F3-M1 - Cash and Cash Equivalents

Question 1

Cash equivalents are highly liquid investment securities with maturity dates within ____ days of the date purchased.

Answer 1

90

Question 2

_______ cash must be segregated from other cash.

Answer 2

Restricted

Question 3

________ reconcile ending balances per bank and books, with adding and subtracting items causing differences between the two balances.

Answer 3

Bank reconciliations

Question 4

For CD you must always look at the ______ to determine if they are cash equivalents

Answer 4

Original Maturity Date

Question 5

Cash can be classified as either ______ or _______

Answer 5

Restricted or Unrestricted

Question 6

if a restriction on cash is associated with a current asset or liability it should be classified as

Answer 6

Current Asset

Question 7

if a restriction on cash is associated with a long term asset or liability it should be classified as

Answer 7

non-current Asset

Question 8

Which components effect Bank Balance on a Bank Reconciliation (3)

Answer 8

(ADD) Deposits in Transit and (Subtract) Outstanding Checks and Errors (Add or subtract to bank)

Question 9

Which components effect Book Balance on a Bank Reconciliation (6)

Answer 9

1) Service charges (Subtract), 2) Bank Collections (Add), (add/ subtract) 3) Errors, (Subtract) 4) NSF, (Add) 5) Interest Income and 6) Voided Check (Add)

Question 10

Negative Balance and Positive Balances are at separate banks how it this treated on the Balance Sheet

Answer 10

Negative balance (if at separate bank - current liability) and positive balance (Cash), if same bank (the amounts are netted)

Question 11

_______ are defined as money or a claim to receive a sum of money, the amount of which is fixed or determinable without reference to future prices of specific goods or services.

Answer 11

Monetary assets