 (d) P180,000B
m
Service charge, recorded after receiving
er as
the bank statement
Bored recorded a P374 check received from
45 60
co
eH w
a customer in June as P347
o.
38.The corrected balance per bank on June 30 is:
rs e
This study source was downloaded by 100000828284650 from CourseHero.com on 06-20-2021 20:30:28 GMT -05:00
https://www.coursehero.com/file/50833759/Cash-Quizdoc/