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- Subject: FINANCIAL MANAGEMENT Answer the following questions: 1. Discussed in this chapter is the Imprest System. What is it and how does it help in managing the company's cash? 2. What is a compensating balance? Does it affect the company's disbursement policy? 3. In order to be classified as cash and cash equivalents, what are its requisites? Discuss each requisite briefly. See the attached link for reference: https://drive.google.com/file/d/1lT0HRXz4EKqT3le1AGT3oda98n3KCoQh/view?usp=drivesdk1. Explain why the system of internal control is important for a company. 2. Describe some internal control practices usually implemented by companies. 3. Explain why cash control is important. 4. What is a voucher? What information are contained in a voucher? 5. Describe the features of the voucher system in handling cash disbursements? 6. What is a voucher register? What purpose does it serve?This refers to a bank that has agreement with the clearinghouse to exchange checks. A. Commercial Bank B. Correspondent Bank C. Universal Bank D. Concentration Banking 2. Firms hold cash for the purpose of taking advantage of investment opportunities. A. Precautionary Motive B. Transaction Balance C. Compensating Balance D. Speculative Motive 3. This refers to the process of monitoring and analyzing the amount of cash needed and how it can be generated. A. Cash Monitoring B. Cash Balances C. Cash Management D. Cash Forecasting
- 27. Which of the following is/are helpful to control cash receipts of a company? a. Prepare a record of all cash receipts as soon as cash is received b. Deposit all cash receipts as soon as possible c. Encourage the cash receipts through cheque d. All the optionsQ. Define cash equivalents, and explain methods of controlling cash, including bank reconciliations.In business cash consist of many things. Identify which one of the following will be considered as cash? a. Post Dated Cheques. b. Credit card. c. Bank drafts. d. Travel Advance
- Match definitions with vocabulary terms) Use theseterms to complete the statements that follow. You can use a term more than once or not at all.Bank reconciliation Firewall Misappropriation of assetsCash equivalents Fraud triangle Outstanding checkController Fraudulent financial reporting PhishingDeposits in transit Imprest system Remittance adviceFidelity bond Internal control Treasurerh. The _____________________is typically responsible for cash handling and cash management.What are the four accounts that are typically affected by cash transactions. Please use the following illustration to help you answer this question.Select the banking terms from drop down to match with the correct definition. Definitions Banking Terms a. A check that has been paid by the bank on behalf of the depositor. select a banking term Automated teller machine (ATM)Electronic funds transfer (EFT)MakerDepositorDebit memorandumPayeeBank statementPayerCredit memorandumDeposit slipCheckCanceled checkSignature cardEndorsement b. A disbursement system that uses wire, telephone, or computers to transfer cash balances from one location to another. select a banking term EndorsementBank statementDeposit slipDebit memorandumCheckDepositorElectronic funds transfer (EFT)PayeeSignature cardPayerCanceled checkCredit memorandumAutomated teller machine (ATM)Maker c. A document provided by the bank that requires the signature of all authorized signers of checks. select a banking term…
- Why does cash require some specific internal controls?a. Most transactions ultimately affect cash.b. Cash is relatively easy to steal.c. Cash is easy to convert to other forms of wealth.d. All of the aboveExplain the three principal reasons organizations want to keep cash on hand or in bank accounts.1. During the reconciliation of the company’s cash account with its bank statement, what should the account holders look for?