Chapter 6 Acc II Wild Theory Review

_______________ refers to a company’s ability to pay short term obligations.

• Solvency

• Debt ratio

• Liquidity

• Days's Sales Uncollected

In the case of a cash shortage - how do we handle cash short and over?

• Credit Cash Short and Over

• Debit Cash Short and Over

Real Estate is the most liquid asset.

• True

• False

Federal Act that requires managers and auditors document and certify their system of internal controls.

• TAX Act

• SOX Act

• SAX Act

• REX Act

Cash is the most liquid asset.

• True

• False

What form is used to determine the difference between the book's account balance and the bank's account balance?

• Petty Cash Report

• Bank Statement

• Bank Reconciliation

• Voucher

This is the entry to decrease petty cash fund.

• Debit Petty Cash - Credit Cash

• Debit Cash - Credit Petty Cash

Debit Petty Cash and Credit Cash is the transaction for which one of the following.

• reporting a cash shortage

• establishing petty cash fund

• decreasing petty cash fund

• reporting a cash overage

All cash disursements should be done with a debit card or credit card.

• True

• False

Receipts should be deposited immediately.

• True

• False