Intermediate Accounting 11.

Bernal Company had the following account

balances on December 31, 2011:
Cash and Cash Equivalents CiB-Current Acc 1,250,000
CIB-Payroll Acc 250,000
1. To be reported as part of cash and cash
Cash on hand 125,000
equivalents, the cash and cash equivalent
CiB-restricted account for building
must be: Unrestricted in use for current
construction expected to be disbursed in
operations.
2012 750,000
2. All of the following can be classified as cash
Time deposit purchased Dec 15, 2022 and
and cash equivalents, except: Equity
due Mar 15, 2012 500,000
instrument
3. If material, deposits in foreign bank which
The cash on hand includes a P 50,000 check
are subject to foreign exchange restriction
payable to Bernal Company, dated January
shall be classified: separately as current
15, 2012. What should be reported as cash
asset with appropriate disclosure.
and cash equivalents on December 31,
4. Which is not considered as a cash
2011? 2,075,000
equivalent? A three-year treasury note
12. Anton Company needs to make adjusting
maturing on October 30, 2020 purchased by
entries for each of the following reconciling
the entity on June 30, 2020
items. Identify the account to be debited
5. Which item should be excluded from cash
and the account to be credited in each case.
and cash equivalents in the current year-
A check for P59 written to the company by
end statement of financial position? Time
J. Neutron was returned NSF. Debit:
deposit which matures in one year
Accounts Receivable Credit: Cash
6. At the end of the current year, an entity had
13. Which of the following items would not be
various checks and papers in its safe. Which
considered cash? Postdated checks
item should not be included in its cash
14. Cash on hand includes undeposited
account in the current year-end statement
collections such as bills and coins,
of financial position? Past promissory note
customer’s checks, manager’s checks,
issued in favor of the entity by its President
traveler’s checks, cashier’s checks, bank
7. Unreleased checks, which are checks drawn
drafts and money order.
before the end of reporting period but held
15. Cash is generally measured at face value
for later delivery to creditors. Shall be
16. A bank service charge of P25. Deduct from
restored to the cash balance
the checkbook value
8. The petty cash fund account under the
17. The credit of P275 on the bank statement
imprest fund system is debited: when the
for semiannual interest collected by the
fund is created and when the size of the
bank for the company on pledged bonds.
fund is increased
Add it to the checkbook balance
9. When a petty cash fund is used, which of
18. The charge of P122 for NSF check Deduct
the following is true? The reimbursement of
from the checkbook value
the petty cash fund should be credited to
19. The checks outstanding as of June 31,
the cash account.
totaling P 5,020. Deduct from the bank
10. A cash short or over account: is debited
statement balance.
when the petty cash fund proves out short
20. The P 625 deposit not shown in the bank
statement. Add it to the bank statement
balance
21. The P 4,500 proceeds of a bank loan
(reflected on both the books and the bank
statement). Exclude it from the
reconciliation
22. Customer’s check returned by ban marked with original maturities of three months or
NSF. Deduction from cash balance per cash less.
account. 36. What are the different types of cash
23. Proceeds from a customer’s note, principal equivalents? Money market funds, treasury
amount P900 collected by banl collection bills, short-term government bonds
fee of P6 charged by bank. Addition to cash 37. What are the benefits of holding cash and
balance per cash account cash equivalents? Liquidity, flexibility, and
24. Check no. 121 had been entered in the security.
accounts as P 2,230 but was deducted on 38. What are the risks associated with holding
the bank statement in the correct amount cash and cash equivalents? Inflation, loss of
of P 2,320. Deduction from cash balance per potential investment returns, vulnerability
cash account. to theft or loss
25. The current bank statement shows a 39. How can companies improve their cash and
deduction of P 800 for a new checkbook. cash equivalents management?
Deduction from cash balance per cash Implementing effective cash flow
statement. forecasting, optimizing working capital, and
26. A check book of an unauthorized person managing accounts receivable and payable
had been deducted from the account by the efficiently.
bank in error. Addition to cash balance per 40. What are the disadvantages of holding
bank statement excessive cash and cash equivalents?
27. Deposit of May 29 not recorded by the bank Inflation, loss of potential investment
until June 2. Addition to cash balance per returns, vulnerability to theft or loss
bank statement 41. How do cash equivalents differ from long-
28. Outstanding checks totaled P 8,600. term investments? Cash equivalents have
Deduction from cash balance per bank original maturities of three months or less,
statement while long-term investments have
29. A check for P 161 written by TC Corporation maturities of more than three years.
had been deducted on the bank statement 42. Why is it important for companies to
of ETC Corporation. Addition to cash maintain a proper balance between
balance per bank statement liquidity and profitability? To ensure the
30. Which of the following items should not be company can meet its short-term
recorded in the cash account? Postage obligations while maximizing long-term
stamps profits.
31. What is the definition of cash and cash 43. How do we report an NSF check in the
equivalents? Balance of cash on hand and statement of Financial Position? Accounts
investments that can be quickly converted receivable
into cash. 44. Organizations with higher cash balances at
32. Give an example of cash equivalent. year end have higher net income derived
Treasury bills from operations? False
33. Why is it important for companies to report
cash and cash equivalents? To provide Account Receivables
transparency and accuracy in financial 1. Notes or accounts receivables that result
statements. from sales transactions are often called:
34. How are cash and cash equivalents reported trade receivables
on the statement of financial position? As 2. Notes or accounts receivable from officers,
current assets employees, or affiliated companies should
35. What are the characteristics of cash be reported on the balance sheet: As assets,
equivalents? Highly liquid and easily either current or noncurrent.
convertible into known amounts of cash
3. When does an account become allowance based on: Aging the trade
uncollectible? When the debtor fails to pay receivable accounts
an account according to a sales contract 13. Allowance for doubtful accounts has a
4. The type of account and normal balance of
credit balance of P 500 at the end of the
allowance for doubtful accounts is: contra
year (before adjustment), and
asset, credit
5. After the accounts adjusted and closed at
uncollectible accounts expense is
the end of the fiscal year, Accounts estimated at 3% of net sales. If net sales
Receivable has a balance of P 450,000 and are P 600,000, the amount of the
Allowance for doubtful Accounts has a adjusting entry to record the provision
balance of P 25,000. What is the net for doubtful accounts is: P 18,000
realizable value of the accounts receivable? 14. An estimate based on an analysis of
P 425,000 receivables shows that P 780 of
6. Which of the following terms defines when accounts receivables are uncollectible.
a customer buys a good or service on credit
The allowance for doubtful accounts
and agrees to pay at a later date? Accounts
has a debit balance at the end of the
receivable
7. Which of the following terms defines when
year, the balance in the Allowance for
a customer buys a good or service on credit Doubtful Accounts is: P 780
and agrees to pay at a later date? Accounts 15. After the accounts are adjusted and
receivable closed at the end of the fiscal year,
8. Which of the following is a balance sheet Accounts Receivable has a balance of P
account which reduces the reported 450,000 and Allowance for Doubtful
amount of accounts receivable?Allowance Accounts has a balance of P 25,000.
for doubtful accounts What is the net realizable value of the
9. Which of the following transactions accounts receivable? P 425,000
would take place when an account 16. Notes or accounts receivable from
becomes uncollectible and it written off officers, employees, or affiliated
under the allowance method? companies should be reported on the
Allowance of doubtful accounts is balance sheet: As assets, either current
debited; accounts receivable is credited or noncurrent, but separately from
10. Which of the following transactions other receivables.
would take place in the journal when 17. Notes or accounts receivables that
using direct write-off approach for an result from sales transactions are often
uncollectible account? Bad debts called: trade receivables
expense account is debited; accounts 18. When does an account become
receivable is credited uncollectible? When the debtor fails to
11. If the allowance method of accounting pay an account according to a sales
for uncollectible receivables is used, contract
what general ledger account is debited 19. The type of account and normal balance
to write off a customer’s account as of allowance for doubtful accounts is:
uncollectible? Allowance for doubtful contra asset, credit
accounts 20. Under the allowance method, writing
12. A method of estimating bad debts that off an uncollectible account: affects
focuses on the balance sheet rather only balance sheet accounts
than the income statement is the
21. If the allowance method of accounting 15, 2022. Clip Co. collected the
for uncollectible receivables is used, receivable on January 23, 2022. How
what general ledger account is debited much net cash did Clip received from
to write off a customer’s account as the buyer if the terms are FOB
uncollectible? Allowance for doubtful destination, freight collect? P 289,000
accounts 28. On January 13, 2022, Clip Co. sold on
22. A company uses the estimate of sales account goods with selling price of P
method to account for uncollectible 300,000 with terms 2/10, n/30. Freight
accounts. When the firm writes off a costs amounted to P 5,000. The goods
specific customer’s account receivable: were received by the buyer on January
there is no effect on total current assets 15, 2022. Clip Co. collected the
or total expenses. receivable on January 23, 2022. How
23. Using the estimate based on sales much net cash did Clip received from
method of accounting for uncollectible the buyer if the terms are FOB Shipping
accounts, the entry to reinstate a point, freight collect? P 294,000
specific receivable previously written off 29. On January 13, 2022, Clip Co. sold on
would include a, debit to accounts account goods with selling price of P
receivable 300,000 with terms 2/10, n/30. Freight
24. The collections of an accounts that had costs amounted to P 5,000. The goods
been previously written off under the were received by the buyer on January
allowance method of accounting for 15, 2022. Clip Co. collected the
uncollectible? Requires a correcting receivable on January 23, 2022. How
entry for the period in which the much net cash did Clip received from
account was written off. the buyer if the terms are FOB shipping
25. A method of estimating bad debts that point freight prepaid? P 299,000
focuses on the balance sheet rather 30. On January 1, 2022, Wack Co. sells
than the income statement is the inventory with a list price of P 100,000
allowance based on: aging the trade on account under credit terms of 15%,
receivable accounts 20%, 3/10, n/30. Under the net
26. On January 13, 2022, Clip Co. sold on method, how much should be debited
account goods with selling price of P to Accounts receivable on January 1,
300,000 with terms 2/10, n/30. Freight 2022. P 65,960
costs amounted to P 5,000. The goods 31. Allowance for Doubtful Accounts has a
were received by the buyer on January credit balance of P 500 at the end of the
15, 2022. Clip Co. collected the year (before adjustment), the
receivable on January 23, 2022. How uncollectible accounts expense is
much net cash did Clip received from estimated at 3% of net sales. If net sales
the buyer if the terms are FOB are P 600,000, the amount of the
destination, freight prepaid? P 294,000 adjusting entry to record the provision
27. On January 13, 2022, Clip Co. sold on for doubtful accounts is? P 18,000
account goods with selling price of P 32. An estimate based on an analysis of
300,000 with terms 2/10, n/30. Freight receivables shows that P 780 of
costs amounted to P 5,000. The goods accounts receivables are uncollectible.
were received by the buyer on January The allowance for doubtful accounts
 has a debit balance of P 110. After 21: 50 units purchased at a cost of P 50 per
preparing the adjusting entry at the end unit
of the year, the balance in the 28: 60 units sold
What is the value of inventory at June 30
allowance for doubtful accounts is: P
using the FIFO method? P 2,950
780
2. The closing inventory of Tigreal Corp.
33. After the accounts are adjusted and
amounted to P 116,400 excluding the
closed at the end of the fiscal year, following:
Accounts Receivable has a balance of P - 400 items which had cost P 4 each. All
450,000 and Allowance for Doubtful were sold after the reporting period for
Accounts has a balance of P 25,000. P 3 each, with selling expenses of P 200
What is the net realizable value of the for the batch.
accounts receivable? P 425,000 - 200 different items which had cost P 30
34. ABC Company uses the estimate of each. These items were found to be
defective at the end of the reporting
sales method of accounting for
period. Rectification work after the
uncollectible accounts. ABC estimates
statement of financial position date
that 3% of all credit sales will be amounted to P 1,200, after which they
uncollectible. On January 1, 2022, the were sold for P 35 each, with selling
Allowance for Doubtful Accounts had a expenses totaling P 300.
credit balance of P 2,400. During 2022, Which of the following total figures
ABC wrote-off accounts receivable should appear in the statement of
totaling P 1,800 and made credit sales financial position of Tigreal Corp. for
of P 100,000. After the adjusting entry, inventory? P 122,900
the December 31, 2022, balance in the 3. The following figures relate to inventory
held at the end of the reporting period:
Uncollectible Accounts Expense would
be: P 3,000
Cost of materials P 100,000
35. At the beginning of the year, the Net realizable value of materials 90,000
balance in the Allowance for Doubtful Estimated costs to convert materials into
Accounts is a credit of P 540. During the finished goods 50,000
year, P 350 of previously written-off Estimated selling price of finished goods
accounts were reinstated and accounts 160,000
totaling P 410 are written-offs as Estimated costs to sell 5,000: Nil
uncollectible. The end of the year 4. Cupcake Co. started 2020 with P 94,000 of
balance in the Allowance for Doubtful merchandise inventory on hand. During
2020, P 400,000 in merchandise was
Accounts should be: P 480
purchased on account with credit terms of
1/15, n/45. All discounts were taken.
Purchases were all made FOB shipping
Inventory point. Cupcake paid freight charges of P
7,500. Merchandise with invoice amount of
1. An inventory record card shows the
P 5,000 was returned for credit. Cost of
following details for the month of June:
goods sold for the year was P 380,000.
June 1: 50 units in stock at a cost of P 40 per
Cupcake uses a perpetual inventory system.
unit
What is the ending inventory assuming
7: 100 units purchased at a cost of P 45 per
Cupcake uses the gross method to record
unit
purchases? P 112,550
14: 80 units sold
5. Memphis Corp. is a large soft drink bottler sold, realizing a loss on disposal of P 2,100.
that requires new bottling equipment. After What were the proceeds of sale? P 17, 484
negotiating with several suppliers, Memphis 9. An entity’s equipment has carrying amount
decided to accept a special offer from Gasol of P 67,460. An equipment costing P 15,000
Corporation. Gasol will deliver the had been sold for P 4,000, making a loss
equipment with the list price of P 100,000 disposal of P 1,250. No entries had been
to Memphis on July 1, 2020 with the made for this disposal. What is the corrct
following payment terms: carrying amount of the entity’s equipment?
- A deposit of P 20,000 is due on July 1, P 62,210
2020 10. Karina Company purchased a patent on
- Three additional payments are to be January 1, 2017, for P 3,570,000. The patent
made annually from July 1, 2021 to July was being amortized over its remaining
1, 2023 of P 20,000 legal life of 15 years. During 2020 Karina
- Gasol will waive its normal interest determined that the economic benefits for
charge of 6% per year to facilitate the the patent would not last longer than ten
sale. years from the date of acquisition. What
- The equipment is expected to last 5 amount should be reported in the
years, with a residual value of P 20,000. statement of financial postion as patent,
Memphis has a December 31 year end. net of accumulated amortization, at
What should be the depreciation December 31, 2020? P 2,448,000
expense for the year ended 31 11. In January 2020, an entity purchased a
December 2020? P 7,346 mineral mine for P 3,400,000 with
6. Michael Corporation has a machine costing removable ore estimated by geological
P 480,000, with annual depreciation of P surveys at P 2,000,000 tons. The property
96,000, and has accumulated depreciation has an estimated value of P 200,000 after
of P 240,000 on December 31, 2019. On the ore has been extracted. The company
April 1, 2020, when the machine has a fair incurred P 1,000,000 of development costs
value of P 192,000, it is exchanged for a preparing the mine for production. During
similar machine with a fair value of P 2020, P 500,000 tons were removed and P
576,000 and the proper amount of cash is 400,000 tons were sold. What is the
paid. The loss to be recognized on exchange amount of depletion that the entity should
is: P 24,000 expense for 2020? P 840,000
7. Dallas Company purchased a tooling 12. Naruko Company received a P 1,800,000
machine in 2010 for P 600,000. The subsidy from the government to purchase
machine was being depreciated on the manufacturing equipment on January 2,
straight-line method over an estimated 2020. The equipment has a cost of P
useful life of 20 years with no salvage value. 3,000,000, a useful life of five years, and no
At the beginning of 2020, Dallas paid P salvage value. Naruko depreciates the
120,000 to overhaul the machine. As a equipment using sum of the year digits
result of this improvement, Dallas method. If Naruko chooses to account for
estimated that the useful life of the the grant as deferred income, the grant
machine would be extended an additional 5 income to be recognized in 2020 is: P
years. The depreciation to be recognized in 600,000
2020 is: P 28,000 13. The Conceptual Framework is intended to
8. A non-current asset was purchased on the establish: the objective and concepts for
first day of an accounting period, 1 January use in developing standards of financial
2018 for P 34,000 and depreciated by 20% accounting and reporting.
per annum using the reducing balance 14. An inventory record card shows the
method. On 30 June 2020 the asset was following details for the month of June:
 June 1: 50 units in stock at a cost of P 40 per 27. What are the risks associated with holding
unit cash and cash equivalents? Inflation, loss of
7: 100 units purchased at a cost of P 45 per potential investment returns, vulnerability
unit to theft or loss
14: 80 units sold 28. How do cash equivalents differ from long-
21: 50 units purchased at a cost of P 50 per term investments? Cash equivalents have
unit original maturities of three months or less,
28: 60 units sold while long-term investments have
What is the value of inventory at June 30 maturities of more than three years.
using the FIFO method? P 2,950 29. Why is it important for companies to
15. General purpose financial statements are maintain a proper balance between
the product of: financial accounting liquidity and profitability? To ensure the
16. Which of the following is not considered company can meet its short-term
cash for financial reporting purposes? obligations while maximizing lone-term
Postdated checks and IOUs profits.
17. What is consigned inventory? Goods that 30. How do we report an NSF check in the
are sold, but payment is not required until statement of financial position? Accounts
the goods are sold. receivable
18. On March 1 (Year 1), ABC Company 31. Savings accounts are usually classified as
received a P 90,000, 8% interest-bearing cash on the balance sheet. True
note receivable from a financial institution. 32. Companies include postdated checks and
Interest and principal are receivable after 1 petty cash funds as cash. False
year. How much is the interest receivable at 33. Consider the following: cash in bank –
the end of the year? P 6,000 checking account of P 18,500, cash on hand
19. It is a shipping term where the title passes of P 500, and post-dated checks received
to the buyer the moment the seller delivers totaling P 3,500. How much should be
the goods to the common carrier, who acts reported as cash in the balance sheet? P
as an agent for the buyer. FOB shipping 19,000
point 34. A company estimates that P 20,000 of its P
20. Which cost formula assumes that the items 500,000 of accounts receivable will be
of inventory that were purchased or uncollectible. Its Allowance for Doubtful
produced first are sold first? FIFO method Accounts presently has debit balance of P
21. Which is excluded from the cost of 3,000. The adjusting entry will include a
inventories? Administration overheads credit of 23,000 to Allowance for Doubtful
22. It is a shipping term where the risk of loss is Accounts.
transferred from the seller to the buyer at a 35. When the allowance for Doubtful Accounts
named port alongside a vessel designated appears on a company’s financial
by the buyer. FAS statements, its balance will be a credit
23. Inventory is a current asset balance.
24. What are the characteristics of cash 36. On June 1, P 800 of goods are sold with
discount? Given at the point of payment, credit terms of 1/10, n/30. How much
encourage early/prompt payment, recorded should the seller expect to receive if the
as discount received/allowed buyer pays on June 8? P 792
25. Cost of goods sold is computed from the 37. Why did the AICPA create the Accounting
following equation: beg. Inventory + cost of Principles Board? The previous standard
goods purchased + ending inventory setting organization did not provide a
26. These are inventories of service-oriented structured set of accounting principles.
businesses. Work in progress 38. Consider the following: Cash in bank –
checking account of P18,000, cash on hand
 of P 500, postdated checks received totaling
P3,500, and certificates of deposit totaling
P124,000. How much should be reported as
cash in the balance sheet? P18,500
39. When a plant asset is acquired by issuance
of common stock, the cost of the plant
asset is properly measured by the: fair value
of the stock
40. The cost of an intangible asset includes all
of the following except. All are included
(purchase price, legal fees, other incidental
expenses)
1. Which of the following may not be classified 9. Which of the following is not true? The
as “Cash and Cash Equivalents”? postdated petty cash account is debited when the fund
checks id replenished.
2. Which of the following restricted cash may 10. A cash short or over account: is debited
be presented as “Cash and Cash when the petty cash custodian’s
Equivalents” in the statement of financial accountability is greater than the actual
position? Cash set aside for the purchase of count of petty cash
equipment for resale to consumers as 11. To be reported as cash and cash
inventory equivalents, the cash equivalent must be:
3. Which of the following is not to be can be freely used in current operations
presented as “Cash and Cash Equivalents” 12. Which of the following should be presented
in the statement of financial position? Cash as cash in the statement of financial
advances position? Undelivered checks
4. Which of the following may be classified as 13. Cash includes: money and any instrument
“Cash and Cash equivalents” in the that is immediately payable in money and
statement of the financial position? 1 year acceptable by the bank for deposit and
term time treasury bill acquired 2 months immediate credit
before maturity 14. Unreleased checks: are part of the payor’s
5. Which of the following is true? Cash held by cash balance
a bank of financial institution in bankruptcy 15. Which of the following should not be
of financial difficulty should be written considered cash? Postdated checks
down to its estimated realizable value. 16. Which of the following is incorrect with
6. Which of the following is not true about regard to the valuation of cash and cash
compensating balance? Compensating equivalents? Cash equivalents include
balance that is legally restricted in interest that is to be received.
connection with long-term borrowings 17. Deposits in foreign countries that are also
should be presented separately as current subject to certain foreign exchange
asset. restrictions should be: valued at current
7. Which of the following may not be classified exchange rates and presented as
as “Cash”? post-dated check from a noncurrent assets
customer 18. Bank statements provide information about
8. Identify if true or false. all of the following, except: errors made by
I. Post-dated checks are checks that the depositor
are already drawn, recorded as of 19. Which of the following items must be added
the end of the accounting period to the cash balance per ledger in preparing
but not mailed to the payees until a bank reconciliation which ends with
the next accounting period. adjusted cash balance? note receivable
II. Undelivered or unreleased checks collected by bank in favor of the depositor
that are already drawn, recorded and credited to the account of the
and mailed to the payees but depositor
dated subsequent to the end of 20. When preparing a bank reconciliation, bank
the accounting period. credits are: added to the balance per book
III. Stale checks are checks that are 21. Which of the following must be deducted
already drawn, recorded and from the bank statement balance in
mailed to the payees but not yet preparing a bank reconciliation which ends
presented to the bank for relatively with adjusted cash balance? Outstanding
long period of time normally check
beyond six months. 22. If the cash balance shown on entity’s
False, false, true accounting records is less than the correct
 cash balance and neither the entity nor the 34. Under FOB destination point freight
bank has made any errors, there must be: prepaid, which of the following is correct?
deposits credited by the bank but not yet Cost of delivery is paid by the seller
recorded by the entity 35. Under the FOB destination point freight
23. If the balance shown on an entity’s bank collect, which of the following is correct?
statement is less than the correct cash Ownership of the goods in transferred from
balance and neither the entity nor the bank seller to buyer once the goods are delivered
has made any errors, there must be: & released from shipping point.
deposits in transit 36. Which of the following is part of the cash
24. A proof of cash: is a four-column bank account? Undelivered checks which were
reconciliation showing reconciliation of cash drawn before the balance sheet date but
balances per book and per bank at the held for later delivery to creditors.
beginning and end of the current month 37. At September 30, 2023, TWICE Corporation
and reconciliation of cash receipts and cash had cash accounts at various banks. Its
disbursement of the bank and the depositor account balance at DAHYUN Bank is
during the current month segregated solely for an October 15, 2023
25. A proof of cash would be useful for: payment into a bond sinking fund. An
discovering cash receipts that have been account with CHAEYOUNG Bank, used for
recorded but have not been deposited branch operations, is overdrawn. The
26. The category “trade receivables” includes: account with SANA Bank, used for regular
open accounts resulting from short-term corporate operations, has a positive
extensions of credit to customers balance. How should TWICE Corporation
27. Trade receivables are classified as current report these accounts in its September 30,
assets when they are reasonably expected 2023 statement of financial position? The
to be collected: within one year or within segregated account should be reported as
the normal operating cycle, whichever is noncurrent asset, the regular account
longer should be reported as a current asset, and
28. Nontrade receivables are classified as the overdraft should be recorded as a
current assets when they are reasonably current liability.
expected to be collected: within one year, 38. Under the imprest system the petty cash
notwithstanding the operating cycle fund is replenished by writing a check equal
29. Credit balances in accounts receivables to the payments that have been made.
should be classified as: current liability 39. Bank reconciliation: explains the difference
30. Which of the following statement is true in between the bank balance and the balance
relation to presentation of receivables in shown in the depositor’s records..
statement of financial position? Trade 40. Which of the following items appears on
receivable and nontrade receivable which the bank side of a bank reconciliation?
are currently collectible shall be presented Outstanding checks
as one line item. 41. Which of the following items could not be
31. Accounts receivable shall be recognized properly classified under cash? 3-month
initially at: face value time deposit
32. Under the FOB shipping point freight 42. Cash or cash on hand and in banks on the
collect, which of the following is correct? balance sheet may include the following
cost of delivery is shouldered by the buyer items? Currency or cash item on hand, bank
33. Under FOB shipping point freight prepaid, drafts
which of the following is correct? Buyer is 43. The one item that would be excluded from
the owner of the goods still in transit cash on the December 31, 2024 balance
sheet of MINA Co. is a: P 15,000 bank
 certificate deposit which matures in 45
days.
44. Valuation of the cash account in the balance
sheet: face value
45. Which of the following statements is
correct regarding compensating balance?
Compensating balance is treated as current
asset if unrestricted