Audit Of Cash And Cash Equivalents

Explain the financial statement presentation of cash and cash equivalents

Daftar Isi

1. Explain the financial statement presentation of cash and cash equivalents

Answer:

Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a company's assets that are cash or can be converted into cash immediately. Cash equivalents include bank accounts and marketable securities, which are debt securities with maturities of less than 90 days.

Explanation:

2. A compensating balance must be included in cash and cash equivalents

Answer

IT IS TRUE

Explanation

A compensating balance is a minimum deposit that must be maintained in a bank account by a borrower.

The requirement for a compensating balance is most common with corporate rather than individual loans. The borrower cannot use the money but is required to disclose it in the borrower’s notes attached to its financial statements.

Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a company's assets that are cash or can be converted into cash immediately. Cash equivalents include bank accounts and marketable securities such as commercial paper and short-term government bonds.

3. Which is false concerning measurement of cash and cash equivalents?

QUESTIONWhich is false concerning measurement of cash and cash equivalents?ANSWERCash equivalents should be valued at maturity value meaning face value plus interest.

CARRY ON LEARNING

4. All of the following are cash and cash equivalents, EXCEPT Select one: a. Currency that is legal tender b. Cash to be paid by a debtor c. Money market replacement d. Savings deposit

c po ung sagot...

money market replacement

5. True or False: 1. Business activities are classified into operating, investing, and funding activities in the Statement of Cash Flows. 2. Salary and utility payments are reported as operating activities. 3. Non-cash expenses such as depreciation and amortization are deducted from net income to arrive at the cash flows from operating activities. 4. A negative cash flow from investing activities is a bad indicator of the company's ability to generate cash. 5. The bottom line of the Statement of Cash Flows is equivalent to the cash balance presented on the Statement of Financial Position.

1.TRUE2.TRUE3.FALSE4.FALSE5.TRUE

6. A major consideration in the audit of the general cash balance is the possibility of fraud. the auditor must extend his or her procedures in the audit of year end cash to determine the possibility of a material fraud when there are

Answer:

= inadequate internal controls.

Explanation:

A major consideration in the audit of the general cash balance is the possibility of fraud. The auditor must extend his or her procedures in the audit of year-end cash to determine the possibility of a material fraud when there are: inadequate internal controls.

7. All of the following are cash and cash equivalents, EXCEPTa. Savings depositb. Money market placementc. Cash to be paid by a debtord. Currency that is legal tender

Subject Economics

Answer:

The correct answer among the four given choices is letter c. The choices are examples of cash and cash equivalents except cash to be paid by a debtor.

Cash to be paid by the debtor is an account receivable. This is not yet collected so it is not under cash and cash equivalents.

See discussions below.

ASSETS

In accounting, assets are any resources with value owned by the business, company, entity or person. These are legally owned by the business or entity. Assets have two categories, these are:

Current AssetsNon-current Assets

1. Current Assets

-these are assets that can be readily converted to cash in a normal operating cycle of a business. The normal operating cycle of business is within 12 months or 1 year period.

Some Examples of Current AssetsCash and cash equivalentsAccounts receivableInventoryPrepaid ExpensesMarketable Securities/ Short-term Investments

CASH and CASH EQUIVALENTS

Cash Equivalents are described as short-term assets and highly liquid investments that are readily convertible into cash and acquired three months before maturity.

Cash and cash equivalents are normally shown in one line in the balance sheet section. These are shown as the first elements under current assets section.

Examples of Cash include the following:

currency and coinschecks received from customers but not yet depositedchecking accounts/ savings depositpetty cash

Examples of Cash Equivalents include the following:

Treasury BillsCommercial PaperMoney Market Accounts

For further related topic about assets and liabilities brainly.ph/question/854284

Code 11.11.3.8.

8. Which of the following is not considered as a cash equivalent?

Answer:

Investments in liquid securities, such as stocks, bonds, and derivatives, are not included in cash and equivalents. Even though such assets may be easily turned into cash (typically with a three-day settlement period), they are still excluded.

9. Lackadaisical Company had the following account balances on December 31, 2012:Cash in bank-current account - 4,000,000 Cash in bank-payroll account - 1,500,000Cash on hand - 500,000 Cash in bank-restricted for equipment acquisition expected to be disbursed in 2013 - 1,000,000Treasury bills, purchased November 1, 2012 and due March 1. 2013 - 2,000,000The cash on hand included a P200,000 customer check payable to Lackadaisical Company dated January 15, 2013. What total amount should be reported as "cash and cash equivalents" on December 31, 2012?

Answer:

101081518138639

Step-by-step explanation:

1/1016

10. Which item should be excluded from cash and cash equivalents on the current year?

Answer:

Cash is the most liquid asset and is presented first on the balance sheet under the current asset section. Investments in liquid securities, such as stocks, bonds, and derivatives, are not included in cash and equivalents. Even though such assets may be easily turned into cash (typically with a three-day settlement period), they are still excluded

Explanation:

11. TRUE OR FALSE1. Savings accounts are usually classified as cash on the balance sheet.2. Certificates of deposit are usually classified as cash on the balance sheet3. Companies include postdated checks and petty cash funds as cash4. Cash equivalents are investments with original maturities of six months or less5. Bank overdrafts are always offset against the cash account in the balance sheet

Answer:

true

false

true

answer by what i know though

12. Which of the following should be excluded from cash and cash equivalents in the current?

cash equivalents of current to your success

13. Define cash equivalents

Answer:

Cash equivalents are investments securities that are meant for short-term investing; they have high credit quality and are highly liquid. Cash equivalents, also known as "cash and equivalents," are one of the three main asset classes in financial investing, along with stocks and bonds.

14. If the auditor uses a proof of cash as one of its analytical procedures in audit of cash balance, the auditor most likely:

Answer:

An imprest petty cash fund would least likely be used to pay for which of the following items?

A) Minor office supplies

B) Monthly interest expense

C) Stamps for small mailings

D) Small contributions to a local charity

Answer:

Opo

Explanation:

pasensya na po pero pwede po ay iba nalang ang maganswer. dahil hindi ko po alam ang sagit

15. QUESTION 10: It is the amount of cash and cash-equivalents being transferred into and out of the business? *Cash FlowFair market valueGeneral annuityGeneral ordinary annuity

Answer:

Cash flow

Step-by-step explanation:

Hope it helps :)

16. Find the value of x in the cash flow diagram, given that would the equivalent present worth of the cash flow diagram of 22,000 and interest rate is 13% per year

Answer:

can u explain it more?

Step-by-step explanation:

17. _____ are the modern equivalent of petty cash.

Purchase orders are the modern equivalent of petty cash.

18. Given that the discount rate is 11.5% what is the equivalent uniform annual cash flow of the ff stream of cash flows

Answer:

I dont get it

Explanation:

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