QUIZ7
Question 1
1. Which of the following is not considered cash for financial reporting purposes?
A. Petty cash funds and change funds
B. Coin, currency, and available funds
C. Postdated checks and I. O. U.’s
D. Money orders, certified checks, and personal checks
5 points
Question 2
1. Travel advances should be reported as
A. supplies.
B. cash because they represent the equivalent of money.
C. investments.
D. none of these answers are correct.
5 points
Question 3
1. All of the following may be included under the heading of “cash” except
A. savings account balance.
B. currency.
C. money market funds.
D. checking account balance.
5 points
Question 4
1. In which account are postage stamps classified?
A. Receivables.
B. Cash.
C. Office supplies.
D. Inventory.
5 points
Question 5
1. What is a compensating balance?
A. Temporary investments serving as collateral for outstanding loans.
B. Savings account balances.
C. Minimum deposits required to be maintained in connection with a borrowing
arrangement.
D. Margin accounts held with brokers.
5 points
Question 6
