ACCY 131 CH 13 AUDITING CASH REVIEW UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
1. Cash and cash equivalents typically include
Answer:
A. cash in the bank
B. imprest accounts, such as a payroll account
C. cash equivalents, such as money market funds
Question:
2. Cash equivalents include
Answer:
A. short-term time deposits
B. certificates of deposits
C. short-term government bonds
Question:
1. Top performing companies within an industry generate
significant free cash flow and_______.
Answer:
are more likely to have significant balances of cash and cash equivalents
Question:
1. Management's operating, investing, and financing
decisions and strategies _______.
Answer:
significantly affect cash balances
Question:
1. Cash receipts and disbursement transactions _______.
Answer:
B. are subject to increased inherent risk
Question:
1. The most important control over the existence,
completeness, and valuation of cash balances _______.
Answer:
C. is an independent bank reconciliation
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
1. Cash and cash equivalents typically include
Answer:
A. cash in the bank
B. imprest accounts, such as a payroll account
C. cash equivalents, such as money market funds
Question:
2. Cash equivalents include
Answer:
A. short-term time deposits
B. certificates of deposits
C. short-term government bonds
Question:
1. Top performing companies within an industry generate
significant free cash flow and_______.
Answer:
are more likely to have significant balances of cash and cash equivalents
Question:
1. Management's operating, investing, and financing
decisions and strategies _______.
Answer:
significantly affect cash balances
Question:
1. Cash receipts and disbursement transactions _______.
Answer:
B. are subject to increased inherent risk
Question:
1. The most important control over the existence,
completeness, and valuation of cash balances _______.
Answer:
C. is an independent bank reconciliation
