MODULE 1: Cash and Cash Equivalents

RELATED STANDARD: PAS 1 – Presentation of Financial Statements, PAS 7

– Statement of Cash Flows

INTRODUCTION
This module focuses on the accounting and reporting of cash and cash
equivalents. Cash and Cash Equivalents' is an asset that appears on the
statement of financial position of a business and includes currency (coins and
bank notes) held by a business (in hand and in bank accounts) and cash
equivalents.
In this chapter, the reader will learn how to identify cash and cash
equivalents. Also, they will be able to learn reconciling the cash records of the
book of the company and the bank.

Learning Objectives:
1. Define cash and identify the items that can be included in the “Cash and
Cash Equivalents” classification.
2. Understand the accounting for petty cash funds and cash
shortages/overages.
3. Understand the basic internal controls for cash.
4. Prepare a bank reconciliation.
5. Prepare a proof of cash.

 Definition of Terms
 Cash – It comprises cash on hand and demand deposits.
 Cash equivalents – These are short-term, highly liquid investments that
are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value.

I. Cash and Cash Equivalents

 Classification of cash and cash equivalents

 Current assets include cash or a cash equivalent unless the same is
restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.
 For an item of cash and cash equivalent to be classified as current assets,
it should be unrestricted in use. Otherwise, it is classified as noncurrent
asset.

 Cash items
a. Cash on hand – Undeposited collections of currency and checks such as
bills and coins, customer’s checks, manager’s checks, traveler’s checks,
bank drafts and money order.
b. Cash in bank – Demand deposits such as savings account and checking
account.
c. Cash fund – Fund set aside for current operation such as petty cash fund,
payroll fund, dividend fund, interest fund, tax fund, revolving fund and
change fund.

 Cash equivalents
 An investment normally qualifies as a cash equivalent only when it has a
short maturity of, say, three months or less from the date of acquisition.
 Equity investments are excluded from cash equivalents unless they are, in
substance, cash equivalents, for example in the case of preferred shares

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acquired within a short period of their maturity and with a specified

redemption date.
 Examples of cash equivalents:
a. Treasury bill
b. Short-term time deposit
c. Money market
d. Commercial paper
Note: On acquisition date, maturity of the preceding instruments must be
3 months or less.

 Various considerations for cash and cash equivalents

1. Foreign currency
- Cash in foreign currency should be translated to Philippine pesos using
the current exchange rate.
- In the statement of financial position, foreign currencies should be
translated based on the exchange rates on the reporting period.
2. Cash in bank experiencing financial difficulty or bankruptcy
- Cash in bank should be written down to estimated realizable value.
3. Cash fund for noncurrent purpose
- The cash fund is presented as noncurrent asset and classified as long-
term investment.
- Examples are sinking fund, preference share redemption fund,
contingent fund, insurance fund, fund for acquisition of PPE.
- Cash fund set aside for payment of obligation should be presented in
the statement of financial position parallel to the related liability. If the
sinking fund is for a 5-year bond, then the fund is classified as
noncurrent asset. Conversely, if the bond will mature in 12 months or
less, then the fund is classified as current asset.
4. Bank overdraft
- A cash in bank with credit balance should not be offset against other
bank account in another bank. Thus it is classified as current liability.
- Offsetting may be done if the entity has more than one bank accounts
in the same bank or when the amount is deemed immaterial.
5. Compensating balance
- Minimum bank account balance may be legally restricted (formal
compensating balance) or otherwise (informal compensating balance).
- Formal compensating balance is not part of cash and cash
equivalents. It is classified as current asset if the related loan is short-
term. Conversely, as noncurrent asset if the related loan is long-term.
- In most cases, compensating balance agreements are not legally
binding.
6. Undelivered checks
- Theoretically, checks not yet released to payee should still form part of
the cash and cash equivalents balance. It will require an adjusting
entry to restore the cash in bank balance.
- In practice, checks drawn for payee are recorded and therefore
deducted from the cash in bank balance. Usually, no entry to restore
the said balance is made. This is because the balance is normally not
very substantial and that there is no evidence of actual cancellation of
check.
7. Postdated checks
- Checks delivered to payee but are dated after the reporting period
should still form part of the cash in bank balance. Reversal of the
previously recorded payment should be made.

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- Moreover, checks received from the drawer but are dated after the
reporting period should not form part of the cash in bank balance.
Reversal of the previously recorded collection should be made.
8. Stale checks
- Checks issued but not encashed within six months from the time of
issuance become stale. Accordingly, the drawer may issue a stop
payment order to the bank.
- If the amount is immaterial, stale check is recorded by the drawer as
miscellaneous income. If the amount is material and that liability is
expected to continue, cash is restored and liability is set up.
9. Cash short or over
- Cash shortage that is traceable to a cashier or custodian is accounted
as a receivable from the employee held liable for the shortage.
- If the shortage cannot be traced, then the amount is debited to loss
account or miscellaneous expense.
- Cash overage that is traced to be the money of the cashier or
custodian, the amount is accounted as payable to the employee
claiming the overage.
- If the overage cannot be traced, then the amount is credited to
miscellaneous income.

 Petty cash fund

 Petty cash may be accounted as:
a. Imprest system
- Petty cash fund is debited during establishment of fund and
whenever the fund balance is increased.
- Petty cash fund is credited at the end of the accounting period to
reflect the actual cash in the fund. Likewise, it is credited whenever
the fund balance is decreased.
- Expenses are recorded during replenishment and at the end of the
accounting period.
- Journal Entry:
 A check is drawn to establish fund.
Petty Cash Fund xx
Cash in Bank xx
 Payment of expenses out of fund
No Entry
 Replenishment of petty cash payments.
Expenses xx
Cash in Bank xx

b. Fluctuating system
- Petty cash fund is debited during establishment and replenishment
of fund and whenever the fund balance is increased.
- Petty cash fund is credited whenever the fund balance is
decreased.
- Expenses are recorded whenever expenses are paid using the
petty cash fund.
- No adjusting entry is necessary at the end of the accounting period.
- Journal Entry:
 A check is drawn to establish fund.
Petty Cash Fund xx
Cash in Bank xx
 Payment of expenses out of fund
Expenses xx

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Petty Cash Fund xx

 Replenishment of petty cash payments.
Petty Cash Fund xx
Cash in Bank xx

 Illustration 1: Cash and cash equivalent

Indicate whether the following items is included or excluded from the cash
and cash equivalent balance at year end.
a. Savings account at ABC bank
b. Checking account at XYZ bank
c. Another savings account at ABC but with negative balance
d. Bank overdraft with LMN Bank, no other account with LMN Bank
e. Postal money order
f. Postage stamps
g. Traveler’s check
h. Payroll account in XYZ bank
i. Commercial paper maturing on January 31 of the succeeding year,
acquired on October 1 of the current year
j. Postdated checks from customer
k. Sinking fund for bonds payable due in 4 years
l. Petty cash fund

Answer:
a. Included g. Included
b. Included h. Included
c. Excluded i. Excluded
d. Excluded j. Excluded
e. Included k. Excluded
f. Included l. Included

II. Bank Reconciliation

 Bank reconciliation process
 The process of bringing into agreement the cash balance of the entity as
recorded in the entity’s books and as reflected in bank’s record.
 A bank reconciliation statement is periodically prepared, usually at the end
of each month.
 Unlike the bank reconciliation which is as of a specific date, a four-column
cash reconciliation, also known as a proof of cash, reconciles bank and
book cash balances over a specified time period.

 Forms of Bank Reconciliation

 Adjusted Balance Method – Under this method, the book balance and the
bank balance are brought to a correct cash balance that must appear on
the balance sheet.
 Book to Bank Method – Under this method, the book balance is reconciled
with the bank balance or the book balance is adjusted equal to the bank
balance.
 Bank to Book Method – Under this method, the bank balance is reconciled
with the book balance or the bank balance is adjusted equal to the book
balance.

 Reconciling items
 Book reconciling items

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- Bank credit memos – refer to items not representing deposits credited

by the bank to the account of depositor but not yet recorded by the
depositor as cash receipts.
- Bank debit memos – refer to items not representing checks paid by the
bank which are charged or debited by the bank to the account of the
depositor but not yet recorded by the depositor as cash disbursement.
- Book errors – Errors in recording committed by the book
 Bank reconciling items
- Deposit in transit – are collection already recorded by the depositor as
cash receipt but not yet reflected on the bank statement.
- Outstanding checks – checks already recorded by the depositor as
disbursement but not yet reflected on the bank statement.
- Bank errors – errors in recording committed by the bank.

 Illustration 2: Reconciling items

Identify the following items as Bank reconciling items (BANK) or Book
reconciling items (BOOK). Indicate whether the reconciling item is an addition
(+) or deduction (-)
a. Bank service charge
b. Proceeds of bank loan automatically credited in the company’s account
but not yet recorded
c. Interest on bank account
d. NSF checks of customer returned by bank
e. Bank erroneously charge the company’s account
f. Notes collected by bank
g. Interest on notes collected by bank
h. Undeposited collections to be transferred to bank a day following the
receipt of bank statement.
i. Erroneous credit on the entity’s bank account representing collections
for another company.
j. Check issued but not yet recorded by the bank

Answer:
a. Book – Deduction
b. Book – Addition
c. Book – Addition
d. Book – deduction
e. Bank - Addition
f. Book – Addition
g. Book – Addition
h. Bank – Addition
i. Bank – Deduction
j. Bank - Deduction

 Illustration 3: Bank reconciliation

Prepare a bank reconciliation for the month of January, given the following
information
Balance per book P 4,000,000
Balance per bank 5,050,000
Bank Charges 10,000
Outstanding checks 950,000
Deposit in trans 1,200,000
Customer note collected by bank 1,500,000
Interest on customer note 60,000
Customer check returned NSF 250,000

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Case 1: Adjusted Balance Method

Balance per bank 5,050,000
Add: Deposit in transit 1,200,000
Total 6,250,000
Less: Outstanding Check (950,000)
Adjusted Bank Balance 5,300,000

Balance per Book 4,000,000

Add: Note collected by bank 1,500,000

Interest on note 60,000 1,560,000
Total 5,560,000
Less: Bank Charges 10,000
NSF Check 250,000 (260,000)
Adjusted Book Balance 5,300,000

Case 2: Book to Bank Method

Balance per Book 4,000,000

Add: Note collected by bank 1,500,000

Interest on note 60,000
Outstanding Check 950,000 2,510,000
Total 6,510,000
Less: Bank Charges 10,000
NSF Check 250,000

Deposit in Transit 1,200,000 (1,460,000)

Balance per Bank 5,050,000

Case 3: Bank to Book Method

Balance per Bank 5,050,000
Add: Bank Charges 10,000
NSF Check 250,000

Deposit in Transit 1,200,000 1,460,000

Total 6,510,000

Less: Note collected by bank 1,500,000

Interest on note 60,000
Outstanding Check 950,000 (2,510,000)
Balance per Book 4,000,000

III. PROOF OF CASH

 Unlike the bank reconciliation above which is as of a specific date, a four-

column cash reconciliation, also known as a “proof of cash,” reconciles bank
and book cash balances over a specified time period.

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 A proof of cash consists of four columns: beginning of the period bank

reconciliation, receipts, disbursements, and end-of-the-period bank
reconciliation. Thus, the proof of cash cross-foots as well as foots.

 The purpose of the proof of cash is to disclose any cash misstatements,

such as unrecorded disbursements and receipts within a month, which would
not be detected by a bank reconciliation.

 Illustration 4: Proof of cash

Prepare proof of cash for the month of February using adjusted balance
method.
January February
Cash in bank balance, Jan 31 200,000
Book credits – Feb 720,000
Book debits – Feb 800,000
Bank statement balance, Jan 330,000
31
Bank debits 530,000
Bank credits 700,000
Notes collected by bank 60,000 100,000
Service charge 8,000 2,000
NSF check 20,000 30,000
Deposit in transit 80,000 220,000
Outstanding checks 178,000 372,000

Solution:
Disbursemen
January 31 Receipts February 28
t
Balance per book 200,000 800,000 720,000 280,000
Note Collected
January 60,000 (60,000)
February 100,000 100,000
Service charge
January (8,000) (8,000)
February 2,000 (2,000)
NSF Check
January (20,000) (20,000)
February 30,000 (30,000)
Adjusted Book Balance 232,000 840,000 724,000 348,000

Receipt
January 31 Disbursement February 28
s
Balance per book 330,000 700,000 530,000 500,000
Deposit in transit
January 80,000 (80,000)
February 220,000 220,000
Outstanding Check
January (178,000) (178,000)
February 372,000 (372,000)

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Adjusted Book Balance 232,000 840,000 724,000 348,000

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Illustrative Problems

1. These are short-term, highly liquid investments that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of
changes in value.
A. Cash and cash equivalents C. Current investment
B. Treasury bills D. Cash equivalents

2. Which of the following is least likely a component of cash and cash

equivalents in the statement of financial position?
A. Cash in bank C. Cash fund
B. Cash equivalents D. Cash surrender value

3. Which cash fund is included from the cash and cash equivalent balance?
A. Fund set aside for acquisition of equipment and machinery.
B. Fund set up in a bank exclusively for payment of employees’
compensation.
C. Fund for the redemption of preference shares.
D. Fund established for settlement of long-term obligations.

4. Which of the following would not form part of the cash and cash equivalent
balance?
A. Customer’s postdated check
B. Drawer Issued stale check
C. Undelivered check
D. All of the foregoing

5. Internal control feature that is specific to petty cash is

A. Segregation of duties C. Authorization
B. Independent verification D. Imprest system

6. All of the following can be classified as cash and cash equivalents, except
A. Bank drafts
B. Commercial paper due for repayment in 90 days
C. Investment in equity securities
D. Redeemable preference shares acquired and due in 60 days

7. A cash in bank with credit balance that should not be offset against other
bank account in another bank.
A. Bank draft C. Stale check
B. Compensating balance D. Bank overdraft

8. The journal entry to record payment of expenses from the petty cash fund
would include a
A. Debit to expense C. Credit to cash on hand
B. Credit to petty cash D. None of the foregoing

9. In reconciling the cash balance with the book balance, which of the
following would not cause the bank balance shown in the bank statement
to be lower than the unadjusted book balance?
A. Interest credit to the account of the bank.
B. Cash on hand
C. Deposit in transit.
D. NSF checks from customer returned by the bank

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10. Which of the following is a bank reconciling item?

A. Bank service charge C. NSF check of customer
B. Outstanding checks D. Notes collected by bank

11. It consists of four columns: beginning of the period bank reconciliation,

receipts, disbursements, and end-of-the-period bank reconciliation.
A. Bank reconciliation statement C. Bank statement
B. Proof of cash D. Proof of bank balance

12. The following statements relate to cash. Which statement is true?

A. The term “cash equivalent” refer to demand credit instruments such as
money order and bank drafts.
B. The purpose of establishing a petty cash fund is to keep enough cash
on hand to cover all normal operating expenses for a period of time.
C. Classification of a restricted cash balance as current or noncurrent
should parallel the classification of the related obligation for which the
cash was restricted.
D. Compensating balance required by a bank should always be excluded
from “cash and cash equivalent”.

13. Which is not considered as a cash equivalent?

A. A three-year treasury note maturing on May 30 of the current year
purchased by the entity on April 15 of the current year.
B. A three-year treasury note maturing on May 30 of the current year
purchased by the entity on January 15 of the current year.
C. A 90-day T-bill.
D. A 60-day money market placement.

14. As of December 31 of the current year, an entity had various checks and
papers in its safe. Which item should not be included in its cash account in
the year-ended balance sheet?
A. US $20,000 cash.
B. Past due promissory note issued in favor of the entity by its President.
C. Another entity’s P150,000 check payable to the entity dated December
15 of the current year.
D. The entity’s undelivered check payable to a supplier dated December
31 of the current year.

15. Which item should be excluded from cash and cash equivalent on the
current year-end balance sheet of an entity?
A. The minimum cash balance in the entity’s current account which is
maintained to avoid service charges.
B. A check issued by the entity on December 27 of the current year but
dated January 15 next year.
C. Time deposit which matures in one year.
D. A customer’s check denominated in a foreign currency.

16. At December 31 of the current year, an entity had cash accounts at three
different banks. One account balance is segregated solely for payment
into a bond sinking fund. A second account, used for branch operations, is
overdrawn. The third account, used for regular corporate operations, has a
positive balance. How should three accounts be reported in the December
31 classified balance sheet?

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A. The segregated account should be reported as a noncurrent asset, the

regular account should be reported as a current asset, and the
overdraft should be reported as a current liability.
B. The segregated and regular accounts should be reported as current
assets, and the overdraft should be reported as a current liability.
C. The segregated account should be reported as a noncurrent asset,
and the regular account should be reported as a current asset net of
the overdraft.
D. The segregated and regular accounts should be reported as current
assets net of the overdraft.

17. In order to be classified as cash equivalents, an investment must have a

maturity period of
A. Less than 6 months C. 6 to 12 months
B. 3 to 6 months D. 3 months or less

18. Burr Company had the following account balances at December 31, year
2: Cash in banks P2,250,000 Cash on hand P125,000 Cash legally
restricted for additions to plant (expected to be disbursed in year 3)
P1,600,000 Cash in banks includes P600,000 of compensating balances
against short-term borrowing arrangements. The compensating balances
are not legally restricted as to withdrawal by Burr. In the current assets
section of Burr’s December 31, year 2 balance sheet, total cash should be
reported at
A. 1,775,000 C. 2,375,000
B. 2,250,000 D. 3,975,000

19. Trans Co. had the following balances at December 31, year 2:
 Cash in checking account P35,000
 Cash in money market account P75,000
 Treasury bill, purchased 11/1/Year 2, maturing 1/31/Year 3, P350,000
 Treasury bill, purchased 12/1/Year 2, maturing 3/31/Year 3, P400,000
Trans’s policy is to treat as cash equivalents all highly liquid investments
with a maturity of three months or less when purchased. What amount
should Trans report as cash and cash equivalents in its December 31,
Year 2 balance sheet?
A. 110,000 C. 460,000
B. 385,000 D. 860,000

20. Perth COMPANY reported the checkbook balance on December 31, Year
1 at P8,000,000. In addition, the entity held the following items in the safe
on that date:
 Check payable to Perth COMPANY, dated January 2, Year 2 in
payment of a sale, not included in December 31 checkbook balance,
P1,000,000
 Check payable to Perth COMPANY, deposited December 15 and
included in December 31 checkbook balance, but returned by bank on
December 30 stamped NSF. The check was redeposited on January 2,
Year 2 and cleared on January 5, Year 2, P3,000,000
 Check drawn on Perth COMPANY account, dated and recorded on
December 31, Year 1 but not mailed until January 15, Year 2,
P2,500,000
 Coins and currencies on hand P800,000
 Three-month money market instruments P1,500,000

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What is the correct amount of cash on December 31, Year 1?

A. 7,500,000 C. 9,800,000
B. 9,300,000 D. 8,300,000

21. Queen COMPANY had the following account balances on December 31,
Year 1:
Petty cash fund 50,000
Cash on hand 500,000
Cash in bank – current account

4,000,000
Cash in bank – payroll account

1,000,000
Time deposit

2,000,000
Cash in bank – restricted account for plant addition, expected to be
disbursed in Year 2 500,000
Cash in sinking fund set aside for bond payable
due June 30, Year 2

1,500,000

The petty cash fund included unreplenished December 31, Year 1 petty
cash expense vouchers of P5,000 and employee IOU of P5,000. The cash
on hand included a P100,000 check payable to the entity dated January
31, Year 2. In exchange for a guaranteed line of credit, the entity has
agreed to maintain a minimum balance of P200,000 in the unrestricted
current bank account.
What amount should be reported as cash and cash equivalents on
December 31, Year 1?
A. 6,940,000 C. 7,940,000
B. 8,940,000 D. 7,440,000

22. Royal COMPANY reported the following information in relation to imprest

petty cash fund at year-end:
Coins and currency 22,000
Petty cash vouchers:
Gasoline 3,000
Medical supplies 1,000
Repairs 1,500
IOU from an employee 3,500
Check drawn payable to the order of Rose Anne,
petty cash custodian, representing her salary. 15,000
Check of an employee returned by bank marked “NSF” 3,000
A sheet of paper with names of several employees together with
contribution for a birthday party and attached to the sheet of
paper is a currency of 5,000
The petty cash ledger account had a balance of P50,000. What amount of
petty cash fund should be reported at year-end?
A. 42,000 C. 37,000
B. 27,000 D. 22,000

23. Sun COMPANY provided following information on December 31, Year 1:

Cash in bank per book

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7,400,000
Cash in bank per bank statement

8,180,000
Deposit in transit

1,200,000
Outstanding checks, including certified check of P200,000

1,500,000
Note collected by bank for the entity,
including interest of P100,000

1,100,000
Service charge for December 20,000
DAIF checks of customers returned by bank 500,000
Error in recording a check in the book. The correct amount
as paid by the bank is P100,000 instead of
P200,000 as recorded in the book. 100,000
Deposit in other bank closed by BSP

1,500,000
Currency and coins on hand 600,000
Petty cash fund 50,000
What is the total cash to be reported as current asset on December 31,
Year 1?
A. 8,730,000 C. 8,180,000
B. 8,080,000 D. 8,530,000

24. U COMPANY provided the following information on December 31, Year 1:

Cash on hand 200,000
Petty cash fund 20,000
Philippine Bank current account

5,000,000
Manila Bank current account

4,000,000
City Bank current account (bank overdraft) ( 100,000
)
Asia Bank savings account for equipment acquisition 250,000
Asia Bank time deposit, 90 days

2,000,000
 Cash on hand included the following items: customer’s check for
P35,000 returned by the bank December 26, Year 1 due to insufficient
fund but subsequently redeposited and cleared by the bank on January
10, Year 2; and customer’s check for P15,000 dated January 10, Year
2, received December 23, Year 1.
 The petty cash fund compromised the following items on December
31, Year 1:
Currency and coins 5,000
IOU from an officer 2,000
Unreplenished petty cash vouchers 12,000

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 Included among the checks drawn by U COMPANY against the

Philippine Bank current account and recorded in December Year 1 are:
check written and dated December 31, Year 1 and delivered to payee
on January 3, Year 2, P25,000; and check written December 26, Year
1, dated January 30, Year 2 delivered to the payee on December 28,
Year 1, P45,000
What total amount should be reported as cash and cash equivalents on
December 31, Year 1?
A. 11,125,000 C. 11,155,000
B. 11,225,000 D. 11,205,000

25. True COMPANY had the following bank reconciliation on June 30, Year 1:
Balance per bank statement, June 30

3,000,000
Deposit in transit 400,000
Total

3,400,000
Outstanding checks ( 900,000
)
Balance per book, June 30

2,500,000
The bank statement for the month of July showed the following:
Deposits (including P200,000 note collected)

9,000,000
Disbursements (including P140,000 NSF check and P10,000 service
charge)

7,000,000
All reconciling items on June 30, Year 1 cleared through the bank in July.
The deposit in transit amounted to P1,000,000 and the outstanding checks
totaled P600,000 on July 31.
What is the cash in bank balance per ledger on July 31, Year 1?
A. 5,400,000 A. 5,550,000
B. 5,350,000 D. 4,500,000

26. In preparing its August 31, year 2 bank reconciliation, Apex Corp. has
available the following information:
Balance per bank statement, 8/31/Y2 P18,050
Deposit in transit, 8/31/Y2 3,250
Return of customer’s check for insufficient funds, 8/31/Y2 600
Outstanding checks, 8/31/Y2 2,750
Bank service charges for August 100
At August 31, year 2, Apex’s correct cash balance is
A. 18,550 C. 17,850
B. 17,950 D. 17,550

27. Reconciliation of Joy Company’s bank account at May 31 of the current

year is
Balance per bank statement, 2,600,000
Deposit in transit 300,000
Total 2,900,000
Outstanding checks ( 100,000)

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Adjusted bank balance 2,800,000

Balance per book 2,810,000

Bank service charge ( 10,000)
Adjusted book balance 2,800,000

June data are as follows:

Bank Book
Checks recorded 2,200,000 2,500,000
Deposit recorded 1,600,000 1,800,000
Service charges recorded 50,000 10,000
Notes collected plus interest 550,000
NSF checks 100,000
Balances 2,400,000 2,100,000
The deposit in transit on June 30
A. 100,000 C. 400,000
B. 300,000 D. 500,000

28. The outstanding checks on June 30

A. 700,000 C. 500,000
B. 100,000 D. 400,000

29. The adjusted cash in bank balance on June 30

A. 2,500,000 C. 2,100,000
B. 2,400,000 D. 2,800,000

30. The adjusted cash receipts for the month of June

A. 2,150,000 C. 1,600,000
B. 2,350,000 D. 1,800,000

31. The adjusted cash disbursement for the month of June

A. 2,200,000 C. 2,650,000
B. 2,350,000 D. 2,510,000

- End of discussion

“Education's purpose is to replace an empty mind with an open one.”

Malcolm Forbes

Module 1 Page 15 of 16
Cash and Cash Equivalents

Answer Key:

1. D 11. B 21. B
2. D 12. C 22. C
3. B 13. B 23. A
4. A 14. B 24. D
5. D 15. C 25. B
6. C 16. A 26. A
7. D 17. D 27. D
8. D 18. C 28. D
9. A 19. C 29. A
10. B 20. D 30. B
31. C

Module 1 Page 16 of 16