Chapter 23

Question 1

general cash account

Answer 1

the focal point of cash for most organizations because virtually all cash receipts and disbursements flow through this account

Question 2

branch bank accounts

Answer 2

useful for building banking relations in local communities and permitting the centralization of operations at the branch level

Question 3

imprest petty cash fund

Answer 3

similar to cash in the bank

Question 4

cash equivalents

Answer 4

cash equivalents

Question 5

financial instruments

Answer 5

accounts include investments in marketable securities such as debt and equity securities, derivative instruments, and hedging activities

Question 6

bank reconciliation

Answer 6

essential control over the ending cash balance

Question 7

standard bank confirmation form

Answer 7

agreed form to confirm bank account

Question 8

cutoff bank statement

Answer 8

a partial period bank statement and the related copies of or digital access to cancelled checks, duplicate deposit slips, and other documents included in bank statements

Question 9

proof of cash

Answer 9

includes the following four reconciliation tasks:

1. Reconcile the balance on the bank statement
2. Reconcile cash receipts deposited per the bank with receipts recorded in the cash receipts journal for a give period
3. reconcile electronic payments and cancelled checks clearing the bank with those recorded in the cash disbursements journal for a given period
4. reconcile the balance on the bank statement with the general ledger balance at the end of the proof of cash period

Question 10

kiting

Answer 10

transferring money from one bank to another and incorrectly recording the transaction

Question 11

proof of cash

Answer 11

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