Chapter 7, Problem 7.34E

Which of the following is considered cash? a. Thirty-day certificate of deposits b. Customer’s post-dated checks c. Six-month money market savings certificates d. Money market checking accounts

1. Efficient management of cash includes which of the following concepts? A. Pay cach bill as soon as the invoice is received. B. Deposit all cash receipts and make all cash disbursements at the end of each week. C. Prepare monthly cash budgets (forecasts). D. Pay suppliers in cash out of cash sales receipts before depositing them in the bank. 2. Following the completion of the bank reconciliation, an adjusting entry was made that debited cash and credited Interest Revenue. Therefore the bank reconciliation must have included an item that was A. added to the balance per bank statement. B. added to the balance per depositor's records. C. deducted from the balance per bank statement. D. deducted from the balance per depositor's records. 3 A company uses the income statement approach to account for uncollectible accounts. When the firm writes off a specific customer's account receivable, A. total current assets are reduced. B. total expenses for the period are increased. C. total current…

Which of the following practices contributes to efficientcash management? a. Never borrow money—maintain a cash balance suffi-cient to make all necessary payments. b. Record all cash receipts and cash payments at the endof the month when reconciling the bank statements.c. Prepare monthly forecasts of planned cash receipts,payments, and anticipated cash balances up to a year inadvance.d. Pay each bill as soon as the invoice arrives.