Cash and Cash Equivalents Sample Problems - Accounting
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Questions and Answers

What is the correct amount of cash for Kwarta Company?

  • 306,000 (correct)
  • 305,000
  • 330,820
  • 315,000

What is the adjusted checkbook balance for Kuton Company as of December 31, 2012?

  • 155,000
  • 180,000
  • 200,000
  • 145,000 (correct)

How much are the outstanding checks for Kwarta Company?

  • $20,000
  • $15,200 (correct)
  • $30,000
  • $25,000

What is the total amount of cash in Far East bank for Kwarta Company?

<p>$105,200 (A)</p> Signup and view all the answers

What is the combined amount of customer's check on hand and traveler's check for Kwarta Company?

<p>$37,120 (C)</p> Signup and view all the answers

What is the correct balance of the company's cash account as of December 31, 2012?

<p>$2,165,000 (B)</p> Signup and view all the answers

What is the amount of cash shortage in Jennifer Incorporated's petty cash fund at the end of June 2012?

<p>$1,059.40 (B)</p> Signup and view all the answers

What is the correct balance of the petty cash fund at Canyon Company as of June 30, 2012?

<p>$6,250 (A)</p> Signup and view all the answers

What is the apparent cash shortage amount suspected to result from an employee's theft for the month of March?

<p>$23,068.20 (A)</p> Signup and view all the answers

What is the correct balance of Perlas Corporation's cash account after reconciling the bank and book balances for December 2012?

<p>Balance per bank statement + Receipts not yet deposited - Bank service charge - Customer's check returned (B)</p> Signup and view all the answers

Flashcards

Adjusted Checkbook Balance

Adjusted checkbook balance includes outstanding checks

Cash Reconciliation

The difference between the bank's cash balance and the company's cash balance after reconciling

Outstanding Checks

Checks written by the company that haven't been cashed by the recipient yet

Cash Balance

The total amount of money a company has on hand, in the bank, and any other forms of liquid assets

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Bank Balance

The amount of money a company has in its bank account

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Petty Cash Fund

The amount of money a company has in its petty cash fund

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Petty Cash Shortage

The difference between the actual amount of cash in a petty cash fund and the amount that should be there

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Bank Reconciliation

The process of verifying the accuracy of bank statements and updating company records

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Customer's Check Returned

A check that was deposited but then returned because of insufficient funds in the payer's account

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Bank Service Charge

A fee charged by a bank for providing services

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Study Notes

Cash Balances and Reconciliations

  • Kwarta Company's correct amount of cash is unknown.
  • Kuton Company's adjusted checkbook balance as of December 31, 2012 is unknown.
  • Kwarta Company has outstanding checks for an unknown amount.
  • The total amount of cash in Far East bank for Kwarta Company is unknown.
  • The combined amount of customer's check on hand and traveler's check for Kwarta Company is unknown.
  • The correct balance of Kwarta Company's cash account as of December 31, 2012 is unknown.
  • Jennifer Incorporated's petty cash fund has a cash shortage of an unknown amount at the end of June 2012.
  • The correct balance of Canyon Company's petty cash fund as of June 30, 2012 is unknown.
  • There is an apparent cash shortage of an unknown amount suspected to result from an employee's theft for the month of March.
  • Perlas Corporation's correct cash account balance after reconciling the bank and book balances for December 2012 is unknown.

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Description

Test your understanding of cash and cash equivalents with this sample problem set. Practice calculating the total cash amount from different sources and clarifying the components of cash in the statement of financial position.

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