Statement I: In accordance with PAS 1 par. 66D, an entity shall classify an asset as current when the asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. Statement II: Cash equivalents are investments with original maturities of six months or less. * 1 point a. Only statement I is correct. b. Only statement II is correct c. Both statements are correct d. Both statements are incorrect
Statement I: In accordance with PAS 1 par. 66D, an entity shall classify an asset as current when the asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. Statement II: Cash equivalents are investments with original maturities of six months or less. * 1 point a. Only statement I is correct. b. Only statement II is correct c. Both statements are correct d. Both statements are incorrect
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.5E: Classification of Assets and Liabilities Indicate the appropriate classification of each of the...
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Statement I: In accordance with PAS 1 par. 66D, an entity shall classify an asset as current when the asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. Statement II: Cash equivalents are investments with original maturities of six months or less. *
1 point
a. Only statement I is correct.
b. Only statement II is correct
c. Both statements are correct
d. Both statements are incorrect
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