30.Which of the following statements relating to cash is INCORRECT? a. The presentation of the cash item must parallel the intention of the management for which cash is held. b. Cash funds that are intended for settlement of long-term obligations in the future qualify to be reported as part of the current assets. c. Cash deposits with banks that have been restricted for plant expansion are excluded from cash. d. Working funds segregated for current use in the ordinary conduct of business, such as petty cash fund and change fund, qualify as cash under current assets.

30.Which of the following statements relating to cash is INCORRECT? a. The presentation of the cash item must parallel the intention of the management for which cash is held. b. Cash funds that are intended for settlement of long-term obligations in the future qualify to be reported as part of the current assets. c. Cash deposits with banks that have been restricted for plant expansion are excluded from cash. d. Working funds segregated for current use in the ordinary conduct of business, such as petty cash fund and change fund, qualify as cash under current assets.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 8CYBK

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Question

30.Which of the following statements relating to cash is INCORRECT?

a. The presentation of the cash item must parallel the intention of the management for which cash is held.

b. Cash funds that are intended for settlement of long-term obligations in the future qualify to be reported as part of the current assets.

c. Cash deposits with banks that have been restricted for plant expansion are excluded from cash.

d. Working funds segregated for current use in the ordinary conduct of business, such as petty cash fund and change fund, qualify as cash under current assets.

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