AP.M-1402 (AUDIT OF CASH) MULTIPLE CHOICE QUESTIONS-THEORY 1. Which of the following is not an audit objective related to cash? a. Reported cash exists b. The client has ownership rights in the reported cash. c. Compensating cash balances are reported as other assets. d. The reported cash balance includes all cash transaction that should have been recorded. 2. The process of transferring money from one bank account to another and improperly recording the transaction a. Lapping b. Embezzling c. Kiting d. Defalcation 3. An auditor who is engaged to examine the financial statements of a business enterprise will request a cut-off bank statement primarily in order to a. Verify the cash balance reported on the bank confirmation inquiry form. b. Verify reconciling items on the client’s bank reconciliation. c. Detect lapping d. Detect kiting 4. To gather evidence regarding the balance per bank in a bank reconciliation, an auditor would examine all of the following except a. cut-off bank statement b. bank confirmation c. year-end bank statement d. general ledger 5. The auditor should ordinarily mail confirmation requests to all banks which the client has conducted any business during the year, regardless of the year-end balance, since a. The confirmation form also seeks information about indebtedness to the bank. b. This procedure will detect kiting activities which would otherwise not be detected. c. The mailing confirmation forms to all such banks are required by PSA. d. Tis procedure relieves the auditor of any responsibility with respect to non-detection of forged checks. 6. Which of the following sets of information does an auditor usually confirm on one form? a. Accounts payable and purchase commitments. b. Cash in bank and collateral for loans. c. Inventory on consignments and contingent liabilities. d. Accounts receivable and accrued interest receivable 7. In October, three months before year-end, the bookkeeper erroneously recorded the receipt of a one year bank loan with a debit to cash and credit to miscellaneous revenue. Select the most effective method for detecting this type of error. a. Foot the cash receipts journal for October b. Send a bank confirmation as of the year-end c. Prepare bank reconciliation as of the year-end.
d. Prepare a bank transfer schedule as of the year-end 8. Which of the following error will be discovered as a result of the audit of the bank reconciliation? a. Failure to record bank deposits b. Billing customer for an improper amount c. Payment for raw materials that were not received d. Payment of interest to an affiliate for an amount in excess of the existing rate 9. An auditor ordinarily sends a standard confirmation request to all banks with which the client has done business during the year under audit, regardless of the year-end balance. A purpose of this procedure is to a. Provide the data necessary to prepare a proof of cash b. Request that cut-off bank statement and related checks be sent to the auditor. c. Detect kiting activities that may otherwise no bet discovered. d. Seek information about other deposit and loan amounts that come to the attention of the institution in the process of completing the confirmation 10. As one of the year-end audit procedures, the auditor instructed the client’s personnel to prepare a standard bank confirmation request for a bank account that had been closed during the year. After the client’s treasurer had signed the request, it was mailed by the assistant treasurer. What is the major flaw in this audit procedure? a. The confirmation request was signed by the treasurer b. Sending the request was meaningless because the account was closed before the yearend c. The request was mailed by assistant treasurer. d. The CPA did not sign the confirmation request before it was mailed. 11. The auditors’ count of cash should be coordinated with the: a. Consideration of the internal controls with respect to cash. b. Close business on the balance sheet date c. Count of marketable securities d. Count of inventories 12. The receipt of the completed standard bank confirmation form would provide the auditor with all of the following items except a. The balances in all bank accounts with that bank b. Any restrictions on withdrawals c. The adjusted cash balances d. Loan balances with that bank 13. An auditor should trace bank transfers for the last part of the audit period and first part of the subsequent period to detect whether a. The cash receipts journal was held open for a few days after year-end. b. The last checks recorded before the year-end were actually mailed by the year-end c. Cash balances were overstated because of kiting. d. Any unusual payments to or receipts from related parties occurred.
***The information below was taken from the bank transfer schedule prepared during the audit of BAY Co.’s financial statement for the year ended December 31, 2013. Assume all checks are dated and issued on December 30, 2013. Check no. 101 202 303 404
From National Country Federal State
To Federal State American Republic
Disbursement date Per books Per bank Dec. 30 Jan.4 Jan.3 Jan.2 Dec. 31 Jan.3 Jan. 2 Jan.2
Receipt date Per books Dec.30 Dec.30 Jan.2 Jan.2
Per bank Jan. 3 Dec.31 Jan. 2 Dec.31
14. Which of the above checks might indicate kiting? a. #101 and #303 b. #202 and #404 c. #101 and #404 d. #202 and #303 15. A cash shortage may be concealed by transporting funds from one location to another or by converting negotiable assets to cash. Because of this, which of the following is vital? a. simultaneous confirmations b. simultaneous bank reconciliations c. simultaneous verifications d. simultaneous surprise cash count. 16. When negotiable instrument securities are of considerable volume, planning by the auditor is necessary to guard against a. Unauthorized negotiation of the securities before they are counted. b. Unrecorded sales of securities after they are counted. c. Substitution of securities already counted for other securities which should be on hand but are not. d. Substitution of authentic securities with counterfeit securities. 17. A client has large and active investment portfolio that kept in bank safe deposit box. If the auditor is unable to count the securities at the balance sheet date, the auditor most likely will a. Request the bank to confirm to the auditor the contents of the safe deposit box at the balance sheet date. b. Examine supporting evidence for transactions occurring during the year. c. Count the securities at the subsequent date and confirm with the bank whether securities were added or removed since the balance sheet date. d. Request the client to have the bank seal the safe deposit until the auditor can count the securities at a subsequent date. 18. By preparing a four-column reconciliation (“proof of cash”) for the last month of the year, an auditor will generally be able to detect: a. An unrecorded check written at the beginning of the month which was cashed during the period covered by the reconciliation. b. A cash sale which was not recorded on the books and was stolen by a bookkeeper
c. An embezzlement of unrecorded cash receipts on receivables before they had been deposited into the bank. d. A credit sale which has been recorded twice in the sales journal. 19. Jones embezzled P10, 000 from his company’s account in Bank A. At year-end he did the shortage by making a deposit on December 31 in Bank A, drawn on Bank B. He has not recorded the transaction on the books. This an example of a. Lapping b. Effective cash management c. Kiting d. Related party transactions 20. Which of the following is most likely to be effective in detecting kiting? a. Bank confirmation b. Bank transfer schedule prepared using only the cash receipts and cash disbursements journals c. Comparison of bank cut-off statement to the cash receipts and disbursements records d. Receivable confirmation 21. Which of the following manipulations of cash transactions would overstate the cash balance on the financial statements? a. Understatement of outstanding checks b. Overstatement of outstanding checks c. Understatement of deposit in transit d. Overstatement of deposit in transit 22. The standard form to confirm account balances with Financial Institutions includes information on all of the following except: a. Date due of direct liability b. The principal amount paid on direct liability c. Description of collateral for direct liability d. The interest date of the direct liability 23. Which of the following is one of the better auditing techniques that might be used by an auditor to detect kiting? a. Review composition of authenticated deposit slips b. Review subsequent bank statements and cancelled checks received directly from the banks c. Prepare a schedule of bank transfers d. Prepare year-end bank reconciliations 24. On receiving the bank cut-off statement, the auditor should trace: a. Deposits in transit on the year-end bank reconciliation to deposits in the cash receipts journal b. Checks dated prior to year end to the outstanding checks listed on the year-end reconciliation c. Deposits listed on the cut-off statement to deposits in the cash receipts journal d. Checks dated subsequent to year end to the outstanding checks listed on the year-end bank reconciliation 25. Which of the following cash transfers result in a misstatement of cash at December 31, 2011?
A. B. C. D.
Disbursement Recorded in Paid by bank books 12/31/11 01/04/12 01/04/12 01/05/12 12/31/11 01/05/12 01/04/12 01/11/12
Receipts Recorded in Received by books bank 12/31/11 12/31/11 12/31/11 12/31/11 12/31/11 01/04/12 01/04/12 01/04/12
STRAIGHT PROBLEMS PROBLEM 1 The cash and cash equivalents account in the ledger of Ajalon Company had a balance of P5, 935, 000 at December 31, 2014. An examination of the account, however, disclosed the following. 1. Current account at May bank 2. Current account at DBP 3. Payroll account 4. Saving account in rural bank 5. Treasury warrants 6. Treasury note, due November 30, 2015 7. Change fund 8. Credit memo from a vendor for purchase return 9. Traveller’s check 10. Customer’s checks returned by the bank marked “DAIF” 11. Money order 12. Petty cash fund
P 200, 000 (100, 000) 500, 000 1, 000, 000 200, 000 400, 000 10, 000 20, 000 50, 000 15, 000 30 , 000 10, 000
13. Treasury note, due 2/28/15 14. Treasury bills, due 1/31/15 15. Cash sinking fund 16. Preferred redemption
200, 000 300, 000 500, 000 800, 000
Audit notes: a. Rural Bank was closed two years ago. The company expects to recover only P0. 60 for every peso deposited. b. This amount includes unreplenished vouchers totalling P7, 000 as of December 31, 2014. c. This is a two-year treasury note acquired on December 31, 2014. d. This a 180-day treasury bill acquired on July 31, 2014. Required: How much should Ajalon Company report as cash and cash equivalent on its December 31, 2014 balance sheet? P2, 993, 000
PROBLEM 2 The auditor for Diadem Jade Company examined the office cash working fund immediately after the close of the business June 30, 2014, the end of the company’s fiscal year. The following fund composition was arrived at: Currency
P972
Unreplenished vouchers: Supplies
338
Transportation
240
Repairs
170
Advances to office employee
400
Check drawn by Diadem Jade Co. payable to Jap, cash custodian
1, 100
A check prepared by an employee payable to Diadem Jade Co.
230
A sheet of paper bearing the signatures of several employees,
together with their contributions (total P500) for a gift to a departing employee. Attached to the paper is currency of
500
The cash working fund has an imprest of P4, 000. Required: 1. Compute the amount of cash shortage. P500 2. Adjusting entries on June 30, 2014. Supplies expense 388 Transportation expense 240 Repair expense 170 Advances of office employee 400 Cash in bank Receivable- custodian Cash working fund
Advances of office employee Cash working fund
1198 500 500 230 230
PROBLEM 3 The following cash count sheet and additional information pertain to the accounts of Brewer Corporation for the year ended December 31, 2014. Cash count date: December 16, 2014 Currency- Details omitted
4, 800
Unreplenished petty cash vouchers Vouchers date
Explanation
11/20/2014
postage stamps
100
12/04/2014
repair of typewriter
150
12/12/2014
transportation-messenger
60
12/15/2014
office supplies
90
400
Advances – all properly approved
500
Total amount counted
5, 750
Accountability: Petty cash fund
1, 000
Undeposited collections
4, 900
5, 900
Shortage
150
Additional information: 1. The last replenishment of the fund was made on December 14, 2014 cocering the period from December 1 to 14, 2014. 2. Found inside the cash box were two pay envelopes which had been opened and the contents aggregating P240 removed. The face of the envelope bore the notation “unclaimed”. Required: Compute the amount of cash shortage. P750
PROBLEM 4 You are examining the accounts of Joash Beauty Salon. Your count of the imprest cash fund, made at 9:00 a.m. on January 2, 2014, in the presence of Joezer petty cashier, revealed: Coins Quantity
Bills
Denominations
Quantity
Denominations
32
P 1. 00
4
500
40
0.25
3
100
10
20
15
10
Checks: Date December 27 30
Payee
Maker
Amount
Cash
Manso, Beautician
P 5, 000
Joezer’s
Raymund, Hairdresser
6, 100
30
Joezer’s
Andrew, customer
6, 500
Unpaid stamps: Various denomination
P 80
Vouchers: Date
Nature of Disbursements
December 15
transportation
65
16
office supplies
70
17
xerox fees
80
28
postage
150
2
newspaper
10
2
freight charges
50
January
IOUs Date
Maker
December 20
Monterola, employee
50
Escala, salesman
100
23
The balance of the petty cash account, December 31, 2013, was P 5, 000. Sales invoices (for cash sales, all in cash, no checks) Invoices #2007
December 30
4, 000
#2008
December 31
5, 100
#2009
January 2
3, 050
Required: Compute the amount of cash shortage. P2, 767
PROBLEM 5 Charlene Company’s cash ledger on June 30, 2014 showed a balance of P936, 000 which include total deposits of P490, 000 Your audit of the cash account revealed the following: I. II. III.
IV. V.
Outstanding checks amounted to P29, 000 while deposit in transit totalled P98, 000. NSF checks of P56, 000 had been returned by the bank and were not yet reflected in the books of the company. Total debits in the bank statement for June amounted to P398, 000 which included the NSF checks in letter II above, and service fees of P10, 000. The services were recorded in the conpany’s books in the succeeding month. Sandy Company’s check of P15, 000 was charged by the bank to Charlene company’s account. A check of P90, 000 is issued by Charlene company was recorded in its books as P120, 000.
Charlene company’s cash ledger on June 30, 2014 showed a balance of P936, 000 which include total deposits of P490, 000. Required: Based on the results of your audit, determine the following: 1. 2. 3. 4.
What is the adjusted cash balance on June 30, 2014? P900 What is the cash balance per bank statement on June 30, 2014? P816 What is the shortage or overage on June 30, 2014? 0 What is the correct total debit in the reconciliation for the bank side on June 30, 2014? P412, 00 5. What is the total credit adjustment on the Company’s cash records on June 30, 2014? P36, 000 PROBLEM 6 The Nano Company did not exercise adequate internal control over its cash transactions. During an audit, you found the following data concerning the cash position as of June 30, 2014. On the company’s record the balance of cash on hand and in bank was P34, 700. A credit of P500 for a note collected by the bank does not appear on the company’s records. The bank statement balance is P27, 000. Outstanding checks are as follows: Number 1972
Amount P1, 040
1973
720
1974
816
1975
692
The cashier prepared the following reconciliation: Balance per bank statement
P27, 000
Deduct: Outstanding checks No. 1973
P 720
No. 1974
816
No. 1975
692
2,028
P24, 972 Add: Cash on hand (this count is correct) Collected note
P9, 228 500
Cash per company records, June 30, 2014
9,728 P34, 700
Required: 1. What is the amount of shortage? P2,240 2. How did the cashier attempt to conceal the shortage? By understating the outstanding checks by 1, 240 Improper treatment of the CM (500*2) PROBLEM 7 You are engaged to audit the books of HEIDY ENTERPRISES. From the records of the company, you gathered the following information: HEIDY ENTERPRISES started operation on October 2, 2014 with HEIDY investing P 150, 000 cash. Monthly bank reconciliation statements have not been prepared; however, bank statements for October, November, and December were made available to you. The bank statement in December 2014, showed an ending balance of P30, 500.
Examination of the paid checks disclosed that checks totalling P4, 500 were issued by the company in December 2014, and were presented for payment only in January 2015. Cash Count of the cashier’s accountability amounted to P8, 500. You were told by the cashier that P5, 000 of these, in checks, were cash sales on December 29, 2014 deposited on January 3, 2015. The balance, in currency and coins, represents petty cash fund. Additional data: 1. Accounts receivable subsidiary ledgers had a total balance of P70, 000 at December 31, 2014. 2. Supplier’s unpaid invoices for merchandise totalled P60, 000. 3. The bank statement in October showed a bank credit for P98, 000, dated October 2, 2014. Inquiry from the cashier disclosed that the amount represents proceeds of a 90-day, discounted bank note. P80, 000 of this loan was paid by check in December, 2014. 4. Merchandise inventory at December 31, 2014 amounted to P30, 000. 5. Operating expenses paid during the period totalled P180, 000; while merchandise purchases amounted to P250, 000. 6. The gross profit rate is 40%.
Required: Compute the cash shortage at December 31, 2014.
PROBLEM 8 Data for the ERNEL COMPANY are assembled as follows:
Cash account balance Bank statement balance Deposit in transit Checks outstanding BSC for month, not shown on the company books Bank charges for N.F checks, not shown on the company books Collections by bank from ERNEL company customers, not shown on the company’s books
11/31/2014 12/31/2014 P 1, 000 P 3,790 6, 690 10, 350 400 600 1, 300 1, 500 10 40 200 300 5, 000 6, 00
Tapes for bank statement and company cash data offer the following totals: Deposit and credit memos per bank statement
P 13, 800
Cancelled checks and debit memos per bank statement
10, 140
Cash receipts per cash book
8, 000
Cash disbursement, per book
10, 000
REQUIRED: Prepare a reconciliation of receipts, disbursements, and bank balance for December.
PROBLEM 9 You have been instructed by your supervisor on an audit of ROBERT Company to prepare a four-column proof of cash receipts and disbursements for the month of June 2014. The bank reconciliation statement prepared by the client in May is reproduced below: May, 2014 Reconciliation Bank balance
32, 600
Book balance
Plus Undeposited Collections
500
Plus proceeds of notes
5/31
28,540
received collected by the bank in
Total
33, 100
Less Outstanding Checks 140
P 500
152
400
153
100
May
3, 500
Plus deposit made in bank on May 31 not recorded on books until June 1, 000
Total
100 32, 140
Adjusted Bank Balance
32, 100
Less May bank service charges Adjusted book balance
40 32, 100
Upon inquiry about the client’s June 30 bank reconciliation, you were informed that it has been lost and that the client is too busy at this time to prepare another. Your supervisor tells you to get the June bank statement and paid checks and to prepare the June 30 reconciliation so that you may complete the June proof of cash. The June bank statement is reproduced below:
The Philippine National Bank Account of: ROBERT Company DATE DISBURSEMENTS RECEIPTS June 1 400 500 June 7 100 June 10 700 1,000 June 15 200 June 20 600 2, 800 June 27 900 June 29 100 E 100 EC June 30 10 SC June30 150 DM SC-Service charge
E-Error
EC-Error corrected
DM-Debit Memo
The Debit memo on June 30 represents customer NSF check returned by the bank. The check was redeposited by the client in the bank on July 1. Cash received for the period June 21 through June 30 of P3, 500 was deposited in the bank on July 1.
The paid checks accompanying this bank statement (all clearing in June) were: No. 152
P 400
No. 154
P 700
No. 157
P 600
No. 153
P 100
No. 155
P 200
No. 158
P 900
The check register revealed that the last check in June was No. 159 for P250 and that Check no. 156 was for P 130. REQUIRED: a. Unadjusted Book Disbursements in June 30, 2014. b. Unadjusted Book Receipts in June 30, 2014. c. Unadjusted book balance as of June 30, 2014.
PROBLEM 10 Comparative balance sheets for 2014 and 2013 and an income statement for 2014 are provided below for Angelita Company. Additional information from the accounting records of Angelita is provided.
Angelita Company BALANCE SHEETS December 31, 2014 and 2013 (P in 000) Assets: Cash
2014
2013
P 1, 800
P1, 125
Accounts receivable
1, 800
1,350
Inventory
2, 700
1,575
Land
2,025
1, 800
Building
2,700
2,700
Less: Accumulated Depreciation
(900)
(810)
Equipment
8, 550
6, 750
Less: Accumulated Depreciation
(1,575)
(1,440)
Patent
3,600
4,500
P20, 700
P17, 550
Accounts payable
P 2, 250
P1, 350
Accrued expenses payable
900
675
Lease liability-land
450
0
Liabilities:
Stockholder’s equity Common stock
9, 450
9, 000
Paid-in-capital excess of par
2,250
1, 350
Retained earnings
5, 400
4, 500
P20, 700
P17, 550
Angelita Company Income Statement For the year ended December 31, 2014 (P in 000) Revenues: Sales Revenue Gain sale of land
P7, 935 270
Expenses: Cost of goods sold Depreciation expense-building
P1, 800 90
P8, 205
Depreciation expense-equipment
945
Loss on sale of equipment
45
Amortization of patent
900
Operating expenses
1, 500
5, 280 P2, 925
Additional information from the accounting records: a. During 2014, equipment with a cost of P900, 000 (90% depreciated) was sold. b. The Retained Earnings account shows charges of P 675, 000 and P1, 350, 000 for stock dividends and cash dividends, respectively. Required: 1. 2. 3. 4. 5.
Collections from customers. P7,485 Cash disbursed for purchases. P2,025 Net cash provided by operating activities. P4, 185 Net cash used in investing activities. (P2, 160) Net cash used in financing activities. (P 1,350)
MULTIPLE CHOICE QUESTIONS Questions 1 through 4 are based on the following information: On January 1, RUTHA CO. established a petty cash account and designates Anhie Reyes as petty cash custodian. The original amount included in the petty cash fund is P 5, 000. The following disbursements are made from the fund.
Office supplies Postage Entertainment
P1, 730 1, 120 420
The balance in the petty cash is P1, 630. 1. The person responsible, at all times, for the amount of the petty cash fund is the a. Chairman of the Board of Directors b. President of the company c. Petty cash custodian
d. General cashier 2. The following are appropriate procedures for controlling the petty cash fund, except a. To monitor variations in different types of expenditures, the petty cash custodian files petty cash vouchers by category of expenditure after replenishing the fund. b. To replenish the fund, the general cashier issues a company check to the petty cash custodian, rather than cash. c. To determine that the fund is being accounted for satisfactorily, surprise counts for the fund are made from time to time by the internal auditor or other responsible official. d. Each individual to whom petty cash is paid is required to present signed receipts to the petty cash custodian. 3. The objective of establishing a petty cash fund is to a. Cash checks for employees b. Account for all cash receipts and disbursements. c. Account for cash sales d. Facilitate payment of small, miscellaneous items. 4. What is the effect of not replenishing the petty cash at year-end and not making the appropriate adjusting entry? a. A detail audit is essential. b. The petty cash custodian should turn over the petty cash to the general cashier. c. Cash will be overstated and expenses understated. d. Expenses will be overstated and cash will be understated. Questions 5 through 9 are based on the following information: Shown below is the bank reconciliation for Fitch Company for November 2013: Balance per bank, Nov. 30, 2013
150, 000
Add:
24, 000
Deposit in transit
Total Less:
Outstanding Check
28, 000
Bank credit recorded in error
10, 000
Cash balance per books, November 30, 2013
38, 000 136, 000
The bank statement for December 2013 contains in the following data: Total deposits Total charges, including NSF check of P8, 000 and service
110, 000
Charge of P 400
96, 000
All outstanding checks on November 30, 2013, including the bank credit, were cleared in the bank in December 2013. There were outstanding checks of P30, 000 and deposits in transit of P38, 000 on December 31, 2013. Required: 5. How much is the cash balance per bank on December 31, 2013? a. 154, 000 b. 150, 000 c. 164, 000 d. 172, 00 6. How much is the December receipts per books? a. 124, 000 b. 96, 000 c. 110, 000 d. 148, 000 7. How much is the December disbursement per books? a. 96, 000 b. 79, 600 c. 89, 600 d. 98, 000 8. How much is the cash balance per books on December 31, 2013? a. 150, 000 b. 170,400 c. 180,400 d. 162, 000 9. The adjusted cash in bank balance as of December 31, 2013? a. 141, 600 b. 162, 000 c. 172, 000 d. 196, 000 Questions 10 through 15 are based on the following information: You have been asked by the proprietor of Novey Company to verify the accountability of the cashier-bookkeeper, who was allowed to take a vacation leave a few days ago.
a. The bank reconciliation statements below: November 30, 3014: Balance per bank statement Cash on hand Total Outstanding checks: No. 2520 2521 2522 Erroneous bank charge Erroneous bank credit Book balance December 31, 2014: Balance per bank statement Cash on hand Total Outstanding checks: No. 2674 2675 2676 Erroneous bank charge Erroneous bank credit Book balance
prepared by the cashier-bookkeeper are presented
P21, 500 500 22, 000 P2, 000 1, 400 1, 900
(3,300) 2, 000 (500) P 20, 200 P135, 000 6, 300 141, 000
P 31, 000 10, 300 5, 000
(41, 300) 3, 000 (600) P102, 400
The cash in bank account in the general ledger shows the following debits and credits during December of 2014: Dec. 1 2 7 12 17 23 27 31 Total
Balanced Received customers Received customers Received customers Received customers Received customers Received customers Received customers
From From From From From From from
Cash in bank Dec. 20, 200 1 4, 500 5 5, 000 14 20, 000 24 30, 000 28 9, 000 70, 000 48, 500 31 198,
Checks issued Checks issued Checks issued Checks issued Checks issued
2, 000 5, 200 31, 000 46, 000 7, 600
Balance Total
102, 400 198, 200
200 b. The following summarized transactions were taken from the bank statement for the month of December 2014: Balance, December 1, 2014 P16, 500
Total Bank debits The total credits per bank statement: Collection of notes receivable Correction of Nov. erroneous bank charge Dec. 10 deposit of Flesh credited in error to Novey Total bank disbursements The total disbursements per bank statement include: Correction of Nov. erroneous bank credit Dec. check of Freeze charged in error to Novey
173, 700 5, 000 2, 000 600 65, 200 500 3, 000
c. Cash on hand per count in the early morning of Jan. 2, 2015 amounted to P6, 300. d. Before leaving his company for one-week vacation, the proprietor had left several signed blank checks that the cashier-bookkeeper had cashed for his personal use. Required: 10. What is the cash shortage as of November 30, 2014? a. 5, 000 b. 7, 000 c. 33, 000 d. 13, 200 11. What is the adjusted cash balance on November 30, 2014? a. 16, 500 b. 13, 200 c. 20, 200 d. 14, 500 12. The amount of unaccounted receipts in December 2014 is: a. 11, 000 b. 13, 200 c. 9, 000 d. 15, 100 13. The amount of unrecorded/unsupported disbursements in December 2014 is: a. 15, 100 b. 10. 900 c. 7, 000 d. 5, 000 14. What is the total cash shortage as of December 31, 2014? a. 26, 000 b. 15, 100 c. 33, 000 d. 7, 000 15. What is the adjusted cash balance on December 31, 2014? a. 102, 400 b. 125, 000 c. 87, 400 d. 11, 400
