The items reported in the Cash account on the balance sheet must be acceptable to a bank for deposit and free from restrictions for use in satisfying current debts.

true   Correct or    falseIncorrect

 

The Cash account is listed on the balance sheet in the current asset section, and all cash items are normally combined and reported as a single figure.

correct   Correct or    incorrectIncorrect

 

Companies may legally use the "float," even to the extent of writing checks when no money is in an account.

true   Incorrect or    falseCorrect

 

The accounting department should have exclusive control over the functions of cash collection, bank deposits, recording appropriate journal entries, and preparing the periodic bank reconciliation.

true   Incorrect or    falseCorrect

 

Which of the following items would be subtracted from the balance per bank statement in adjusting to the correct adjusted cash balance?

outstanding checks    Correct or    NSF checksIncorrect

 

The reconciliation of the cash balance per company records to the correct adjusted cash balance would indicate the need for journal entries.

true   Correct or    falseIncorrect

 

Monthly bank service charges are subtracted in the reconciliation of a certain "amount" to the correct adjusted cash balance. What is the "amount" in question?

ending balance per bank statement   Incorrect or    ending balance per company recordsCorrect

 

The original amount of a petty cash fund should be equal to cash remaining in the fund plus:

cash short and over   Incorrect or    petty cash receiptsCorrect

 

The replenishment of a petty cash fund involves a credit to which of the following accounts?

Cash   Correct or    Petty CashIncorrect

 

The initial recording of trading securities is at cost, including brokerage fees.

correct   Correct or    incorrectIncorrect

 

Only decreases in value are recognized for trading securities.

true   Incorrect or    falseCorrect