Question 1

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Money earned on the average daily balance of the checking account.

Accepted Answer

Interest earned is the money earned on the average daily balance of the checking account. The other options are:
A) Bank service fees: charges incurred for bank services 
B) Deposits outstanding: deposits that have not yet been credited to the account 
D) NSF checks: checks that have been returned due to insufficient funds 
E) Company error: mistakes made by the bank 
F) Checks outstanding: checks that have been written but not yet cleared or processed.

Question 2

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Purchase equipment.

Accepted Answer

Purchasing equipment is considered a cash outflow from investing activities as it involves spending cash to acquire long-term assets.

Question 3

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Checks written by the company but not yet recorded by the bank.

Accepted Answer

Checks written by the company but not yet recorded by the bank are referred to as "checks outstanding." These are checks that have been issued by the company but have not yet been cleared or processed by the bank.

Question 4

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ The company recorded a deposit twice.

Accepted Answer

The phrase "The company recorded a deposit twice" implies an error made by the company. Therefore, the best choice would be E) Company error.

Question 5

Listed below are five terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Withdraws funds directly from the user's account at the time of use.

Accepted Answer

Debit cards withdraw funds directly from the user's account at the time of use. Cash equivalent refers to any asset that can be easily converted to cash, Bank reconciliation is the process of comparing a company's bank statement with its own financial records, Petty cash is a small amount of cash that a company keeps on hand for daily expenses, and Credit cards allow users to borrow money to make purchases and pay back the debt over time.

Question 6

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Cash receipts received by the company but not yet recorded by the bank.

Accepted Answer

Deposits outstanding refers to cash receipts received by the company but not yet recorded by the bank. Bank service fees refer to fees charged by the bank for services provided. Interest earned refers to interest earned on bank accounts. NSF checks refer to checks that were not honored by the bank due to insufficient funds. Company error refers to errors made by the company in recording transactions. Checks outstanding refer to checks that have been written by the company but not yet cleared by the bank.

Question 7

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Receive payment from customers.

Accepted Answer

"Receive payment from customers" is a typical description of cash inflow from operating activities, as this represents the cash generated from the company's core operations, such as sales.

Question 8

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Fees imposed by the bank to the company for providing routine services.

Accepted Answer

The phrase "fees imposed by the bank for providing routine services" matches with "bank service fees".

Question 9

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Sell office building.

Accepted Answer

Selling an office building would result in a cash inflow, which would be categorized as a cash inflow from investing activities.

Question 10

Listed below are five terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Allows users to purchase items without having to pay cash immediately.

Accepted Answer

The phrase "Allows users to purchase items without having to pay cash immediately" refers to a credit card, as users are able to make purchases on credit and pay for them at a later date.

Question 11

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Issue common stock.

Accepted Answer

Issue of common stock is a type of financing activity which results in a cash inflow for the company.

Question 12

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Checks written to the company that are returned by the bank as not having adequate funds.

Accepted Answer

The term that matches the description is "NSF checks", which refers to checks that are returned by the bank as not having adequate funds.

Question 13

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Pay salaries to employees.

Accepted Answer

Paying salaries to employees would result in a cash outflow from operating activities, as it is a regular expense incurred in the course of business operations. The other options listed are not applicable to this scenario.

Question 14

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Pay dividends to stockholders.

Accepted Answer

Paying dividends to stockholders is considered a cash outflow from financing activities because it involves distributing profits to shareholders, which is a financing decision.

Quiz 4: Cash and Internal Controls

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Money earned on the average daily balance of the checking account.

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Purchase equipment.

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Checks written by the company but not yet recorded by the bank.

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ The company recorded a deposit twice.

Listed below are five terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Withdraws funds directly from the user's account at the time of use.

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Cash receipts received by the company but not yet recorded by the bank.

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Receive payment from customers.

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Fees imposed by the bank to the company for providing routine services.

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Sell office building.

Listed below are five terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Allows users to purchase items without having to pay cash immediately.

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Issue common stock.

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Checks written to the company that are returned by the bank as not having adequate funds.

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Pay salaries to employees.

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided. -____ Pay dividends to stockholders.