Reference no: EM132894485
Question 1. Which of the following should not be included in cash?
A. cash collections not deposited at year end
B. postdated checks drawn and delivered to payees
C. checks drawn but not yet delivered to the payees
D. postdated checks received from customers
Question 2. On October 31, 20x1, Entity A had cash accounts at three different banks. One account balance is segregated solely for a November 15, 20x1 payment into a bond sinking fund. A second account, used for branch operations, is overdrawn . The third account, used for regular corporate operations, has a positive balance. How should these accounts be reported in Entity A's Oct. 31, 20x1 classified balance sheet?
A. The segregated account should be reported as a non-current asset, the regular account should be reported as a current asset, and the overdraft should be reported as a current liability.
B. The segregated and regular accounts should be reported as current assets net of the overdraft.
C. The segregated and regular accounts should be reported as current assets, and the overdraft should be reported as a current liability.
D. The segregated account should be reported as a noncurrent asset, and the regular account should be reported as a current asset net of the overdraft.