\qquad\text{Depreciation-equipment}&\underline{\text{\hspace{15pt}1,500}}&\underline{\text{\hspace{20pt}300}}&\underline{\text{\hspace{15pt}1,800}}\\ C) An investing activity. A. However, oftentimes cash equivalents do not include equity or stock holdings because they can fluctuate in value. A. The level of sales. D. independent internal verification. O'Hara agrees to restructure the note under terms that yield a present value of $880,000. E) Source of cash used for debt repayments, D) ability of the company to generate profit, A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is, period cost for a manufacturing company would flow directly to, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus, The Economics of Money, Banking and Financial Markets, Political Economy of Women Final Exam- Discri. D. safeguarding cash by using a bank as a depository. A) $151 million. D) $105 million. Money orders. C. Estimating annual sales returns. 130 Reporting Comprehensive Income," Page 6. Examples of Cash Equivalents Examples of cash equivalents include: money market accounts U.S. Treasury Bills commercial paper He reasoned that he could come very close to the true amount because of his past experience working with inventory. Companies carry cash and cash equivalents for a variety of business reasons. What Is a Liquid Asset, and What Are Some Examples? A) $13 million. $4,000 (increase in bond interest payable) - $1,000 (decrease in bond discount). Satisfy a court order. Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a company's assets that are cash or can be converted into cash immediately. However, because there is risk that a refund cannot be processed timely or there may be only a partial return of funds, prepaid assets are not considered cash equivalents. D. A company may invest its highly liquid cash in order to earn interest; these investments are each time monies are paid from petty cash, the custodian requests reimbursement. \textbf{For Year Ended December 31,2019}&\textbf{Clock}&\textbf{Mirror}&\textbf{Combined}\\[5pt] C. a deduction from the balance per bank statement. The company's balance sheet on September 30, reflects cash and cash equivalents of _____. A company may report prepaid assets as part of its current asset section. C) $171 million. D. Peecher would multiply sales revenue by the effective interest rate to determine interest revenue each period. C) An investing activity. \qquad\text{Utilities expense}&\text{\hspace{15pt}2,600}&\text{\hspace{10pt}1,400}&\text{\hspace{15pt}4,000}\\ d. At =.05\alpha=.05=.05, what is your conclusion? The purpose of assigning accounts receivable is to: Cash and cash equivalents refer to the value of a company's assets like short-term bonds, treasury bills, commercial papers, etc. Cash flows from operating activities during 2016 should be reported as: A. A closely watched finding of this report is the Human Development Index (HDI), which measures the overall achievements in a country in three basic dimensions of human development: life expectancy, educational attainment, and adjusted income. Applies to publicly held companies. IFRS allows interest payments to be reported as either an operating activity or financing activity and interest received as either an operating activity or investing activity. C) Maturity of at least 3 months. Gershwin Wallcovering Inc. shipped the wrong shade of paint to a customer. The College Board provided comparisons of Scholastic Aptitude Test (SAT) scores based on the highest level of education attained by the test taker's parents. In deciding whether financing with receivables is a secured borrowing or a sale under U.S. GAAP, the critical element is the extent to which: All of the following are classified as cash except: Which of the following is true? False, Companies use a petty cash fund to pay relatively small amounts. A) Either U.S. GAAP and IFRS. However, when the clerk and the supervisor count the cash in the register, the count reveals that $1,050 was actually collected from customers. B. A. D. $36,820. Nontrade receivables do not include: Selected information from Phillips Corporation's accounting records and financial statements for 2016 is as follows ($ in millions): Cash equivalents include each of the following except Select one: a. petty cash. C. Rebound should recognize an increase in 2017 net income of $50,000. A) Cash from operating activities increased. C. A retroactive restatement is necessary due to a change in accounting principle. Also, the value of inventory is not guaranteed, meaning there's no certainty in the amount that'll be received for liquidating the inventory. Overdrafts typically cannot be offset against positive balance in other cash accounts on the balance sheet. D. documentation procedures, The use of remittance advices for mail receipts is an example of. Sale of inventory on account. A. each time monies are paid from petty cash, the custodian records the details of the payment D. a liability on the balance sheet. A research hypothesis was that students whose parents had attained a higher level of education would on average score higher on the SAT. A restricted cash 13 Q B) $55 million. D. Current value less expected collection costs. C. the cost of printing checks. B. deducted from the bank balance. 4. check. C. Expected amount to be received. Restricted T-bills must be reported separately. In 2017 Rebound was pleased to determine that more cash flows would be received from the receivable than was previously thought, such that, if the total impairment were to be calculated in 2017, it would be estimated as $150,000 rather than $200,000. Cash flows from operating activities = $140 + $1 (amortization of patent) + $9 (decrease in accounts receivable) ? If a financial institution does not allow this option, the CD should not be treated as a cash equivalent. D. deduction from the balance per depositor's records. Galaxy should: A. A receivable. The company's days' sales uncollected is closest to: 53.7 days Cash that is restricted and not available for current operations is reported in the balance sheet as: Which of the following is true about reporting cash under IFRS? For simplicity, the total value of cash on hand includesitems with a similar nature to cash. C. the cost of printing checks. The difference between cash and cash equivalents is minimal. The transferee has received substantially all the risks and rewards of ownership. a. Financial instruments are defined as cash equivalents if they are highly liquid products that have active marketplaces, are without liquidation restrictions, and are easily convertible to cash. Cash and cash equivalents refers to the line item on thebalance sheet that reports the value of a company's assets that are cash or can be converted into cash immediately. Cash equivalents include bank accounts and marketable securities such as commercial paper and short-term government bonds. mail clerk The entry to record the setup of this petty cash fund includes a debit to the Petty Cash account and a credit to the Cash account for $200. B. a bank service charge. Cash equivalents include bank accounts and marketable securities, which are debt securities with maturities of less than 90 days. Treasury stock purchased for cash: $25 Depreciation expense, $20 million. $40,600. A company writes a check to replenish a $100 petty cash fund when the fund contains receipts of $94 and $3 in cash. The investment in Microsoft common stock does not meet the criteria for a cash equivalent, which is a short-term, highly liquid investment asset that is readily convertible to a known cash amount and sufficiently close to its due date so that its market value is not sensitive to interest rate changes. \qquad\text{Sales salaries}&\text{\hspace{10pt}20,000}&\text{\hspace{10pt}7,000}&\text{\hspace{10pt}27,000}\\ See Answer Brewer Inc. is owed $200,000 by Carol Co. under a 10% note with two years remaining to maturity. D. All of these answer choices are correct. A) was $17 million. A. D. postdated checks, Having different individuals receive cash, record cash receipts, and hold the cash is an example U.S. agency securities, certificate of deposit and time deposits, commercial paper, and corporate debt securities. On April 1, Troubled would: The first sample shows the SAT math test scores for students whose parents are college graduates with a bachelor's degree. The following data are from the accounting records of Marshall: The control features of a bank account do not include: having bank auditors verify the correctness of the bank balance per books. True D) Notes payable issued for a tract of land. The journal entry that O'Hara would make to record this transaction would include a loss on troubled debt restructuring of: A) paint D) $405,000. C. Cash is the most liquid asset, and it is therefore listed first under the property, plant, and You may omit explanations for the journal entries. &\underline{\hspace{2pt}\text{Income (Loss)}\hspace{2pt}}&\underline{\hspace{2pt}\text{Tax Rate}\hspace{2pt}}\\ Cash interest paid to bondhodlers: $35 location to another is called a(n): In addition, some money market funds may be tax-exempt or be held in tax-favorable accounts. Establishment of responsibility B. Segregation of duties C. Independent internal verification D. All of these answer choices are correct. C. Disclosure of the arrangement in notes to the financial statements. Cash equivalents should be highly liquid and easily sold on the market. True Which of the following is true with respect to the current period (all else equal)? Assume a company has been maintaining a receivables factoring program for the past five years and has been experiencing the same level of sales, factoring, and bad debts over that period. D. Bad debts expense is measured directly, and the allowance for uncollectible accounts balance is measured indirectly. B) An addition to net income in determining cash flows from operating activities. A) was $17 million. A. establishment of responsibility. What entry(ies) for income taxes should be recorded for 2016? The unadjusted bank balance was $26,960. total manufacturing cost incurred during the year do not include: C) work in process inventory, beginning balance. In July, Jukebox Company issued checks totaling $38.900. D) depends on the proportion of cash sales and credit sales. Investment in 3-month U.S. Treasury bills: 10,000 No changes for those departments gross profit percents or their direct expenses are expected except for store supplies used, which will increase in proportion to sales. Explain how South America's population patterns have been shaped by ethnic diversity, physical geography, migration, and urban growth. Cash paid for bond interest = $400,000 (interest expense) ? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Collections from customers. Loans to employees. \qquad\text{Rent expense}&\text{\hspace{15pt}7,020}&\text{\hspace{10pt}3,780}&\text{\hspace{10pt}10,800}\\ b. 2. deposit ticket Eastern Manufacturing Company owns 40% of the outstanding common stock of Southern Supply Company. 181718^{\prime} \times 17^{\prime} Sales to customers. B. collection of a note receivable. IFRS defines cash equivalents as short-term, highly liquid investments that are readily convertible to known amounts of cash. B. Control is most effective when two people are responsible for a given task. Galaxy sells used videogames for cash and provides a one-week return right. Some terms may not be used. Find the most recent copy of this report, and investigate exactly how the HDI is defined and computed. D. automated controls. Cash paid to acquire equipment: $18 B. C. bank safety deposit boxes for important papers. True their bank and cash fund accounts. Investment revenue received: $33 B. debit Petty Cash for $94. 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