Free Printable Cash and Cash Equivalents Activity

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Cash and Cash Equivalents Activity

Total questions: 17

Worksheet time: 23mins

Name

Class

Date

To be reported as part of cash and cash equivalents, the cash and cash equivalent must be:

Unrestricted in use for current operations

Available for the purchase of property, plant and equipment

Set aside for liquidation of long-term debt

Deposited by bank

All of the following can be classified as cash and cash equivalents, except:

Redeemable preference shares acquired and due in 60 days

Commercial paper held and due for repayment in 90 days

Equity instrument

Bank overdraft

If material, deposits in foreign bank which are subject to foreign exchange restriction shall be classified

Separately as current asset with appropriate disclosure classified

Separately as non-current asset with appropriate disclosure

Separately as current asset without appropriate disclosure

Separately as non-current asset without appropriate disclosure

Which is not considered as a cash equivalent?

A three-year treasury note maturing on October 30, 2020 purchased by the entity on September 15, 2020

A three-year treasury note maturing on October 30, 2020 purchased by the entity on June 30, 2020

A 90-day treasury bill

A 60-day money-market placement

Which item should be excluded from cash and cash equivalents in the current year-end statement of financial position?

The minimum cash balance in the entity’s current account which is maintained to avoid service charges

A check issued by the entity on December 27, 2020 but dated January 15, 2021

Time deposit which matures in one year

A customer’s check denominated in a foreign currency

At the end of the current year, an entity had various checks and papers in its safe. Which item should not be included in its cash account in the current year-end statement of financial position?

€ 30,000 cash in current account

Past promissory note issued in favor of the entity by its President

Another entity’s P225,000 check payable to the entity dated December 15, 2020

The entity’s undelivered check payable to a supplier dated December 31, 2020

Unreleased checks, which are checks drawn before the end of reporting period but held for later delivery to creditors

Shall be treated as outstanding checks

Shall be restored to the cash balance

Shall be treated as outstanding checks if the date is shortly after the end of reporting period

Shall be treated as outstanding checks if they are ultimately encashed

The petty cash fund account under the imprest fund system is debited

Only when the fund is created

When the fund is created and everytime it is replenished

When the fund is created and when the size of the fund is increased

When the fund is created and when the size of the fund is decreased

When a petty cash fund is used, which of the following is true?

The balance of the petty cash fund should be reporting in the statement of financial position as a long-term investment

The petty cashier’s summary of petty cash payments serves as a journal entry that is posted to the appropriate general ledger account

The reimbursement of the petty cash fund should be credited to the cash account

Entries that include a credit to the cash account should be recorded at the time the payments from the petty cash fund are made

10.

A cash short or over account

Is not generally accepted

Is debited when the petty cash fund proves out over

Is debited when the petty cash fund proves out short

Is a contra account for cash

11.

Please refer to the image below:

(a)

12.

Please refer to the image below:

(a)

13.

Acton Company needs to make adjusting entries for each of the following reconciling items. Identify the account to be debited and the account to be credited in each case.

A check for P59 written to the company by J. Neutron was returned NSF.

Debit: (a)

Credit: (b)

Choose from the below words

Accounts Receivable

Cash

Accounts Payable

14.

Which one of the following items would not be considered cash? (a)

Coins

Money orders

Currency

Postdated checks

15.

(a) includes undeposited collections such as bills and coins, customer’s checks, manager’s checks, traveler’s checks, cashier’s checks, bank drafts and money order.

Choose from the below words

Cash on hand

Cash in bank

Cash fund

16.

Cash is generally measured at (a)

Choose from the below words

face value

fair value

current value

17.

MT Company had the following balances on December 31, 2018:

Cash in checking account ------------------------------------------------------- P 350,000

Cash in money market account -------------------------------------------------- 750,000

Treasury bill, purchased November 1, 2018 maturing January 31, 2019 ----- 3,500,000

Time deposit purchased December 1, 2018 maturing March 31, 2019 ------- 4,000,000

What amount should be reported as cash and cash equivalents on December 31, 2018?

(a)

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Cash and Cash Equivalents Activity

Total questions: 17

Worksheet time: 23mins

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