Question : 121. The type of account and normal balance of Petty Cash : 1247174

121. The type of account and normal balance of Petty Cash is a(n)  
A. revenue, credit
B. asset, debit
C. liability, credit
D. expense, debit

122. The debit recorded in the journal to reimburse the petty cash fund is to  
A. Petty Cash
B. Accounts Receivable
C. Cash
D. various accounts for which the petty cash was disbursed

123. A $100 petty cash fund contains $89 in petty cash receipts, and $7.50 in currency and coins.  The journal entry to record the replenishment of the fund would include a  
A. credit to Petty Cash for $96.50.
B. credit to Cash for $89.
C. debit to Cash Short and Over for $3.50.
D. credit to Cash Short and Over for $3.50.

124. A $140 petty cash fund has cash of $18 and receipts of $120.  The journal entry to replenish the account would include a credit to 
A. Cash for $120.
B. Cash Over and Short for $2.
C. Petty Cash for $122.
D. Cash for $122.

125. Cash equivalents include  
A. checks
B. coins and currency
C. money market accounts and commercial paper
D. stocks and short-term bonds

126. Cash equivalents  
A. are illegal in some states
B. will be converted to cash within two years
C. will be converted to cash within 90 days
D. will be converted to cash within 120 days

127. A minimum cash balance required by a bank is called  
A. cash in bank
B. cash equivalent
C. compensating balance
D. EFT

128. During 2009, Tempo Inc has monthly cash expenses of $120,000.  On December 31, 2009, their cash balance is $1,860,000.  The ratio of cash to monthly cash expenses is  
A. 6.5
B. 15.5
C. 77.4
D. 12.0

129. During a bank reconciliation process, 
A. Outstanding checks and deposits in transit are added to the bank statement balance.
B. Outstanding checks are subtracted and deposits in transit are added to the bank statement balance.
C. Outstanding checks and deposits in transit are subtracted from the bank statement balance.
D. Outstanding checks are added and deposits in transit are subtracted to the bank statement balance.

130. In the normal operation of business you receive a check from a customer and deposit it into your checking account. With your bank statement you are advised that this check for $425 is “NSF”. The bank also informs you that due to the amount of activity on your business account the monthly service charge is $45.  During a bank reconciliation: 
A. subtract both values from balance according to bank.
B. add both values from balance according to books.
C. add both values from balance according to bank.
D. subtract both values from balance according to books.

131. Which of the following would not be included with the Cash and Equivalents on the Balance Sheet? 
A. Commercial Paper
B. Short-Term Receivables
C. Certificates of Deposit
D. Money Market Mutual Funds

132. Identify each of the following as relating to (a) the control environment, (b) risk assessment, or (c) control procedures.

1.  Mandatory vacations
2.  Personnel policies
3.  Report of outside consultants on future market changes 

1.  (c) control procedures
2.  (a) the control environment
3.  (b) risk assessment