Cash and Cash Equivalents / Bank Recon / Proof of Cash

Bank overdrafts that cannot be offset should be

• reported as a deduction from the current asset section.

• reported as a deduction from cash.

• netted against cash and a net cash amount reported.

• reported as a current liability.

Coins, currencies, checks, money orders, money on deposit, and cash funds that are available for unrestricted use in current operations are disclosed in the notes to the financial statements as

• Cash.

• Cash equivalents.

• Investments.

• Accounts receivable.

These are short-term, highly liquid investments that are so near their maturity that they represent insignificant risk of changes in value due to changes in interest rates.

• Cash and Cash equivalents       

• Treasury bills        

• Treasury notes 

• Cash equivalents

The amount reported as "Cash" on a company's statement of financial position normally should exclude

• postdated checks that are payable to the company.

• cash in a payroll account.

• undelivered checks written and signed by the company.

• petty cash.

What amount should Noise Co. report as cash and cash equivalents in its December 31, 20x1 statement of financial position?

• 110,000

• 385,000

• 460,000

• 860,000

The petty cash fund is not replenished and financial statements are prepared on July 31, 20x1. The month-end adjustment to the petty cash fund would not include a

• debit to receivable from custodian for ₱1,800.

• credit to petty cash fund for ₱28,500.

• total debits to various expense accounts for ₱26,700.          

• credit to cash in bank for 28,500.        

In a bank reconciliation, deposits not recorded by the bank are:

• added to the balance according to the bank statement

• deducted from the balance according to the bank statement

• added to the balance according to the depositor’s records

• deducted from the balance according to the depositor’s records

These are deductions made by the bank to the depositor’s bank account but not yet recorded by the depositor.

• Credit memos (CM)

• Debit memos (DM)

• Outstanding checks (OC)

• Deposits in transit (DIT)

Bank statements provide information about all of the following except

• checks cleared during the period.

• NSF checks.

• bank charges for the period.

• errors made by the company.

Sun's adjusted cash in bank balance on December 31, 20x1 is

• 36,125

• 32,345

• 23,410

• 39,420