Cash equivalents include all of the following except: A. automated system. \qquad\text{Total direct expense}&\text{\hspace{10pt}23,600}&\text{\hspace{10pt}8,200}&\text{\hspace{10pt}31,800}\\ Ireland Corporation obtained a $40,000 note receivable from a customer on June 30, 2016. Each transferee has the right to pledge or exchange the assets it received. A. an NSF check. C. The transferor of the receivable surrenders control over the assets transferred. A. True A petty cash fund of $200 is replenished when the fund contains $5 in cash and receipts of $192. D. A company may invest its highly liquid cash in order to earn interest; these investments are B.) A bank reconciliation contains all of the following items EXCEPT: A grocery store that usually charges $7/pound for beef is willing to lower the price to$5/pound when a huge shipment comes in. c. Issued 2,000 shares of stock on June 1 to acquire a patent. $0. 2. lists items such as currency and checks along with their dollar amounts The discounting is recorded as: She has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street. an invoice approval initiates the recording of a purchase. D. safeguarding cash by using a bank as a depository. Types, Features, Examples, Commercial Paper: Definition, Advantages, and Example, Current Ratio Explained With Formula and Examples, Quick Ratio Formula With Examples, Pros and Cons. Credit factored accounts receivable for $85,000. A firm does the following: a. O commercial paper. Bad debts expense is measured indirectly, and the allowance for uncollectible accounts balance is measured directly. Cash cannot be combined with cash equivalents. A) Either U.S. GAAP and IFRS. Overdrafts typically are not shown as current liabilities on the balance sheet. Cash is listed first in the current assets section. Transfers of receivables sometimes are treated as a sale of receivables. These include white papers, government data, original reporting, and interviews with industry experts. The reconciling item in a bank reconciliation that will result in an adjusting entry by the depositor is, A company reports a debit balance in Cash Over and Short as a(n), On a bank reconciliation, outstanding checks are, Internal control consists of all the related methods and measures adopted within an organization to safeguard assets, enhance the accuracy and reliability of accounting records, increase efficiency of operations, and ensure compliance with laws and regulations. B. D) $405,000. C.) Commercial paper. Cash Flow Statement: What It Is and Examples. B. providing a double record of all bank transactions. Printing check amounts by machine in indelible ink is an example of, The use of pre-numbered checks in disbursing cash is an application of the principle of. The investment must be short term, usually with a maximum investment duration of three months or less. Galaxy should: addition to the balance per depositor's records. Issued 5,000 shares of $5 par common stock for cash at$15 per share. 5.0 (3 reviews) Cash equivalents have each of the following characteristics except: A) Short-term. \text{2021}&130,000&25\\ Debit loss on sale of receivables for $25,000. C. Peecher would debit notes receivable when the note is collected. A) A deduction from net income in determining cash flows from operating activities. A. There are some exceptions to short-term assets and current assets being classified as cash and cash equivalents. B. B) was $20 million. The cash received from customers was: A. IFRS allows interest and dividends received to be reported as either operating or investing. B. mechanical controls. Does this mean that you can shorten a hospital stay by choosing a small hospital? Determine the balance sheet amounts for common stock and additional paid-in capital. Accounts receivable. D.) money on hand. Depreciation expense, $20 million. B. reported as a noncurrent asset. What entry(ies) for income taxes should be recorded for 2016? B) $55 million. On February 1, Derrick Company establishes a $200 petty cash fund. D. deducted from the book balance. Net Sales: 850,000 What is major purpose of an imprest petty cash fund a. Rebound should make a prior period adjustment of 2016 income, given that the impairment charge was in error. Transfers of receivables can be treated as a sale if the transferee is a QSPE. Cash. A Restricted cash. A. deposits made by electronic funds transfer. D. Accounted for on the installment basis. When opened, the new Painting department will fill one-fifth of the space presently used by the Clock department and one-fourth used by the Mirror department. A. C. bank service charges. The unadjusted book balance was $26,620. . having bank auditors verify the correctness of the balance per books. $0. In Note 3 to its financial statements, Apple provides a substantial amount of information regarding what comprises this cash and cash equivalent balance. C. credit Cash for $94. A. Peecher would credit a discount on note receivable when recording the sale. \text{2018}&30,000&20\\ D. None of these answer choices are correct. On September 25, 2021, Apple Inc. had reported $34.94 billion of cash and cash equivalents. Cash flows from interest received on loans are reported in the statement of cash flows as part of: does not change with changes in the volume of activity within the relevant range, A company that uses a job order costing system what entry would they make to record the flow of direct materials into production, debit finished goods inventory and credit raw materials inventory, the approprate section in the statement of cash flows for reporting the purchase of land in exchange form common stock is, schedule of noncash investing or financing activity. A company's investment in receivables is influenced by several variables, including: D.) Cash is listed first in the current assets section. All of the following are classified as cash except: Rebound should recognize an increase in 2017 net income of $50,000, Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus. C. Dishonored note expense. All of the following can be classified as cash and cash equivalents, except * a. Cash equivalents include bank accounts and marketable securities such as commercial paper and short-term government bonds. D. credit Petty Cash for $3. D. Transfer of substantially all the risk and rewards of ownership is an important consideration. A. C) was $23 million. The unadjusted bank balance was $26,960. D. All of these answer choices are correct. B. Contra asset account. High grade marketable equity securities. B)shoes and apparel B. Allowance for uncollectible accounts. D.) U.S. Treasury bills. 3. a transfer of cash from one party to another that does not involve a paper document The note, along with interest at 6%, is due on June 30, 2017. The transferee has received substantially all the risks and rewards of ownership. IFRS allows companies to report cash inflows from interest and dividends as operating, investing, or financing cash flows. D.an NSF check. An organization uses internal control to enhance the accuracy and reliability of its accounting. \end{aligned} 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. D) The indirect method derives cash flows indirectly by starting with sales revenue and "working backwards" to convert that amount to a cash basis. B. b. George is willing to pay up to $20,000 for a car, but he finds one he likes for$15,000. Cash flow from operations is stable. D. Taking the difference between the unadjusted balance in the allowance account and the desired balance. C. Debit discount on liability for $25,000. 4. check. Issued 7,000 shares of common stock on May 1 to acquire a factory building from Barkley Company. Accounting multiple choice questions test 2, Social Psychology Comprehensive Final Review, Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Introduction to Financial Accounting Chapter. D)Ability of the company to generate profit \end{array} D) IFRS. An internal control system is used to do all of the following: Sarbanes-Oxley Act requires each of the following: 1. A. B. C. Comply with form and content rules of bankruptcy proceedings. An increase in available-for-sale securities due to the purchasing of additional shares is reported as an investing activity in the statement of cash flows. A. establishment of responsibility. The company's bank reconciliation at June 30 included interest earned in the amount of $150. B. GAAP requires these to be reported as operating. Williams Company began operations in January 2019 with two operating (selling) departments and one service (office) department. C. The transferor does not maintain effective control over the transferred assets through either repurchase or redemption agreements before maturity or the ability to cause the transferee to return the assets. A) lending and collecting on notes receivable each time monies are paid from petty cash, the custodian requests reimbursement. True In a bank reconciliation, deposits in transit are: The reconciling item in a bank reconciliation that will result in an adjusting entry by the depositor. Match the terms with the definition. If a financial institution does not allow this option, the CD should not be treated as a cash equivalent. The Cash account is debited for $1,050, the amount collected. Therefore, all cash equivalents must have a known market price and should not be subject to price fluctuations. Issues 20,000 shares of $10 par value common stock in the acquisition of inventory with a market value of$175,000, land valued at $220,000, a building valued at$1,400,000, and equipment valued at $405,000. A receivable. bank account balances). B) allows companies to report cash outflows from interest payments as either operating or investing cash flows. C) $70 million. The purpose of assigning accounts receivable is to: of: Zero. Investment in 3-month U.S. Treasury bills: 10,000 D. Current value less expected collection costs. Cash dividends paid on common stock: $25 False, A company records each reconciling item used to determine the adjusted cash balance per books. E) Purchase of plant assets. A research hypothesis was that students whose parents had attained a higher level of education would on average score higher on the SAT. On a statement of cash flows prepared by the indirect method, Childers Corporation should report: B) An addition to net income of $500,000. Step 3: Subtract outstanding checks from the bank balance C.) Restricted cash funds may be combined with Cash. Satisfy a court order. C. Emphasizes strong internal control systems as a goal. Recall on February 1, Derrick Company established a $200 petty cash fund. G & =50 \\ Cash equivalents include each of the following except bank certificates of deposit. If a company adopts an accounts receivable factoring program, and accounts for the factoring as a sale of receivables, which of the following is true in the period the company starts the program (all else equal)? Taking the difference between the unadjusted balance in the allowance account and the desired balance. A. risk assessment Find the amount of molding needed for each of the floors described. Receivables are not remeasured; instead, fair values are obtained from reliable factors. B. independent internal verification. C. physical controls. 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