ACCT 3311 Final Exam questions with
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answers
unearned revenue decreases when - CORRECT ANSWERS
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✔✔you provide a service but you don't collect cash
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regarding the cash flow statement, bonds payable
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decreases when - CORRECT ANSWERS ✔✔a bond has
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been paid off. subtract this
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regarding the cash flow statement, bonds payable
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increases when - CORRECT ANSWERS ✔✔you have
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acquired a new loan. add this |\ |\ |\ |\ |\
regarding the cash flow statement, when a long term
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liability increases you - CORRECT ANSWERS ✔✔add it
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regarding the cash flow statement, when a long term
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liability decreases you - CORRECT ANSWERS ✔✔subtract
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it
items included in cash on the balance sheet - CORRECT
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ANSWERS ✔✔coins and currency, petty cash and change
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funds, bank checking and savings balances that a firm
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, can write checks against, money orders, checks and bank
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drafts, money market funds the firm can write checks
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against, voluntarily restricted cash |\ |\ |\
what conditions must be met for short term treasury bills
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and bank commercial paper to be considered cash? -
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CORRECT ANSWERS ✔✔highly liquid, have a maturity of 3|\ |\ |\ |\ |\ |\ |\ |\
months or less, have low price volatility- this excludes
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stock
how is legally restricted cash reported? - CORRECT
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ANSWERS ✔✔reported as either a non cash current asset |\ |\ |\ |\ |\ |\ |\ |\ |\
or as a non current asset depending on how long the
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restriction applies |\
what are compensating balances? - CORRECT ANSWERS
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✔✔an example of legally restricted cash- these are
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minimum balances required to be maintained by a lender
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to support a borrowing arrangement
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items that are not cash - CORRECT ANSWERS ✔✔post
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dated checks, travel advances, certificates of deposit,
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commercial paper, treasury bills, legally restricted cash |\ |\ |\ |\ |\ |\
over drafts are to be classified as a liability, the only
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exception is - CORRECT ANSWERS ✔✔when the firm has |\ |\ |\ |\ |\ |\ |\ |\ |\
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answers
unearned revenue decreases when - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔you provide a service but you don't collect cash
|\ |\ |\ |\ |\ |\ |\ |\
regarding the cash flow statement, bonds payable
|\ |\ |\ |\ |\ |\ |\
decreases when - CORRECT ANSWERS ✔✔a bond has
|\ |\ |\ |\ |\ |\ |\ |\
been paid off. subtract this
|\ |\ |\ |\
regarding the cash flow statement, bonds payable
|\ |\ |\ |\ |\ |\ |\
increases when - CORRECT ANSWERS ✔✔you have
|\ |\ |\ |\ |\ |\ |\
acquired a new loan. add this |\ |\ |\ |\ |\
regarding the cash flow statement, when a long term
|\ |\ |\ |\ |\ |\ |\ |\ |\
liability increases you - CORRECT ANSWERS ✔✔add it
|\ |\ |\ |\ |\ |\ |\
regarding the cash flow statement, when a long term
|\ |\ |\ |\ |\ |\ |\ |\ |\
liability decreases you - CORRECT ANSWERS ✔✔subtract
|\ |\ |\ |\ |\ |\ |\
it
items included in cash on the balance sheet - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔coins and currency, petty cash and change
|\ |\ |\ |\ |\ |\ |\ |\
funds, bank checking and savings balances that a firm
|\ |\ |\ |\ |\ |\ |\ |\ |\
, can write checks against, money orders, checks and bank
|\ |\ |\ |\ |\ |\ |\ |\
drafts, money market funds the firm can write checks
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
against, voluntarily restricted cash |\ |\ |\
what conditions must be met for short term treasury bills
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
and bank commercial paper to be considered cash? -
|\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔highly liquid, have a maturity of 3|\ |\ |\ |\ |\ |\ |\ |\
months or less, have low price volatility- this excludes
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
stock
how is legally restricted cash reported? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔reported as either a non cash current asset |\ |\ |\ |\ |\ |\ |\ |\ |\
or as a non current asset depending on how long the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
restriction applies |\
what are compensating balances? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔an example of legally restricted cash- these are
|\ |\ |\ |\ |\ |\ |\ |\
minimum balances required to be maintained by a lender
|\ |\ |\ |\ |\ |\ |\ |\ |\
to support a borrowing arrangement
|\ |\ |\ |\
items that are not cash - CORRECT ANSWERS ✔✔post
|\ |\ |\ |\ |\ |\ |\ |\ |\
dated checks, travel advances, certificates of deposit,
|\ |\ |\ |\ |\ |\ |\
commercial paper, treasury bills, legally restricted cash |\ |\ |\ |\ |\ |\
over drafts are to be classified as a liability, the only
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
exception is - CORRECT ANSWERS ✔✔when the firm has |\ |\ |\ |\ |\ |\ |\ |\ |\
