Cash-2

The best method of verifying a business's cash balance is to -
1. Prepare a bank reconciliation
2. Call the bank
3. Ask the bookkeeper
4. Prepare a bank reconciliation
Even applying the best cash management techniques will probably not eliminate all cash flow problems for a small business.
1. True
2. False
Which of the following is included in the Cash Category of a balance sheet ?
1. All of the listed answers are correct
2. Currency On Hand
3. Checks To Deposit
4. Balance of Bank Accounts
Even a business making a profit may encounter cash flow problems.
1. True
2. False
Both cash flow and profits are critical to the success of a business.
1. True
2. False
The abbreviation NSF stands for -
1. Non Sufficient Funds
2. Non Surplus Funds
3. No Such Funds
4. None of the listed answers is correct
A business's cash receipts would normally initially be recorded in what journal ?
1. Cash Receipts Journal
2. Cash Payment Journal
3. Petty Cash Journal
4. General Journal
A document used to initially record checks and cash received for a day is a -
1. Deposit Slip
2. Check
3. Bank Reconcilaition
4. Bank Debit Memo
The special fund set up to pay small and unexpected expenditures is called -
1. Petty Cash Fund
2. Emergency Cash Fund
3. Employee Loan Fund
4. Extra Cash Fund
Preparing monthly bank reconciliations is one of the tasks for properly monitoring and controlling cash.
1. True
2. False
In a small business, your bookkeeper should be your main source of internal control.
1. True
2. False
An additional name used to indentify a Cash Forecast is -
1. All of the listed answers are correct
2. None of the listed answers is correct
3. Cash Projection
4. Cash Budget
Which of the following is not a typical cash control ?
1. Recording adjusting entries in the general journal
2. Maintaining separate bank accounts
3. Using prenumbered checks
4. Making all disbursements by check whenever possible
A credit balance in your books for your Cash Account means you owe the bank.
1. True
2. False
A Cash Forecast will not -
1. Guarantee never having a cash shortage
2. Help identify periods when cash might be "tight"
3. Help plan for needed equipment purchases
4. Help identify business or seasonal cash peaks and valleys
Normally, many of the estimated amounts in a Cash Forecast are dependent on the -
1. Sales Estimate
2. Payroll Estimate
3. Inventory Purchases Estimate
4. Equipment Purchases Estimate

Cash-2

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