The following statements relate to cash. Which statement is false? O Legally restricted compensating balances required by a bank should always be excluded from "cash and cash equivalent. O Classification of a restricted cash balance as current or noncurrent should be not parallel to the classification of the related obligation for which the cash was restricted. The term cash can refer to demand credit instruments such as money order and bank drafts. The purpose of establishing a petty cash fund is to keep enough cash for small recurring operating expenses for a period of time.

Q: The following are the reasons for dissimilarity between balances in the bank statement and the cash…

A: Dissimilarity between bank statement and cash book occurs due to various factors like Dishonored…

Q: The petty cash fund eliminates the need for a bank checking * .account

A: First-in-First-Out (FIFO): In this method, items purchased initially are sold first. So, the value…

Q: Identify each of the following reconciling items as part of the cash reconciling process as: (A)…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: Which of the following does not show good cash management regarding the controls over cash…

A:

Q: cash balance

A: If the cash balance shown in the company’s cash records is more than the correct cash balance and…

Q: Which one of the following statements is true? a.The person handling the cash should also prepare…

A: Bank Reconciliation shows cash balance in the books should always reconcile with bank balance in the…

Q: Which of the following items should not be included in the Cash? O A. Petty cash and change funds…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: Which of the following is a reason that businesses use bank accounts as part of their internal…

A: Internal control system is a preventive measure used by the company to stop the frauds and errors…

Q: ifferences between the amount of cash reported on a company’s bank statement and the balance in the…

A: Bank reconciliation statement is prepared where an entry which is found in one book (Cash book or…

Q: S1: Bank reconciliation is important because it is an opportunity to check for fraudulent activity…

A: Solution: Given 4 statement are related to cash and bank reconciliations. Correctness of these…

Q: The petty cash fund eliminates the need for a bank checking account

A: A petty cash fund is a small amount of money that an organization keeps on the premises to pay for…

Q: Which of the following are characteristics of an effective control of cash disbursements? I.…

A: Solution: Following are the characteristics of an effective control of cash disbursements: I.…

Q: The auditor would like to determine any cash restriction. Which of the following audit procedures…

A: Audit Procedure: In the context of financial statements, audit procedures are the steps taken by…

Q: bank balance in the cash book and that of the bank statement

A: Bank balance in cash book means amount of balance of bank ledger in the books of the entity/person…

Q: Cash on the Balance Sheet does not include: Multiple Choice Cash in the bank, Petty cash. Short-term…

A: Cash is an asset that is reported as a current asset on balance sheet. Cash account refers to those…

Q: List two items often encountered in reconciling a bank state-ment that may cause cash per the bank…

A: Firm records every transaction in its cash book. Bank also open ledger account for that firm. The…

Q: Which of the following statements is not a good internal control for petty cash.    a. The officer…

A: The internal control for petty cash funds is applied to prevent petty cash frauds in the company.

Q: Explain with figures why your company’s cash book balance will not agree with the bank statement…

A: Explain with figures why your company’s cash book balance will not agree with the bank statement…

Q: The bank reconciliation ? Please explain with full explanation.  a. should be prepared by an…

A: Following is the answer to given problem

Q: Cash control systems are the methods and procedures used to ensure --   a. That current obligations…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: The bank balance in the cash book and that of the bank statement may disagree because of…

A: The bank reconciliation statement is prepared to adjust the balances of cash book and pass book to…

Q: Which of the following items would normally be EXCLUDED from the amount to be reported as cash on a…

A: Statement of financial position is the one on which the company's assets and liabilities are…

Q: Part II Preparing the bank reconciliation is considered to be an important step in the internal…

A: Bank Reconciliation Statement is the statement which shows the differences between the bank balance…

Q: A cash payment under a good control system will have. а. Too much amount Bank book balance b.…

A: Under a good cash disbursement control system all payments are to be authorized and must be approved…

Q: Effective cash management and control includes all of the following except: a.purchase of shares…

A: Effective cash management includes maintaining adequate levels of cash to meet the entity's capital…

Q: Which of the following statements is false? a. Legally restricted bank deposits held as compensating…

A: Cash and Cash Equivalents Here is related to the Cash and its Equivalents which are relation with…

Q: Which item is not considered cash and cash equivalents on the balance sheet? a. Unrestricted funds…

A: Cash equivalents are the near-cash items, which are readily convertible into cash. Cash equivalents…

Q: Which of the following does not show good cash management regarding the controls over cash…

A: Segregate duties The foundation of a good internal control system is segregation of duties. The…

Q: why is petty cash fund deducted in the book balance of the entity when making bank reconciliation?

A: A petty cash fund is a fund where some money is kept separately to pay for minor expenses such as…

Q: A cash payment under a good control system will have. a. Too much amount Bank book balance b.…

A: The concept of segregation of duties refers to the need for more than one person to execute a task.

Q: The accounting clerk pays all obligations by pre numbered checks. What are the strengths and…

A: It was must obligatory  in the internal control over by the cash payments which are taken care by…

Q: Evaluate the following statements Statement 1: Under the punctuating system of petty cash…

A: Cash and cash equivalents is one of the items recorded as a current asset in the balance sheet of an…

Q: Which one of the following statements is true? a.Good cash management practices dictate that a…

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: If the cash balance shown on the entity is accounting records is less than the correct each balance…

A: Answer

Q: Which of the following statements is false with regard to a Cash Receipts Journal?:   All receipts…

A: Step 1 Cash receipts journal is the book where all the cash receipts are recorded whatsoever source…

Q: Knott Inc. has a petty cash fund of $750. (a) Since the petty cash fund is only $750, should Knott…

A: Petty cash fund: It is a fund established to pay insignificant amounts like postage, office supplies…

Q: Which of the following is not considered cash for financial reporting purposes? a. Petty cash and…

A: according to the rule, because you have posted multiple questions, we will answer the first question…

Q: why control over receivables is not quite as important as control over cash

A: Accounts receivables reflect the amount owed by the credit buyers of an organization. In simple…

Q: Why is the monthly reconciliation of bank accounts by an independent person an important internal…

A: Bank reconciliation statement is an important tool for internal control and it is prepared at the…

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.