NOTES TO FINANCIAL STATEMENTS
MAY 31, 1994
Cash Trust Series II (the "Trust") is registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Trust consists of two portfolios, one diversified and one non-
diversified. The Financial statements included herein present only those of the non-diversified portfolio, Municipal
Cash Series II (the "Fund"). The financial statements of the other portfolio are presented separately. The assets of
each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation
of its financial statements. These policies are in conformity with generally accepted accounting principles.
A. INVESTMENT VALUATIONS--The Fund's use of the amortized cost method to value its portfolio
securities is in accordance with Rule 2a-7 under the Investment Company Act of 1940.
B. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses are
accrued daily. Bond premium and discount are amortized as required by the Internal Revenue Code, as amended
("Code"). Distributions to shareholders are recorded on the ex-dividend date.
C. FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the Code applicable to regulated
investment companies and to distribute to shareholders each year substantially all of its tax-exempt income.
Accordingly, no provision for federal tax is necessary.
D. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in
when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and
maintains security positions such that sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and