Cash and Cash Equivalent

From the date the investments are acquired

Highly liquid investments are cash equivalents if the maturity is 90 days of less

IOU

Which of the following should not be considered cash? a. Petty cash fund b. Money order c. Coin and currency d. IOU

Is so near maturity that it represents insignificant risk of change in interest rate.

A cash equivalent is a short-term, highly liquid investment readily convertible into known amount of cash and

current asset

A compensating balance which is legally restricted and related to a short-term loan is classified separately as

Equity investments

All can be classified as cash and cash equivalents, except a. Redeemable preference shares due in 60 days b. Commercial papers due for repayment in 90 days c. Equity investments d. A bank overdraft

Money market placement

All of the following may be included in cash, except a. currency b. money market placement c. checking account balance d. saving account balance

High grade marketable equity investments

Cash and cash equivalents do not include a. Money market funds b. High grade marketable equity investments c. BSP treasury bills d. Commercial papers

All of these are features of cash equivalents

Cash equivalents are a. Treasury bills and money market instruments b. Investments with original maturity of three months or less c. Readily convertible into known amount of cash d. All of these are features of cash equivalents

Fund in a bank account that cannot be spent

Compensating balance represents

Compensating balance

Minimum deposit required to be maintained in connection with a borrowing arrangement

Non-current asset with appropriate disclosure

Restricted deposits in foreign bank are classified as

Restricted cash

Technically cash may not include

Checking account

Which of the following is usually considered cash? a. Certificate of deposit b. Checking account c. Money market saving certificate d. Postdated check

Travel cash advance

Which of the following should not be included in cash? a. Travel cash advance b. Certified check c. Personal check d. Manager check

With the establishment of an imprest petty cash fund, one person is given the authority and responsibility for issuing checks to cover minor disbursements

Which statement in relation to petty cash fund is false? a. Each disbursements from petty cash should be supported by a petty cash voucher b. The creation of a petty cash fund requires a journal entry to reflect the transfer of fund out of the general cash account c. At any time, the sum of the cash in the petty cash fund and total amount for which the imprest petty cash fund was established. d. With the establishment of an imprest petty cash fund, one person is given the authority and responsibility for issuing checks to cover minor disbursements

The entry to account for daily cash sales for which a small amount of cash shortage exited would include a debit to cash short or over account.

Which statement in relation to the cash short or over account is true?

All of these statements are true

Which statement is true about reporting bank overdraft under IFRS? a. Overdraft typically cannot be offset against positive balance in other cash account but reported as current liability b. Generally, cash overdraft is not allowed c. Overdraft can be offset against other bank account when payable on demand and often fluctuates from positive to overdrawn as an integral part of cash management d. All of the statements are true