1. Which of the following should not be considered as cash for financial reporting purposes?

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a. Petty cash funds and change funds
b. Money orders, certified checks and personal checks
c. Coins, currency and available funds
d. Postdated checks and IOUs
 
 
2. Which of the following should be considered as cash?
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a. Certificates of deposits
b. Money market checking accounts
 
c. Money market savings certificates
d. Postdated checks

 
3. Which of the following would not be classified as cash?
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a. Personal checks
b. Travelers’ checks
c. Cashiers’ checks
d. Postdated checks
 
 
4. The following statements relate to cash. Which statement is true?
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a. The term “cash equivalent” refers 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.
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 balances required by a bank should always be excluded from “cash and cash equivalent”

 
5. The petty cash fund account under the imprest fund system is debited --
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a. Only when the fund is created
b. When the fund is created and every time it is replenished.
c. When the fund is created and when the size of the fund is increased.
 
d. When the fund is created and when the fund is decreased.

 
6. Violet Company had the following cash balances at December 31, 2017:
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255,000
 
 
7. Rose Corporation’s checkbook balance on December 31, 2017, was P8,000. In addition, Rose
held the following items in safe on December 31:
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4,950
 
 
8. Brown Co. established a P3,000 petty cash fund. You found the following items in the fund:
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0
 
 
9. Yellow Co. had the following account balances on December 31, 2017:
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2,375,000
 
 
10. Red Co. had the following balances on December 31, 2017:
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460,000
 
 
11. The cash account in a company’s ledger showed a balance on December 31, 2017 of P44,150
which
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44,150
 
 
12. The following pertains to Solid Co. at December 31, 2017:
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69,000
 
 
13. Liquid Corporation has supplied you with the following lists of its bank accounts and cash at
December 31, 2017:
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48,000
 
 
14. The following items were included in the cash accounts of Regal Co. on December 31, 2017:
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80,000
 
 
15. Blue Company had the following cash balances on December 31, 2017:
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34,000