WEEK 8

Fill in the blanks:

1. CASHINCLUDES coins, currency, and money orders, but not checks that become payable on a future date (known as POSTDATED CHECKS).

2. The CASH BUDGETIS a major component of a cash planning system, and represents the overall plan of activity that depicts cash inflows and outflows for a stated period of time.

3. Cash receipts should be deposited at the bank on a DAILY basis.

4. DEPOSITS IN TRANSIT arise when receipts have been entered on the company records but not as yet posted by the bank.

5. The bank reconciliation is based on the Cash account and a document called a BANK STATEMENT.

6. The receipts accumulated in a petty cash box are frequently called PETTY CASH VOUCHERS.

7. An investment in trading securities should be classified in CURRENT ASSET section of the balance sheet.

8. Trading securities should be measured and reported at MARKET value.

9. Unrealized gains and losses on trading securities impact INCOME.