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Intermediate Accounting Study Set 7

Business

Quiz 9 :

Short-Term Operating Assets: Cash and Receivables

Quiz 9 :

Short-Term Operating Assets: Cash and Receivables

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Cash equivalents are short-term, highly liquid investments with original maturities of one year or less.
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True False
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False

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Which of the following would not be included when valuing cash and cash equivalents on the balance sheet?
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C

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A trade discount reduces the list price for customers purchasing a large quantity of merchandise.
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False

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Which of the following would be classified as a cash equivalent?
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Bordelain Company has cash in bank of $20,000, restricted cash in a separate account of $6,000, and a bank overdraft in an account at another bank of $5,000. Bordelain should report cash of ________.
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Which of the following is considered to be cash (not a cash equivalent)?
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How do accounting standards for bank overdrafts differ under U.S. GAAP and IFRS?
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According to U.S. GAAP, checks written in excess of the balance of a bank account are deducted from the cash account on the balance sheet.
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What is a bank overdraft?
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A compensating cash balance held as support of a credit agreement is not classified as cash on the balance sheet.
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Under U.S. GAAP, bank overdraft should generally be reported as ________.
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Accounting standards require separate disclosure for cash and cash equivalents that are restricted from use in operations.
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Cash equivalents may include Treasury bills and certificates of deposit.
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Sales discounts are reductions granted to customers to encourage quick invoice payment.
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What is a compensating balance?
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Under what circumstances may cash in a bank account be classified as a noncurrent asset?
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What is a cash equivalent?
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What is the balance sheet classification of a bank account whose fund balance is restricted for retirement of bonds that mature in six years?
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Which of the following must be disclosed in the footnotes to the financial statements?
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Grisson Enterprises provides the following information: img * Restricted fund for bond retirement Following U.S. GAAP, what is the dollar amount of Cash and Cash Equivalents reported on Grisson's balance sheet?
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