Cash
On Your Test
Introduction to Accounting
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