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PROBLEMS PROBLEM 1: TRUE OR FALSE 1. Money, whether restricted or not, is presented as cash. 2 Postdated checks received from customers are reverted from cash back to receivable, 3. An investment in debt securities that is acquired 3 months or less before maturity date is presented as cash equivalent. 4. Checks drawn that are postdated should be reverted back to cash even if the checks are already delivered to the payees. 5. Entity A acquired debt securities 2 years ago. At the reporting date, the debt securities have a remaining term of 2 months. Entity A can present the debt securities as cash equivalents. 6. Compensating balances that are legally restricted as to withdrawal by the borrower are excluded from cash. 7. For best internal control, the duties of cash custody, cash disbursements authorization and cash recording should be delegated to one and same personnel. 8. The "Petty Cash Fund" account is credited each time a petty cash disbursement is made. 9. An entity's petty cash fund (PCF) has an imprest balance of P100, At the end of the period, the PCF consists of P20 coins and currencies. To replenish the PCF, the entity should write a check amounting to P80. 10. An entity's PCF has an imprest balance of P100. At the end of the period, disbursements., The amount of PCF to be reported in the financial statements is P70. the PCF includes P30 unreplenished

PROBLEMS PROBLEM 1: TRUE OR FALSE 1. Money, whether restricted or not, is presented as cash. 2 Postdated checks received from customers are reverted from cash back to receivable, 3. An investment in debt securities that is acquired 3 months or less before maturity date is presented as cash equivalent. 4. Checks drawn that are postdated should be reverted back to cash even if the checks are already delivered to the payees. 5. Entity A acquired debt securities 2 years ago. At the reporting date, the debt securities have a remaining term of 2 months. Entity A can present the debt securities as cash equivalents. 6. Compensating balances that are legally restricted as to withdrawal by the borrower are excluded from cash. 7. For best internal control, the duties of cash custody, cash disbursements authorization and cash recording should be delegated to one and same personnel. 8. The "Petty Cash Fund" account is credited each time a petty cash disbursement is made. 9. An entity's petty cash fund (PCF) has an imprest balance of P100, At the end of the period, the PCF consists of P20 coins and currencies. To replenish the PCF, the entity should write a check amounting to P80. 10. An entity's PCF has an imprest balance of P100. At the end of the period, disbursements., The amount of PCF to be reported in the financial statements is P70. the PCF includes P30 unreplenished

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 21E
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problem 1: true or false (only)

Cah amd Cash Equitulents 75 PROBLEMS PROBLEM 1: TRUE OR FALSE 1. Money, whether restricted or not, is presented as cash. 2 Postdated checks received from customers are reverted from cash back to receivable, 3. An investment in debt securities that is acquired 3 months or Jess before maturity date is presented as cash equivalent. 4. Checks drawn that are postdated should be reverted back to cash even if the checks are already delivered to the payees. 5. Entity A acquired debt securities 2 years ago. At the reporting date, the debt securities have a remaining term of 2 months. Entity A can present the debt securities as cash equivalents. 6. Compensating balances that are legally restricted as to withdrawal by the borrower are excluded from cash. 7. For best internal control, the duties of cash custody, cash disbursements authorization and cash recording should be delegated to one and same personnel. 8. The "Petty Cash Fund" account is credited each time a petty mon ex cash disbursement is made. 9. An entity's petty cash fund (PCF) has an imprest balance of P100. At the end of the period, the PCF consists of P20 coins and currencies. To replenish the PCF, the entity should write a check amounting to P80. 10, An entity's PCF has an imprest balance of Pl100. At the end of the period, disbursements, The amount of PCF to be reported in the financial statements is P70. the PCF includes P30 unreplenished PROBLEM 2: MULTIPLE CHOICE - THEORY 1. Which of the following should not be included in cash? a. postdated checks drawn and delivered to payees b. checks drawn but not vet delivered to the pavees C. postdated checks received from customers d. cash collections not deposited at vear-end exclu ys te
Transcribed Image Text:Cah amd Cash Equitulents 75 PROBLEMS PROBLEM 1: TRUE OR FALSE 1. Money, whether restricted or not, is presented as cash. 2 Postdated checks received from customers are reverted from cash back to receivable, 3. An investment in debt securities that is acquired 3 months or Jess before maturity date is presented as cash equivalent. 4. Checks drawn that are postdated should be reverted back to cash even if the checks are already delivered to the payees. 5. Entity A acquired debt securities 2 years ago. At the reporting date, the debt securities have a remaining term of 2 months. Entity A can present the debt securities as cash equivalents. 6. Compensating balances that are legally restricted as to withdrawal by the borrower are excluded from cash. 7. For best internal control, the duties of cash custody, cash disbursements authorization and cash recording should be delegated to one and same personnel. 8. The "Petty Cash Fund" account is credited each time a petty mon ex cash disbursement is made. 9. An entity's petty cash fund (PCF) has an imprest balance of P100. At the end of the period, the PCF consists of P20 coins and currencies. To replenish the PCF, the entity should write a check amounting to P80. 10, An entity's PCF has an imprest balance of Pl100. At the end of the period, disbursements, The amount of PCF to be reported in the financial statements is P70. the PCF includes P30 unreplenished PROBLEM 2: MULTIPLE CHOICE - THEORY 1. Which of the following should not be included in cash? a. postdated checks drawn and delivered to payees b. checks drawn but not vet delivered to the pavees C. postdated checks received from customers d. cash collections not deposited at vear-end exclu ys te
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