1
INTERMEDIATE ACCOUNTING 1 Questions and
Correct Answers
An entity had the following account balances on December 31, 2021:
Cash on hand, including a customer check ₱100,000 dated January 31, 2022 ₱
500,000
Cash in bank - current account 4,000,000
Cash in bank - payroll account 1,000,000
Cash in bank - restricted for plant addition expected to be disbursed in 2022
500,000
Cash in sinking fund set aside for bond payable due December 31, 2022
1,500,000
Three-month time deposit 2,000,000
What total amount should be reported as "cash" under current assets?
Ans✅✅: 6,900,000
An entity provided the following data on December 31, 2021:
Cash on hand ₱ 500,000
Cash in bank 4,000,000
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,2
Cash in sinking fund 1,500,000
Treasury bills, purchased November 1, 2021 and maturing January 31, 2022
2,500,000
Time deposit, purchased October 1, 2021 and maturing January 31, 2022
2,000,000
What amount should be reported as cash and cash equivalents on December
31, 2021?
Ans✅✅: 7,000,000
An entity had the following cash balances on December 31, 2021:
Cash in bank ₱5,000,000
Petty cash fund, all funds were reimbursed on December 31, 2021 50,000
Money market placement or commercial papers 1,500,000
Saving deposit 800,000
Cash in bank included ₱500,000 of compensating balance against short-term
borrowing arrangement on December 31, 2021. The compensating balance is
legally restricted as to withdrawal.
What amount should be reported as cash and cash equivalents on December
31, 2021?
Pretest - Stuvia US
, 3
Ans✅✅: 6,850,000
An entity reported the following information at year-end:
- Share investments of ₱1,000,000 that are very actively traded in the stock
market.
- Government treasury bills of ₱2,000,000 with a 10-year term but purchased
on December 31 at which time the bills had two months to go until maturity.
- Cash of ₱3,500,000 in the form of coin, currency, saving account and
checking account.
- Commercial papers of ₱1,500,000 with term of nine months but purchased
on December 31 at which time the papers had three months to go until
maturity.
What total amount should be reported as cash and cash equivalents?
Ans✅✅: 7,000,000
An entity reported the following at year-end.
Cash on hand ₱ 500,000
Demand deposit 4,000,000
Certificate of deposit 2,000,000
Postdated customer check 300,000
Traveler's check 200,000
Manager's check 100,000
Money order 150,000
What amount of should be reported as cash at year-end?
Ans✅✅: 4,950,000
Which statement is true about bank overdraft?
Pretest - Stuvia US
INTERMEDIATE ACCOUNTING 1 Questions and
Correct Answers
An entity had the following account balances on December 31, 2021:
Cash on hand, including a customer check ₱100,000 dated January 31, 2022 ₱
500,000
Cash in bank - current account 4,000,000
Cash in bank - payroll account 1,000,000
Cash in bank - restricted for plant addition expected to be disbursed in 2022
500,000
Cash in sinking fund set aside for bond payable due December 31, 2022
1,500,000
Three-month time deposit 2,000,000
What total amount should be reported as "cash" under current assets?
Ans✅✅: 6,900,000
An entity provided the following data on December 31, 2021:
Cash on hand ₱ 500,000
Cash in bank 4,000,000
Pretest - Stuvia US
,2
Cash in sinking fund 1,500,000
Treasury bills, purchased November 1, 2021 and maturing January 31, 2022
2,500,000
Time deposit, purchased October 1, 2021 and maturing January 31, 2022
2,000,000
What amount should be reported as cash and cash equivalents on December
31, 2021?
Ans✅✅: 7,000,000
An entity had the following cash balances on December 31, 2021:
Cash in bank ₱5,000,000
Petty cash fund, all funds were reimbursed on December 31, 2021 50,000
Money market placement or commercial papers 1,500,000
Saving deposit 800,000
Cash in bank included ₱500,000 of compensating balance against short-term
borrowing arrangement on December 31, 2021. The compensating balance is
legally restricted as to withdrawal.
What amount should be reported as cash and cash equivalents on December
31, 2021?
Pretest - Stuvia US
, 3
Ans✅✅: 6,850,000
An entity reported the following information at year-end:
- Share investments of ₱1,000,000 that are very actively traded in the stock
market.
- Government treasury bills of ₱2,000,000 with a 10-year term but purchased
on December 31 at which time the bills had two months to go until maturity.
- Cash of ₱3,500,000 in the form of coin, currency, saving account and
checking account.
- Commercial papers of ₱1,500,000 with term of nine months but purchased
on December 31 at which time the papers had three months to go until
maturity.
What total amount should be reported as cash and cash equivalents?
Ans✅✅: 7,000,000
An entity reported the following at year-end.
Cash on hand ₱ 500,000
Demand deposit 4,000,000
Certificate of deposit 2,000,000
Postdated customer check 300,000
Traveler's check 200,000
Manager's check 100,000
Money order 150,000
What amount of should be reported as cash at year-end?
Ans✅✅: 4,950,000
Which statement is true about bank overdraft?
Pretest - Stuvia US
