Cash-5

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Which of the following is not a record that would probably be used to perform a Bank Reconciliation ?
1. None of the listed answers is correct
2. Deposit Book
3. Check Book
4. Bank Statement
For what forcasting period are you most likely to develop the best cash estimates ?
1. Medium Term
2. All of the listed answers are correct
3. Short Term
4. Long Term
A good cash policy is to not -
1. Maintain a Business Bank Account
2. None of the listed answers is correct
3. Maintain a Separate Payroll Bank Account
4. Use Prenumbered Checks
Estimates used in preparing a Cash Forecast include -
1. Sales Estimates
2. All of the listed answers are correct
3. Analysis of Customer & Supplier Credit Terms
4. Analysis of Historical Financial Statements
Which of the following is a record used to monitor & control cash ?
1. Cash Receipts Journal
2. Check Book
3. Cash Disbursements Journal
4. All of the listed answers are correct
Which of the following statements is true ?
1. The terms Cash Flow & Profits have the same meaning
2. Even a business making a profit may encounter cash flow problems
3. All of the listed answers are correct
4. Good Cash Management will probably eliminate all cash flow problems
The formal record that a bank maintains of it's customer's checks and deposits is called -
1. Deposit Book
2. Check Book
3. None of the listed answers is correct
4. Bank Statement
While preparing a Cash Forecast one needs to be careful not to -
1. Ignore Past Experience & Trends
2. Overstate Estimated Sales
3. All of the listed answers are correct
4. Understate Estimated Costs & Expenses
A Cash Forecast helps to identify -
1. Expected or Estimated Cash Outlays
2. All of the listed answers are correct
3. None of the listed answers is correct
4. Expected or Estimated Cash Receipts
The policies, procedures, activities, and safeguards put in place to protect Cash are called -
1. Cash Management
2. None of the listed answers is correct
3. Cash Budgeting
4. Internal Controls
The most important estimate needed for preparing a Cash Forecast is -
1. Estimated Inventory Purchases
2. Estimated Payroll Expenses
3. Estimated Sales
4. Estimated Equipment Purchases
A "Special" Fund set up to handle small and unexpected expenditures is called -
1. Petty Cash Fund
2. Emergency Cash Fund
3. None of the listed answers is correct
4. Special Cash Fund
A formal document that is used to transfer funds from one business or individual to another business or individual is called -
1. Deposit Slip
2. Check
3. Deposit Book
4. Deposit In Transit
A record that should be prepared each month after receiving the bank statement is -
1. Customer Aging Schedule
2. Supplier Aging Schedule
3. Bank Reconciliation
4. Check Book
The Special Journal used to initially record cash payments is -
1. None of the listed answers is correct
2. Cash Disbursements Journal
3. Cash Receipts Journal
4. General Journal
Which of the following actions would likely improve cash flow ?
1. All of the answers are correct
2. Aggressive Collection Practices
3. Shorten Customer Credit Terms
4. Make more Cash Sales
Which of the following is not normally a document or record that is used to support or verify the Cash Balance ?
1. Customer Invoices
2. Deposit Slips
3. Checks
4. Bank Statements
A fomal record used by many businesses to initially record their cash receipts is called -
1. Cash Receipts Journal
2. Cash Disbursements Journal
3. Cash Ledger
4. General Journal

Cash-5

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