5 1 multiple choice questions 1 what is not included in 39 cash and cash equivalents 4306335

5 1 multiple choice questions 1 what is not included in 39 cash and cash equivalents 4306335

5.1   Multiple Choice Questions

1) What is not included in 'cash and cash equivalents'?

A) Canadian cash on hand.

B) Demand deposits.

C) Six-month term deposits.

D) Three-month Treasury bills.

2) Which statement about 'cash and cash equivalents' is correct?

A) The definition for 'cash and cash equivalents' used on the balance sheet differs from the definition for 'cash and cash equivalents' used on the cash flow statement.

B) A change in the composition of 'cash and cash equivalents' is considered an operating activity on the cash flow statement.

C) A change in the composition of 'cash and cash equivalents' is not considered a cash flow for purposes of the cash flow statement.

D) 'Cash and cash equivalents' are short term semi-liquid investments that can be converted to cash within a short time frame.

3) Which of the following is not a reason for preparing a bank reconciliation?

A) It explains differences between cash in the general ledger and cash on the bank statement.

B) It is helpful in identifying fraud committed by employees.

C) It is helpful in identifying any errors made by the bank.

D) It is helpful in identifying any bookkeeping errors made in the general ledger.

4) Which statement is correct about the bank reconciliation?

A) It compares cash in the company's records with those of the bank.

B) It does not identify accounting errors made by the bank.

C) It interferes with other internal controls over cash.

D) It compares cash in the general ledger with the monthly budgets.

5) What is included in 'cash and cash equivalents'?

A) Petty cash.

B) Six-month term deposits in Canadian dollars.

C) Guaranteed Investment Certificate maturing in 100 days.

D) Four-month term deposit in U.S. dollars.

6) What is included in 'cash and cash equivalents'?

A) Guaranteed Investment Certificate maturing in 181 days.

B) Four-month term deposits.

C) U.S. cash on hand.

D) Guaranteed Investment Certificate maturing in 125 days.

7) What is included in 'cash and cash equivalents'?

A) Short term, semi liquid investments convertible into known amounts of cash.

B) Short term, highly liquid investment convertible into known amounts of cash.

C) Cash restricted for plant expansion.

D) Sinking funds.

8) What dollar amount will be included in 'cash and cash equivalents'?

Treasury bills maturing in 30 days

$12,000

Investment in a money market fund

8,000

Cash on hand

1,000

Postage stamps

1,000

A) $9,000

B) $12,000

C) $21,000

D) $22,000

9) What dollar amount will be included in 'cash and cash equivalents'?

Treasury bills maturing in 30 days

$11,000

Investment in a money market fund

8,000

Cash restricted for plant expansion

1,000

Three-month term deposits

2,000

A) $9,000

B) $11,000

C) $21,000

D) $22,000

10) What dollar amount will be included in 'cash and cash equivalents'?

Investment in shares of a public company

$11,000

Investment in a money market fund

8,000

Cash restricted for plant expansion

1,000

Three-month term deposits

2,000

A) $8,000

B) $10,000

C) $19,000

D) $21,000

Looking for a similar assignment? Get help from our qualified experts!

Order Now

Related Posts