Question 1
Which of the following cycles does
not affect cash in bank?
◦ capital acquisitions cycle
◦ inventory and warehousing
◦ payroll and personnel cycle
◦ acquisitions and disbursements
Question 2
Which of the following is an accurate statement regarding cash?
◦ The amount of cash flowing into and out of the cash account is often larger than that for any other account in the financial statements.
◦ The susceptibility of cash to embezzlement is greater than that for other types of assets.
◦ Auditors must verify whether recorded cash in the general ledger correctly reflects all cash transactions that took place during the year.
◦ All of these are accurate statements.