No. 3

4. Which is false concerning measurement of cash and cash equivalents?    a. Cash is measured at face value b. Cash in foreign currency is measured at the current exchange rate c. If a bank or financial institution holding the funds of the company is in bankruptcy or financial difficulty, cash should be written down to estimated realizable value d. Cash equivalents should be measured at maturity value, meaning face value plus interest

Choose from the following list of terms and phrases to best complete the following statements. a. Cash c. Outstanding check e. Cash over and short b. Cash equivalents d. Liquidity f. Voucher system 1. The category includes currency, coins, and deposits in bank accounts. 2. The term refers to a company’s ability to pay for its current liabilities. 3. The category includes short-term, highly liquid investment assets that are readily convertible to a known cash amount and sufficiently close to their due dates so that their market value will not greatly change.

1) Explain the meaning of Restricted Cash, and provide an example. 2) Describe what challenges are facing the Conceptual Framework for Financial Reporting today?

Which of the following transactions involve the movement of cash? O A provision for obsolete stocks. O A bonus issue. O A provision for doubtful debts. O None of the above.

Do you think that cash and profits are the same? Can you think of any business transactionsthat do not involve an immediate movement of cash?

Which of the following circumstances would result in an increase in cash from operations but not an increase in net income? Select one: a. None of the other choices is correct b. The failure to take advantage of a purchase discount offered by the supplier c. The sale of equipment for an amount greater than its book value d. The reissuance of treasury stock for an amount greater than its cost e. The issuance of bonds at a premium

Which of the following statements is false? A.   Moral hazard is the lack of incentive to guard against risk where one is protected from its consequences.   B.   Information about a bank’s activities and financial performance is available in the bank’s financial statements.   C.   As long as everyone continues to accept the paper bills in exchange, they will have value and serve as currency.   D.   To an economist, money is the stock of assets that can be readily used to make transactions.

10.-The holding of cash for a company represents: security in transactions, the possibility of speculation and to show stability among its shareholders. True or false? Please double check your answer.

only options are cash, cash equivilants, or liquidity

Classification of Cash Flows Related to the Cost of Financing. Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest expense on debt as an operating activity but classifies cash expenditures for dividends to shareholders as a financing activity. Justify this apparent paradox. Please explain without copying from another source.

Which of the following does not represent an outflow of cash and therefore would not be reported on the Statement of Cash Flows as a use of cash? Multiple Choice payment of cash dividends purchase of investments purchase of Treasury Stock issuance of Common Stock

Borrowing cash from the bank would have what effect on the accounting equation? O Assets increase and stockholders' equity increases. o Assets increase and liabilities increase. o Liabilities decrease and stockholders' equity increases. o Liabilities increase and stockholders' equity decreases.

Which of the following is not a money market instrument? a.Equity Shares b.Treasury Bills c.Certificate of Deposits d.Commercial Paper **reply fast plz -

41 . Which of the following would not be a cash flow from financing activities? Multiple Choice Borrowing on a long-term note payable Payment of interest on bonds payable Repayment of principal on bonds payable Payment of a cash dividend

5. How will you treat Bank Overdraft in a Cash Flow Statement? (A) Cash Flow from Operating Activities' (B) Cash Flow from Investing Activities {C) Cash Equivalent (D) Cash Flow from Financing Activities.

Which of the following transactions would result in an increase in capital employed? A. Paying a trade payable in cash B. Writing off a bad debt C. Purchasing on credit D. Repaying a loan E. Selling inventory at a profit F. Increasing the bank overdraft to purchase a non - current asset