Having different individuals receive cash, record cash receipts, and hold the cash is an example of, Large companies often assign independent internal verification to the, Controls that relate primarily to the safeguarding of assets are, The principles of internal control include all of the following except. B. Cash interest paid to bondhodlers: $35 A) $235,000. D) $105 million. The company's days' sales uncollected is closest to: 53.7 days B) IFRS. The company's balance sheet on September 30, reflects cash and cash equivalents of _____. B) An addition to net income in determining cash flows from operating activities. Accounts receivable. A. 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. C. Bad debts expense. Debt instruments, whether issued by a government or corporation, is tied to the health of that entity with no guarantee the entity may survive the term of the cash equivalent. If a company has cash or cash equivalents, the aggregate of these assets is always shown on the top line of the balance sheet. B) An addition to net income in determining cash flows from operating activities. A) A deduction from net income in determining cash flows from operating activities. A. cash balance according to the bank statement. 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. D. Retained earnings. \text{2021}&130,000&25\\ Funds in a bank account that can't be spent. D. Peecher would multiply sales revenue by the effective interest rate to determine interest revenue each period. There are some exceptions to short-term assets and current assets being classified as cash and cash equivalents. D. establishment of responsibility. 1. signature card Cash paid to acquire office equipment: $40 B. A) Source of cash used for plant expansion D) Neither U.S. GAAP and IFRS. Taking the difference between the unadjusted balance in the allowance account and the desired balance. B) was $20 million. D) The indirect method derives cash flows indirectly by starting with sales revenue and "working backwards" to convert that amount to a cash basis. Typical cash flows from investing activities include each of the following except: A) Payment to acquire held-in maturity securities of other entities, except cash equivalents B) Proceeds from the sale of equipment C) Proceeds from collecting the principal amount of accounts receivable arising from customer sales D) Payment to buy intangible assets A) Cash from operating activities increased. A. 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. Cash and Cash Equivalents Definition. Which of the following is recorded by a credit to accounts receivable? d. At =.05\alpha=.05=.05, what is your conclusion? A. A) was $17 million. See Answer Satisfy a court order. Cash flows from operating activities during 2016 should be reported as: Cash equivalents often have slightly greater yields than cash. Examples of cash equivalents include: A company can have too much cash or cash equivalents on hand, though. Restricted cash expected to be used within the next year should be A.reported as a current asset. A. A. collection of a note receivable. The transferee has received substantially all the risks and rewards of ownership. Cash equivalents include all of the following except. U.S. treasury bills. Debit loss on sale of receivables for $25,000. Cash and cash equivalents may have different insurance coverage. Commercial papers held and due for repayment in 90 days c. Equity investments d. A bank overdraft. B.) 59,500 D) $405,000. A receivable. C. Recorded at an amount equal to the future cash flows. In 2016 Rebound recognized an impairment of $200,000 due to a troubled debt restructuring. College Grads During 2016, the fair value of those shares increased by $19 million. \end{array} Which of the following is not a result of the Sarbanes-Oxley Act? C. Deferred revenue account. On a bank reconciliation, outstanding checks are: Companies with a healthy amount of cash and cash equivalents can reflect positively in their ability to meet their short-term debt obligations. A. income on the income statement. 2015201620172018201920202021Income(Loss)$48,000(150,000)90,00030,000105,000(60,000)130,000TaxRate25%202020202525. B. restricted cash. D. bank errors. D. All of these answer choices are correct. Apple classifies its broad assortment of financial instruments as cash, Level 1 instruments, or Level 2 instruments (based on how the item is valued). Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus. The United Nations Development Programme regularly releases its Human Development Report. C. Cash is listed first in the current assets section. A company may report prepaid assets as part of its current asset section. Step 8: Compute the adjusted book balance. The bank statement included interest earned. Cash may not include: Foreign currency. What Are Cash Equivalents? bank account balances). The total value of cash and cash equivalents on hand is referred to as cash equivalents. Proceeds from sale of land and buildings: $45 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. Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Charles T. Horngren, C William Thomas, Walter T. Harrison Jr., Wendy M Tietz, FS 3345 Lecture 8 - Guest Lecture - DV in the. Galaxy sells used videogames for cash and provides a one-week return right. A) paint . You can learn more about the standards we follow in producing accurate, unbiased content in our. During 2016, Eastern received a $50 million cash dividend from Southern. B.) Treasury stock purchased for cash: $25 Cash is the asset most susceptible to fraudulent activities. C. a deduction from the balance per bank statement. A note receivable Mild Max Cycles discounted with recourse was dishonored on its maturity date. A. D) designates cash outflows for interest payments and cash inflows from interest and dividends received as operating cash flows. Advanced Accounting Ch. What Is a Liquid Asset, and What Are Some Examples? Zero. B. C.) Restricted cash funds may be combined with Cash. C. $39,220. Restricted T-bills must be reported separately. C. disclosed in the notes to the financial statements. A study shows that there is a positive correlation between the size of a hospital (measured by its number of beds xxx ) and the median number of days yyy that patients remain in the hospital. This transaction would be reported as: Question Transcribed Image Text: Current Attempt in Progress Cash equivalents include each of the following except money market funds. 2. lists items such as currency and checks along with their dollar amounts \text{Total expense}&\underline{\text{\hspace{10pt}43,720}}&\underline{\text{\hspace{11pt}17,880}}&\underline{\text{\hspace{10pt}61,600}}\\ Cash is the direct ownership of a government-issued currency. A. OU.S. 4. check. C. debit Miscellaneous Expense for $3. In other words, there can be no restrictions on converting any of the securities listed as cash and cash equivalents. The cash received from customers was: The dollar amounts of cash equivalents must be known. Loans to employees. A.) B. The discounting is recorded as: 12 Q All of the following are classified as cash except A.) D) $245,000. On a bank reconciliation, collection of a note receivable by the bank is: 0+x2e2xdx. A company carries cash and cash equivalents to pay its short-term bills but to also preserve capital for long-term capital deployment. B. D.) Treasury bond, Restricted cash expected to be used within the next year should be, Cash equivalents include each of the following except. Stock dividends do not affect assets or liabilities and are not considered investing or financing activities. C. U.S. Treasury bills. B) $55 million. Internal control consists of all the related methods and measures adopted within an organization Determine the balance sheet amounts for common stock and additional paid-in capital. Understanding Cash and Cash Equivalents (CCE), Real-World Example of Cash and Cash Equivalents. At the end of business on September 1, the total displayed on the cash register tape shows $1,059 of cash sales for the day. The transferee has received substantially all the risks and rewards of ownership. Accounts Receivable, 12/31/19: 125,000 A. d. Tom usually charges $75/hour but in certain cases is willing to go as low as$65/hour. Cash flow from operations is stable. Cash equivalents do not include: Money market funds. D. None of these answer choices are correct. no accounting entry to record a payment when it is made from petty cash. The principles of internal control include all of the following except: False, Control is most effective when two people are responsible for a given task. features of a job costing system include all but which of the following: The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is: Typical cash flows from investing activities include each of the following except: C) proceed from collecting the principal amount of AR arising from customer sales, The cost of workers who assist in or supervise the manufacturing process, not linked to specific units of product is called, For product cost associated with a particular product to be reported on the income statement, A job order costing system would best fit the needs of a company that makes Cash and cash equivalents comprise cash on hand and demand deposits, together with short-term, highly liquid investments that are readily convertible to a known amount of cash, and that are subject to an insignificant risk of changes in value. Removal of the pledged receivables from current assets and including them with noncurrent investments. X & =80 \\ B. What entry(ies) for income taxes should be recorded for 2016? Prepare departmental income statements that show the companys predicted results of operations for calendar-year 2020 for the three operating (selling) departments and their combined totals. B. controller. It may be inefficient to sit on these resources instead of deploying them for company growth or rewarding investors with dividends. Cash equivalents include all of the following except: C. an asset on the balance sheet. A. addition to the balance per bank statement. D. correction of bank errors. $1 (decrease in salaries payable) + $20 (depreciation expense). 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. Find the most recent copy of this report, and investigate exactly how the HDI is defined and computed. Present value of future cash receipts. False, A company records each reconciling item used to determine the adjusted cash balance per books. B) The purchase of treasury stock. D. Restricted cash funds cannot be reported as a current asset. Cash management strategies include all of the following except _____. 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