ACC 102 Review Activity

Savings accounts are usually classified as cash on the balance sheet.

• TRUE

• FALSE

Companies include postdated checks and petty cash funds as cash.

• TRUE

• FALSE

Cash equivalents are investments with original maturities of six months or less.

• TRUE

• FALSE

Bank overdrafts are always offset against the cash account in the balance sheet.

• TRUE

• FALSE

Trade receivables include notes receivable and advances to officers and employees.

• TRUE

• FALSE

Which of the following is not considered cash for financial reporting purposes?

• Petty cash funds and change funds

• Money orders, certified checks, and personal checks

• Coin, currency, and available funds

• Postdated checks and I.O.U.'s

In which account are post-dated checks received classified?

• Receivables.

• Prepaid expenses.

• Cash.

• Payables.

What is a compensating balance?

• Savings account balances.

• Margin accounts held with brokers.

• Temporary investments serving as collateral for outstanding loans.

• Minimum deposits required to be maintained in connection with a borrowing arrangement.

Under which section of the balance sheet is "cash restricted for plant expansion" reported?

• Current assets.

• Non-current assets.

• Current liabilities.

• Stockholders' equity.

The category "trade receivables" includes

• advances to officers and employees.

• income tax refunds receivable.

• claims against insurance companies for casualties sustained.

• none of these.