The proper treatment of a customer's returned check (NSF) is -
- Deduct the amount from the book balance of cash
- Deduct the amount from the bank statement's balance
- Add the amount to the book balance of cash
- Add the amount to the bank statement's balance
A special fund set up to handle small and unexpected expenditures is -
- Cash Payments Fund
- None of the listed answers is correct
- Emergency Fund
- Petty Cash Fund
Outstanding checks are -
- Deducted from the book balance of cash
- Deducted from the bank statement's balance
- Added to the bank statement's balance
- Added to the book balance of cash
An internal control many small businesses are unable to fully implement is -
- Separate Bank Accounts
- Segregation of Duties
- Pre-numbered documents such as checks and invoices
- Good Record Keeping
An asset that is cash or easily converted into cash is called a -
- Near Cash Asset
- Liquid Asset
- Current Asset
- Fixed Asset
An analysis used to explain the difference between the book and bank balance is -
- Bank Reconciliation
- Bank Analysis
- Bank Draft
- Bank Discrepancy Report
The proper treatment of deposits not recorded by the bank (deposits in transit) -
- Deduct them from the bank statement's balance
- Add them to the book balance of cash
- Deduct them from the book balance of cash
- Add them to the bank statement's balance
Document used to verify the quanitites and conditions of goods received is -
- Invoice
- Purchase Order
- Exception Report
- Receiving Report
The policies and procedures used to protect assets and promote efficiency is -
- Bookkeeping System
- Internal Control System
- Surveilance System
- Management System
A record maintained by the bank that lists all deposits and disbursements is -
- Cash Journals
- General Ledger Cash Account
- Bank Statement
- Cash Balance Statement
A business making an "excellent" profit -
- Sometime experiences cash flow problems
- Always experiences cash flow problems
- Never experiences cash flow problems
- None of the listed answers is correct
Normally, the first estimate made when preparing a Cash Forecast -
- Tax Estimate
- Purchases Estimate
- Payroll Estimate
- Sales Estimate
The term used for the tool that helps a business analyze its cash needs
- Cash Flow Projection
- Cash Flow Forecast
- Cash Flow Budget
- All the terms listed refer to the tool
The special journal used to record all cash receipts is -
- Cash Receipts Journal
- Petty Cash Journal
- Cash Payments Journal
- General Journal
Which special journal does not normally record cash transactions ?
- Sales Journal
- Cash Receipts Journal
- Cash Disbursements Journal
- Payroll Journal
Which of the following is not a good cash management practice ?
- Prepare cash forecasts
- Maintain an accurate check book
- Pay bills from daily cash receipts
- Make all disbursement by check whenever possible
A tool used to help manage the collection of balances owed by customers is -
- Accounts Receivable Aging Report
- Bank Reconciliation
- Accounts Payable Aging Report
- Cash Disbursements Report
A document used to authorize and place an order with a supplier is -
- Voucher
- Purchase Order
- Receiving Report
- Invoice
A document signed by a payor instructing a bank to pay a specified amount -
- Service Charge
- Bank Note
- Deposit
- Check
Document used to summarize and deposit the daily receipts is -
- Bank Statement
- General Ledger
- Check Book
- Deposit Slip
Checks written but that have not been processed by the bank are called -
- Deposits In Transit
- Pending Checks
- Outstanding Checks
- Checks In Transit
The extent that a business can impliment internal controls is limited by -
- Affordability Rule
- Cost-Benefit Principle
- Employee Ratio Rule
- Performance Principle
A positive cash flow results when -
- Cash coming in exceeds cash going out
- Cash balance exceeds accounts receivable balance
- Cash going out exceeds cash coming in
- Cash coming in equals cash going out