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Harisenin.com Quiz Day 3

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The short-term, highly liquid investments

that are readily convertible to known amounts of cash and

that so near their maturity is the definition of..........................................

a)

Bank Overdrafts

b)

Restricted Cash

c)

Cash Equivalents

2.

Which of the following is a cash equivalent?

a)

Government Paper

b)

Notes Payable

c)

Certificates of Deposit

3.

The money that is restricted as to its withdrawal or

usage and therefore not available for immediate or general business

use.

a)

Bank Overdraft

b)

Restricted Cash

c)

Cash Equivalent

4.

The representations by management, explicit or otherwise, that are embodied in

the financial statements, which we use to consider the different types of potential

misstatements that may occur are the definition of ......................................

a)

Liquidity

b)

Assertions

c)

Cash accounts

5.

Which of the following is the focus of an audit of cash for most companies?

a)

General Cash Account

b)

Payroll Cash Account

c)

Petty Cash

6.

Which of the following items on a bank reconciliation would require an adjusting entry on the company’s books?

a)

An error by the bank

b)

A bank service charge

c)

interest on account

7.

The objective of performing a proof of cash as auditor is

a)

All deposits in the bank were recorded in the accounting records

b)

All recorded cash disbursements were paid by the government

c)

All recorded cash receipts were charged

8.

The following are the common controls over cash, except................

a)

Segregation of duties

b)

Computerized control totals and edits tests

c)

Perform an overall estimate of depreciation expense

9.

Which of the following is not a basic characteristic of a system of cash control?

a)

Usage of voucher system

b)

Usage of installment system

c)

Combined responsibility for handling and recording cash

10.

Which of the following cycles does not affect cash in bank?

a)

Inventory and warehousing

b)

Capital acquisitions cycle

c)

Payroll and personnel Cycle