1. Statement 1: Cash is the same as cash equivalent.

Statement 2: There is a standard that specifically covers cash and cash

equivalents accounting. Both statements are false.
2. All of the following can be detected if an accountant prepares a bank reconciliation at the
end of every month, except for Collections from customers not declared by sales personnel
and money collected not included in the collections for the day.
3. Which of the following cannot be considered an item of cash and cash equivalents?
Savings account in a closed bank awaiting declaration of bankruptcy.
4. Which of the following is not a cash equivalent? Time deposit for 120 days.
5. What is the correct treatment of bank overdraft? Bank overdraft, as a general rule, is
classified as a current liability.
6. Which of the following tools being used in accounting shows a detailed presentation
of unadjusted receipts and disbursements and the adjustment made to them during a
period? Proof of Cash
7. ABC Company's accountant is preparing an adjusted balance bank reconciliation.
Which of the following items can be seen as an addition to the unadjusted book
balance? Credit memos
8. Mr. Shu is preparing a bank reconciliation for the month of January using the book to
bank method. Which of the following items is added to the adjusted book balance to
arrive at the unadjusted bank balance? Outstanding check