FAR QUIZ BEE (average round)

Which of the investments may qualify as cash equivalent?

i. 1-year treasury bill maturing on April 1, 2023 acquired on Feb. 14, 2021

ii. 1-year Treasury bill maturing on March 1, 2022 acquired on Dec. 31, 2021

• Only i qualify as cash equivalent

• Both qualify as cash equivalent

• Only ii qualifies as cash equivalent

• No investment qualifies as cash equivalent

On October 1, 2021, the warehouse of Fatui Corp. and all inventories contained therein were destroyed by fire. Off-site backup of database shows the following information:

Inventory, Jan. 1, 2021 15,600

Net Purchases 105,000

Net Sales from Jan. to Sept. 120,000

Gross profit rate based on cost 20%

What is the amount of inventory loss due to fire?

• 20,600

• 20,667

• 26,600

• Answer is not in the choices

This occurs when cash shortage is concealed by overstating the balance of cash.

• Overlapping

• Kiting

• Offsetting

• Overfunding

Information on Hu Tao Co.’s defined benefit plan is shown below:

Fair value of plan assets 60,000

Return on plan assets 8%

Contribution to the retirement 100,000

fund during the year

Benefits paid to retirees 20,000

What is the balance of the fair value of plan assets as of year-end?

• 164,800

• 184,800

• 144,800

• 228,000

If the increase in deferred tax asset exceeds the increase in deferred tax asset, there is

• Deferred tax expense

• Deferred tax benefit

• Deferred tax asset

• Indeterminable

Consider the following: Cash in Bank – checking account of 13,500, Cash on hand of 500, Post-dated checks received totaling 3,500, and Certificates of deposit totaling 124,000.

How much should be reported as cash in the balance sheet?

• 13,500

• 14,000

• 17,500

• 131,500

On the statement of cash flows, which of the following items will affect both financing activities and operating activities?

• Issuance of securities

• Collections of loans to other entities

• Payment of dividends

• Redemption of debt

Liyue Corporation had accounts receivable of 100,000 on January 1. The only transactions affecting accounts receivable were sales of 900,000 and cash collections of 850,000. The accounts receivable turnover is

• 6.0

• 6.6

• 7.2

• 9.0

The costing of inventory must be deferred until the end of reporting period under which of the following method of inventory valuation?

• Moving Average

• Weighted Average

• LIFO Perpetual

• FIFO Perpetual

Beidou sells one product and uses a perpetual inventory system. The beginning inventory consisted of 20 units that cost P20 per unit. During the current month, the company purchased 120 units at P20 each. Sales during the month totaled 90 units for P43 each.

What is the number of units in the ending inventory?

• 20 units

• 30 units

• 50 units

• 140 units