IA1 - Quiz#1 (Chapter 1 & 2 - CCE & Bank Recon) Theories and Problems

11/23/21, 2:20 AM IA1 - Quiz#1 (Chapter 1 & 2 - CCE & Bank Recon ) Theories and Problems: Intermediate Accounting
Accounting I - Christine B. GOLILAO
IA1 - Quiz#1 (Chapter 1 & 2 - CCE & Bank Recon )

Theories and Problems
Due
Sep 6 at 5:30pm
Points
50
Questions
35
Available
Sep 6 at 4pm - Sep 6 at 5:30pm
about 2 hours
Time Limit
75 Minutes
This quiz was locked Sep 6 at 5:30pm.
Attempt History
Attempt Time Score
LATEST Attempt 1
75 minutes 27 out of 50

Correct answers are no longer available.
Score for this quiz:

27 out of 50
Submitted Sep 6 at 5:23pm
This attempt took 75 minutes.
Question 1 1
/ 1 pts
Checks drawn but are postdated should be reverted to cash even if the
checks are already delivered to the payees.

True

False
Incorrect
Question 2 0
/ 1 pts
https://cpu.instructure.com/courses/6627/quizzes/38784 1/27
11/23/21, 2:20 AM IA1 - Quiz#1 (Chapter 1 & 2 - CCE & Bank Recon ) Theories and Problems: Intermediate Accounting I - Christine B. GOLILAO
To qualify as a cash equivalent, a short-term investment in debt securities

must have a remaining term of three months before the maturity date as
of the reporting date.

True

False
Question 3 1
/ 1 pts
A compensating balance that is legally restricted as to withdrawal should

be classified as a separate current asset and not as part of cash and cash
equivalents.

True

False
Incorrect
Question 4 0
/ 1 pts
In most situations, the petty cash fund is reimbursed prior to the year-end
to avoid adjusting entry, the understatement of cash, and the
overstatement of expenses.

True

False
Incorrect Question 5 0
/ 1 pts
Cash funds being held specifically for the retirement of long-term debts
that will mature currently should be excluded from current assets and
shown as non-current assets.

True

False
Question 6 1
/ 1 pts
In preparing bank reconciliation, outstanding checks will cause the cash

balance per ledger to be lesser than the balance reported by the bank, all
other things being equal.

True

False
Question 7 1
/ 1 pts
Deposit in a foreign bank that is unrestricted in use shall be presented as

part of cash.

True

False
Incorrect
Question 8 0
/ 1 pts
The adjusting entries for a bank reconciliation may include a credit to

accounts payable for a check drawn eight months ago.

True

False
Question 9 1
/ 1 pts
Classify to which line item an account given below will be presented:
Cash deposited with a closed bank

Cash and Cash Equivalent

Long-term investment

Current liability

Noncurrent liability

Other noncurrent asset

Property, plant and equipment
Question 10 1
/ 1 pts
Which statement in relation to bank reconciliation is true?

Credit memos will cause the cash balance per ledger to be higher than that
reported by the bank, all other things being equal.

Outstanding checks will cause the cash balance per ledger to be greater
than the balance reported by the bank, all other things being equal.

The cash amount reported in the statement of financial position must be
the balance reported in the bank statement.

Bank service charge will cause the cash balance per ledger to be higher
than that recorded by the bank, all other things being equal.
Incorrect
Question 11 0
/ 1 pts
Which of the following is not a basic characteristic of a system of cash

control?

Combined responsibility for handling and recording cash

Internal audits at irregular intervals

Use of a voucher system

Daily deposit of all cash received
Incorrect
Question 12 0
/ 1 pts
Which of the following should not be included in cash?

Cash collections not deposited at year-end

Bank overdraft

Checks received from customers

Checks drawn but not delivered to a payee
Incorrect
Question 13 0
/ 1 pts
Unrestricted deposits in foreign bank are classified as

Noncurrent asset with appropriate disclosure.

Be written off as loss.

As part of cash and cash equivalents.

Current asset with appropriate disclosure.
Incorrect
Question 14 0
/ 1 pts
Which of the following may be used to compute for the adjusted balance
of cash?

Balance per books + Credit memo – Debit memo – Overstatement of cash
disbursements

Balance per books + Credit memo – Debit memo – Understatement of
cash collections

Balance per books + Credit memo – Debit memo + Overstatement of cash
collections

Balance per books + Credit memo – Debit memo + Overstatement of cash
disbursements
Incorrect
Question 15 0
/ 1 pts
Which of the following would be added to the balance per bank statement
to arrive at the correct cash balance?

Outstanding check

Bank service charge

A customer note collected by the bank on behalf of the depositor.

Deposit in transit
Question 16 1
/ 1 pts
Plant Expansion Fund


Current liability



Short-term Investment

/ 1 pts
Time deposit - 6 months term






Current liability
Incorrect
Question 18 0
/ 1 pts
Bank overdraft


Current liability



Short-term investment

Question 19 1
/ 1 pts
Which of the following should not be considered cash?

Petty cash fund

Bank draft

Money market instrument

Coin and currency
/ 1 pts
In replenishing a petty cash fund, which of the following entries is

required?

Debit Petty Cash, credit Cash in bank

Debit Petty Cash, credit individual expense accounts

Debit Cash in bank, credit Petty Cash

Debit individual expense accounts, credit Cash in bank
Question 21 1
/ 1 pts
Bonds payable

Current liability




Noncurrent liability

Question 22 1
/ 1 pts
Treasury bills - maturing in 18 months


Current liability




Incorrect
Question 23 0
/ 1 pts
Which of the following is considered cash or financial reporting purposes?

Employee IOUs

Stale check received from a customer 8 months ago.

Postdated checks received from a customer

Money orders, certified checks, and personal checks.
Question 24 1
/ 1 pts
Which of the following may qualify as cash equivalent?

Investments in redeemable preference shares acquired on December 1,
2020, maturing February 28, 2021.

Treasury notes acquired on November 1, 2020, maturing on March 31,
2021.

One-year money market placements

Investment in ordinary shares acquired on December 31, 2020, expected
to be sold within the next three months.
Question 25 2
/ 2 pts
In an audit of an entity on December 31, 2021, the following data are

gathered:
Balance per book 2,800,000
Bank charges 7,000
Outstanding checks 665,000
Deposit in transit 840,000
Customer note collected by bank, (including interest of

1,092,000
P42,000)
Customer check returned NSF 175,000
Depositor’s note charged by bank against an entity’s

700,000
account
A check written in December for P200,000 in payment

of an account payable had been recorded as 20,000

What is the adjusted cash in bank balance on December 31, 2021?

2,830,000

3,190,000

4,230,000

2,655,000
Question 26 2
/ 2 pts
The cash balance per book of an entity on July 31 had an ending balance
of P3,455,000. The following data were assembled in the course of
reconciling the bank balance:
The bank erroneously credited the entity’s account for P21,000 on July
22.
During the month, the bank charged back NSF checks amounting to
P23,000 of which P8,000 had been redeposited by July 25.
Collection for July 31 totaling P103,000 was deposited the following
month.
Checks outstanding on July 31 amounted to P302,000.
Note collected by the bank for the entity was P80,000 and the
corresponding bank charge was P5,000.
What is the cash balance per bank statement?

3,515,000

3,494,000

3,735,000

3,693,000
Question 27 2
/ 2 pts
While checking the cash accounts of an entity on December 31, 2021,

you find the following information:
Balance per books P677,600
Balance in checking account (outstanding checks per
books of P98,760) 653,230
Deposit in bank closed by BSP 160,000
Bank charges not yet taken up in the books 580
Book error in recording a check, the correct amount as

paid by
by the bank is P8,900 instead of P9,800 as recorded in

the
900
books, or a difference of
Currency and coins counted 95,000
Petty cash fund (of which P4,500 is in the form of paid

10,000
vouchers)
Bond sinking fund cash 100,000
Receivables from employees 7,000
What is the correct cash in bank balance to be reported on

December 31, 2021?

677,920

778,420

781,120

676,120
Question 28 2
/ 2 pts
An entity’s checkbook balance on December 31, 2021 was P2,160,000.

The same date, the entity held the following items in its safe:
A P67,500 check payable to the entity, dated January 2, 2022, was

included in the December 31, checkbook balance.
A P47,250 check payable to the entity deposited December 22 and

included in the December 31 checkbook balance, that was returned by
the bank on December 24 marked “NSF”. The check was redeposited
December 26, 2021, and cleared December 29, 2021.
A P337,500 check payable to a supplier and drawn on the entity’s

account, that was dated and recorded December 31, but not mailed until
January 15, 2022.
It its December 31, 2021 statement of financial position, the entity should
report cash at

2,430,000

2,497,500

2,450,250

2,382,750
Question 29 2
/ 2 pts
The following information pertains to an entity as of December 31, 2020:
Cash balance per bank statement 4,000,000
Checks outstanding (including a certified check of

500,000
P100,000)
150,000
Customer note collected by bank of the entity

NSF checks of customers returned by bank 200,000
Bank service charge shown in December bank

20,000
statement
Error made by the entity in recording a check that

cleared the bank in December (check was drawn in 90,000
December for P100,000 but recorded at P10,000)
Deposit in transit 1,300,000
What is the cash balance per ledger on December 31, 2020?

5,060,000

4,880,000

4,900,000

4,960,000
/ 2 pts
An entity shows the following account balances in its financial records as

of December 31, 2021:
Checking account at Metro Bank 1,000,000
Checking account at Land Bank ( 40,000)
Payroll account – PNB 200,000
Foreign bank account-unrestricted 1,500,000
Commercial paper with maturity of 3 months 44,000
Savings deposit in closed bank 200,000
I.O.U from president’s brother 150,000
Traveler’s check 100,000
Cash in sinking fund set aside for bonds payable due

1,000,000
December 31, 2023
Petty cash fund (P18,000 in currency & expenses

50,000
receipts for P32,000)
Money order 25,000
Time deposit, 120 days 100,000
What total amount of “cash and cash equivalent” should be reported

on December 31, 2021?

2,887,000

3,887,000

2,387,000

2,487,000
/ 2 pts
The petty cash fund account of the company on December 31, 2021
showed the following:
Coins and currency 10,320
Paid vouchers:
Transportation 748
Gasoline 336
Office supplies 560
Postage stamps 448
Due from employees 2,688
Digging deeper into the records, you realized that there is a Manager's
check for P2,540. There is also an employee’s check, dated December
31, 2021 representing her salary, P5,000 and a check drawn by company
to the order of petty cash custodian amounting to 7,360.
What is the amount of the petty cash fund for statement of financial
position presentation?

30,000

22,680

25,220

10,320
Question 32 2
/ 2 pts
An entity provided the following data on December 31, 2021:
Checkbook balance 2,250,000
Bank statement balance 1,800,000
Check drawn on entity’s account, payable to supplier,

dated and recorded on December 31, 2021 but not
mailed until January 31, 2022 450,000
Deposit made by another entity erroneously credited by

the bank to the entity. 100,000
Cash in sinking fund set aside for bonds payable due 675,000
March 31, 2022
Treasury bills, purchased November 1, 2021 and

1,125,000
maturing March 1, 2022
Maybank time deposit, 90 days 500,000
The May bank time deposit is set aside for the acquisition of equipment to
be made early in March 2022.
What amount should be reported as cash and cash equivalents on

December 31, 2021?

3,375,000

2,700,000

4,500,000

3,200,000
Question 33 2
/ 2 pts
On December 31, 2021, the company has the following information

concerning its cash and cash equivalents and some other items:
Undeposited cash collections 25,000
BDO, current account 1,200,000
Checks received from customer, dated Jan. 2, 300,000

2022
Certificate of deposit 400,000
Petty cash fund, (P4,000 in the form of vouchers) 10,000
Postage stamps 300
Savings account in a closed bank 300,000
Check drawn against entity’s account but not mailed

until Jan. 3, 2022 5,000
Bank draft from customer 20,000
NSF check returned by bank 10,000
What amount of “cash” should the company report in its December 31,
2021 statement of financial position?

P1,660,000

P1,960,000

P1,256,000

P1,956,000
/ 2 pts
The petty cash fund of an entity on December 31, 2021 is composed of

the following:
Currencies 4,200
Coins 1,050
Petty cash vouchers:
Gasoline 2,625
Supplies 1,575
IOUs 3150
Employee’s check, dated Jan. 5, 2022 2,100
Check drawn by the entity to the order of

a petty cash custodian 4,300
The petty cash general ledger account has an imprest balance of

P20,000.
Assuming no replenishment on December 31, 2021, what is the

year-end entry to adjust the petty cash fund? (Click only the letter
that corresponds to your entry)

A. Gasoline 2,625
Supplies 1,575
Receivable from employee 5,250
Petty cash fund 9,450
B. Gasoline 2,625
Supplies 1,575
Cash in bank 9,450
C. Gasoline 2,625
Supplies 1,575
Cash short or Over 1,000
D. Gasoline 2,625
Supplies 1,575
Cash short or Over 1,000

C

B

A

D
Partial Question 35 2
/ 6 pts
The December 31, 2020 trial balance of an entity includes the following
accounts:
Cash on hand 500,000
Petty cash Fund 50,000
Bank draft 100,000
Sinking fund cash 1,000,000
Metro Bank current account 7,500,000
Banco De Oro current account 3,750,000
Allied Bank current account (500,000)
China Bank saving deposit -closed bank 312,500
Maybank time deposit, 60 days, restricted for

equipment acquisition early in
2,500,000
2021.
Treasury bills, purchased Dec. 1, 2020 and
due March 1, 2021 1,000,000
Money market instruments 250,000
Cash on hand includes the following items:
Customer’s check for P25,000 dated December 20, 2020, received

December 29, 2020.
Customer’s check for P62,500 returned by bank December 23, 2020

due to insufficient fund but subsequently redeposited and cleared by
the bank January 5, 2021.
Petty cash Fund consisted of the following items as of December 31,

2020:
Currency and coins 18,750
IOUs from employees 7,500
A check drawn by an entity to the order of

petty cash custodian, representing her salary 13.750
Unreplenished petty cash vouchers 10,000

Metro Bank current account:
Check of P500,000 was drawn against Metro Bank current account

in payment of accounts payable was dated and recorded on
December 31, 2020 but mailed to creditors on January 10, 2021.
Check of P75,000 dated January 2, 2021 in payment of accounts

payable was recorded and delivered to payee on December 30,
2020.
Answer the following questions: (2pts. each)
What entry should be made to adjust Metro Bank current account?: [

Select ]
What is the correct amount of total “cash” to be reported?: [ Select ]
What is the total amount of cash and cash equivalents to be reported?:

[ Select ]
Answer 1:
Debit Metro Bank current account P575,000 and Credit Accounts Payable
P575,000
Answer 2:
(You left this blank)
Answer 3:
(You left this blank)
Quiz Score:
27 out of 50

IA1 - Quiz#1 (Chapter 1 & 2 - CCE & Bank Recon) Theories and Problems

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

IA1 - Quiz#1 (Chapter 1 & 2 - CCE & Bank Recon) Theories and Problems

Uploaded by

Copyright:

Available Formats

11/23/21, 2:20 AM IA1 - Quiz#1 (Chapter 1 & 2 - CCE & Bank Recon ) Theories and Problems: Intermediate Accounting

Accounting I - Christine B. GOLILAO

IA1 - Quiz#1 (Chapter 1 & 2 - CCE & Bank Recon )

This quiz was locked Sep 6 at 5:30pm.

Score for this quiz:

To qualify as a cash equivalent, a short-term investment in debt securities

A compensating balance that is legally restricted as to withdrawal should

In preparing bank reconciliation, outstanding checks will cause the cash

Deposit in a foreign bank that is unrestricted in use shall be presented as

The adjusting entries for a bank reconciliation may include a credit to

Classify to which line item an account given below will be presented:

Cash deposited with a closed bank

Which statement in relation to bank reconciliation is true?

Which of the following is not a basic characteristic of a system of cash

Which of the following should not be included in cash?

Unrestricted deposits in foreign bank are classified as

Classify to which line item an account given below will be presented:

Plant Expansion Fund

Classify to which line item an account given below will be presented:

Time deposit - 6 months term

Classify to which line item an account given below will be presented:

Which of the following should not be considered cash?

In replenishing a petty cash fund, which of the following entries is

Classify to which line item an account given below will be presented:

Classify to which line item an account given below will be presented:

Treasury bills - maturing in 18 months

Which of the following is considered cash or financial reporting purposes?

Which of the following may qualify as cash equivalent?

In an audit of an entity on December 31, 2021, the following data are

Balance per book 2,800,000

Bank charges 7,000

Outstanding checks 665,000

Deposit in transit 840,000

Customer note collected by bank, (including interest of

Customer check returned NSF 175,000

Depositor’s note charged by bank against an entity’s

A check written in December for P200,000 in payment

What is the adjusted cash in bank balance on December 31, 2021?

What is the cash balance per bank statement?

While checking the cash accounts of an entity on December 31, 2021,

Balance per books P677,600

Balance in checking account (outstanding checks per

books of P98,760) 653,230

Deposit in bank closed by BSP 160,000

Bank charges not yet taken up in the books 580

Book error in recording a check, the correct amount as

by the bank is P8,900 instead of P9,800 as recorded in

Currency and coins counted 95,000

Petty cash fund (of which P4,500 is in the form of paid

Bond sinking fund cash 100,000

Receivables from employees 7,000

What is the correct cash in bank balance to be reported on

An entity’s checkbook balance on December 31, 2021 was P2,160,000.

A P67,500 check payable to the entity, dated January 2, 2022, was

A P47,250 check payable to the entity deposited December 22 and

A P337,500 check payable to a supplier and drawn on the entity’s

The following information pertains to an entity as of December 31, 2020:

Cash balance per bank statement 4,000,000

Checks outstanding (including a certified check of

NSF checks of customers returned by bank 200,000

Bank service charge shown in December bank

Error made by the entity in recording a check that

Deposit in transit 1,300,000