Which of the following is not considered cash for financial reporting purposes?a. Petty cash funds and change fundsb. Money orders, certified checks, and personal checksc. Coin, currency, and available fundsd. Postdated checks and I. O. U.”s
Which of the following is considered cash?a. Certificates of deposit (CDs)b. Money market checking accountsc. Money market savings certificatesd. Postdated checks
Travel advances should be reported asa. supplies.b. cash because they represent the equivalent of money.c. investments.d. receivables
Which of the following items should not be included in the Cash caption on the balance sheet?a. Coins and currency in the cash registerb. Checks from other parties presently in the cash registerc. Amounts on deposit in checking account at the bankd. Postage stamps on hand
All of the following may be included under the heading of “cash” excepta. currency.b. money market funds.c. checking account balance.d. savings account balance.
In which account are post-dated checks received classified?a. Receivables.b. Prepaid expenses.c. Cash.d. Payables.
In which account are postage stamps classified?a. Cash.b. Office supplies.c. Receivables.d. Inventory.
What is a compensating balance?a. Savings account balances.b. Margin accounts held with brokers.c. Temporary investments serving as collateral for outstanding loans.d. Minimum deposits required to be maintained in connection with a borrowing arrangement.
Under which section of the balance sheet is “cash restricted for plant expansion” reported?a. Current assets.b. Non-current assets.c. Current liabilities.d. Stockholders” equity
A cash equivalent is a short-term, highly liquid investment that is readily convertible into known amounts of cash anda. is acceptable as a means to pay current liabilities.b. has a current market value that is greater than its original costc. bears an interest rate that is at least equal to the prime rate of interest at the date of liquidation.d. is so near its maturity that it presents insignificant risk of changes in interest rates.
Bank overdrafts, if material, should bea. reported as a deduction from the current asset section.b. reported as a deduction from cash.c. netted against cash and a net cash amount reported.d. reported as a current liability.
Deposits held as compensating balancesa. usually do not earn interest.b. if legally restricted and held against short-term credit may be included as cash.c. if legally restricted and held against long-term credit may be included among current assets.d. if separately restricted and held against long-term credit may be included as noncurrent assets
When a company has cash available in another account in the same bank at which an overdraft has occurred, the company will:a. offset the overdraft against cash account.b. report the same in the notes to financial statement.c. report the bank overdraft amount as account payable.d. classify the bank overdraft as compensating balance.
Which of the following statements is correct regarding receivables? a. Receivables are written promises of the purchaser to pay for goods or services.b. Receivables are claims held against customers and others for money, goods, or services.c. Receivables are non-financial assets.d. Receivables that are expected to be collected within a year are classified as noncurrent.
The category “trade receivables” includesa. advances to officers and employees.b. income tax refunds receivable.c. claims against insurance companies for casualties sustained.d. amounts owed by customers for goods bought or services rendered
MyAccountingLab with Pearson eText — Instant Access — for Financial Accounting9th EditionCharles T. Horngren