CHAPTER 1: Cash and Cash Equivalent

Page 26-33

Problem 1-10
ANSWER: C. (4,600,000)
Problem 1-17
ANSWER: D. (8,050,000)
Problem 1-11
ANSWER: D. (6,450,000)
Problem 1-18
ANSWERS: 1.) B. 7,440,000
Problem 1-12
2.) C. 5,500,000
ANSWER: A. (4,500,000)
Problem 1-19
Problem 1-13
ANSWERS: 1.) A. 3,400,000
ANSWER: A. (6,940,000)
2.) A. 3,500,000
Problem 1-14 Problem 1-20
ANSWER: B. (9,150,000)
ANSWERS: C. 37,000
Problem 1-15 Problem 1-21
ANSWER: C. (2,375,000)
ANSWER: C. 6,000
Problem 1-16 Problem 1-22
ANSWER: B. (5,150,000)
ANSWERS: 1.) B. 4,200,000
2.) A. 4,645,000

Problem 1-23 | multiple choice

Page 34-35
1.) D. (IOU) 7.) B. (NONCURRENT ASSET WITH
2.) B. (CHECKING ACCOUNT) APPROPRIATE DISCLOSURE)

3.) A. (TRAVEL CASH ADVANCE) 8.) D. (MINIMUM DEPOSIT REQUIRED TO BE

4.) B. (MONEY MARKET INSTRUMENT)
5.) D. (ALL OF THESE STATEMENTS ARE
TRUE ABOUT OVERDRAFT)
6.) C. (RESTRICTED CASH)
MAINTAINED IN CONNECTION WITH A
BORROWING ARRANGEMENT)
9.) A. (FUND IN A BANK ACCOUNT THAT
CANNOT BE SPENT)
10.) C. (WHICH LEGALLY RESTRICTED AND
RELATED TO A SHORT-TERM LOAN IS
 CLASSIFIED SEPARATELY AS CURRENT
ASSET)

Problem 1-24 | multiple choice

Page 36

1.) D. (IS SO NEAR MATURITY THAT IT 3.) C. (EQUITY INVESTMENTS)

PRESENTS INSINIFICANT RISK OF 4.) B. (HIGH GRADE MARKETABLE EQUITY
CHANGE IN INTEREST) INVESTMENTS)
2.) A. (FROM THE DATE THE INVESTMENTS 5.) D. (ALL OF THESE ARE FEATURES CASH
ARE ACQUIRED EQUIVALENTS

Problem 1-25 | multiple choice

Page 37
1.) D. (IMPREST SYSTEM) 4.) C. (IS DEBITED WHEN THE PETTY

2.) D. (TO EFFECTIVELY CONTROL CASH FUND PROVES OUT SHORT)

CASH DISBURSEMENT) 5.) B. (MONEY KEPT ON HAND FOR

3.) C. (WHEN THE FUND IS CREATED MAKING MINOR DISBURSEMENTS

AND WHEN THE SIZE OF THE FUND OF COIN AND CURRENCY RATHER

IS INCREASED) THAN BY WRITING CHECKS)

Chapter 2 | Bank Reconciliation

Page 68-74 Problem 2-11
ANSWER: A. 1,500,000
Problem 2-1O
ANSWER: A. 1,855,000 Problem 2-12
 ANSWER: B. 3,660,000 ANSWERS: 1.) C. 9,000,000

Problem 2-13 2.) C. NET DEBIT 500,000

ANSWER: B. 1,530,000 Problem 2-17

Problem 2-14 ANSWERS: 1.) A. 2,120,000

2.) B. 3,070,000
ANSWER: A. 900,000

Problem 2-18
Problem 2-15
ANSWERS: 1.) A. 7,750,000
ANSWER: A. 2,500,000
2.) A. 7,070,000

3.) A. 8, 700,000

Problem 2-19
ANSWERS: 1.) A. 700,000

Problem 2-16 2.) B. 920,000

3.) C. 990,000

Problem 2-20 | multiple choice

Page 75-77 STATEMENT AND THE CASH BALANCE
1.) D. (A SCHEDULE THAT ACCOUNTS FOR SHOWN ON THE GENERAL LEDGER)
THE DIFFERENCES BETWEEN CASH 2.) A. (NOTE RECEIVABLE COLLECTED BY
BALANCE SHOWN ON THE BANK BANK IN FAVOR OF THE DEPOSIT AND
 CREDITED TO THE ACCOUNT OF THE 8.) D. (ERRORS MADE BY THE DEPOSITOR)

DEPOSIT) 9.) C. (A CERTIFIED CHECK IN ONE DRAWN

3.) C. (DEPOSIT IN TRANSIT) BY A BANK UPON ITSELF

4.) B. (OUTSTANDING CHECK) 10). A. (BANK SERVICE CHARGE WILL

5.) C. (DEPOSIT TRANSITS) CAUSE THE CASH BALANCE PER LEDGER TO

6.) A. (DEPOSITS CREDITED BY THE BANK BE HIGHER THAN THAT REPORTED BY THE

BUT NOT YET RECORDED BY THE BANK, ALL OTHER THINGS BEING EQUAL

DEPOSITOR)

7.) B. (ALL TIMES EXCEPT BANK ERRORS,

OUTSTADING CHECKS AND DEPOSIT

TRANSIT)