Cash

Cash

On Your Test

You will be expected to know the following for multiple choice concept questions. Almost all questions will relate to these things:

What is considered cash

What is considered a cash equivalent

What activities are considered to be part of cash management

What is required for good internal controls related to cash

When is the bank statement prepared and what does it accomplish

What is typically recorded in the general ledger and what is recorded by the bank before the bank reconciliation is completed and adjustments are made

What is an “outstanding check”, “deposit in transit”, “NSF check”, “auto transaction”

You will be asked to do the following on problems and multiple-choice problems that require calculations. It boils down to this:

Prepare the bank reconciliation

Determine which amounts will be recorded in the general ledger cash column and which amounts will be recorded in the bank column

Record the entry to adjust cash to the correct balance