Cash-5

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

Cash-5

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