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Questions and Answers
Which of the following items is a common example of cash equivalents?
Which of the following items is a common example of cash equivalents?
- Treasury bills (correct)
- Land property
- Raw materials inventory
- Office equipment
In the bank reconciliation, what was the amount of notes receivable added to the adjusted balance?
In the bank reconciliation, what was the amount of notes receivable added to the adjusted balance?
- $2,900 (correct)
- $1,335
- $596
- $996
What effect did the interest expense have on the adjusted book balance?
What effect did the interest expense have on the adjusted book balance?
- Decreased it by $1,335
- Increased it by $2,900
- Decreased it by $596 (correct)
- Increased it by $596
Which item is considered a deduction in the adjusting entries?
Which item is considered a deduction in the adjusting entries?
What was the effect of the bank error on the adjusted bank balance?
What was the effect of the bank error on the adjusted bank balance?
Which financial instrument presents insignificant risk of changes in value due to interest rate changes?
Which financial instrument presents insignificant risk of changes in value due to interest rate changes?
What is one of the ways to ensure internal control over cash receipts according to the text?
What is one of the ways to ensure internal control over cash receipts according to the text?
Which document should be maintained to ensure proper internal control over cash receipts?
Which document should be maintained to ensure proper internal control over cash receipts?
What is the primary tool a business uses to control cash receipts and payments?
What is the primary tool a business uses to control cash receipts and payments?
In what situations should payments be made by cash according to the text?
In what situations should payments be made by cash according to the text?
What type of bank account has no restrictions on withdrawals unless above a specific limit?
What type of bank account has no restrictions on withdrawals unless above a specific limit?
What is another term for a demand account as per the text?
What is another term for a demand account as per the text?
What is the primary purpose of using a bank account for controlling cash in a business?
What is the primary purpose of using a bank account for controlling cash in a business?
Which of the following is NOT a reason for disagreements between the balance per bank and balance per books in bank reconciliation?
Which of the following is NOT a reason for disagreements between the balance per bank and balance per books in bank reconciliation?
In bank reconciliation, what are 'collections by bank' referring to?
In bank reconciliation, what are 'collections by bank' referring to?
What is the purpose of a four-column bank reconciliation?
What is the purpose of a four-column bank reconciliation?
In bank reconciliation, what does 'Not-sufficient-funds (NSF) checks' refer to?
In bank reconciliation, what does 'Not-sufficient-funds (NSF) checks' refer to?
What is a common reason for discrepancies between the balance per bank and balance per books in bank reconciliation?
What is a common reason for discrepancies between the balance per bank and balance per books in bank reconciliation?
How should companies classify restricted deposits held as compensating balances against short-term borrowing arrangements?
How should companies classify restricted deposits held as compensating balances against short-term borrowing arrangements?
In what section of the financial statement should companies report bank overdrafts?
In what section of the financial statement should companies report bank overdrafts?
When should companies disclose bank overdrafts separately according to the text?
When should companies disclose bank overdrafts separately according to the text?
What should companies do if they have compensating balance arrangements without any cash use restrictions?
What should companies do if they have compensating balance arrangements without any cash use restrictions?
When are bank overdrafts included as a component of cash according to the text?
When are bank overdrafts included as a component of cash according to the text?
What is the suggested classification for restricted deposits held as compensating balances against long-term borrowing arrangements?
What is the suggested classification for restricted deposits held as compensating balances against long-term borrowing arrangements?
How do companies classify receivables for financial statement purposes?
How do companies classify receivables for financial statement purposes?
What distinguishes accounts receivable from notes receivable?
What distinguishes accounts receivable from notes receivable?
How do companies typically collect accounts receivable?
How do companies typically collect accounts receivable?
What do non-trade receivables arise from?
What do non-trade receivables arise from?
How should overdrafts that do not meet specific conditions be reported?
How should overdrafts that do not meet specific conditions be reported?
What is the most significant item in a company's current assets according to the text?
What is the most significant item in a company's current assets according to the text?
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