31.Savings accounts are usually classified as cash on the statement of financial position.
32.Certificates of deposit are currently classified as cash on the statement of financial position.
33.Petty cash funds are not included in the cash balance reported on the statement of financial position.
34.A compensating balance is included in the amount of cash reported on the statement of financial position.
35.Because cash is the least liquid current asset it is listed last in the current assets section of the statement of financial position.
36.Short-term, highly liquid investments are currently reported as short-term investments on the statement of financial position.
37.Because cash is the most liquid current asset it is listed first in the current assets section of the statement of financial position.
38.Internal control consists of all the related methods and measures adopted within an organisation to safeguard its assets, enhance the reliability of its accounting records, increase efficiency of operations, and ensure compliance with laws and regulations.
39.In general, documents should be prenumbered and all documents should be accounted for.
40.Collusion may result when one individual circumvents prescribed controls and may significantly impair the effectiveness of a system.
41.Personnel who handle cash receipts should have the option of taking a vacation or not.
42.The duties of approving an item for payment and paying the item should be done by different departments or individuals.
43.The custodian of the petty cash fund has the responsibility of recording a journal entry every time cash is used from the fund.
44.A debit memorandum could show the collection of a note receivable by the bank.
45.To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by an employee who has no other responsibilities pertaining to cash.